Ray Dalio’s 5-Step Process

Use the 5-Step Process to Get What You Want Out of Life

1) Set clear ambitious goals:

First you have to pick what you are going after—your goals. Your choice of goals will determine your direction.

2) Identify and don’t tolerate problems:

As you move toward your goals, you will encounter problems. Some of those problems will bring you up against your own weaknesses.

3) Diagnose problems to get at their root causes:

If you want to reach your goals, you must be calm and analytical so that you can accurately diagnose your problems,

4) Design a plan:

Design a plan to get around the problems.

5) Execute:

Do what’s necessary to push through to completion.

Repeat:

Look at the new results you achieve and go through the process again. To evolve quickly, you will have to do this fast and continuously, setting your goals successively higher.

Questions:

1) Which of these five steps are you strongest at and routines do well, and which ones are you weakest at and do not do enough of?

2) How can you minimize the impact of your weaknesses—through working with others or by reducing the weaknesses? How can you make the most of your strengths?

3) How will you use this 5-Step Process to get more out of your life?

Further Reading: Principles by Ray Dalio

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