Black and white portrait of Ray Dalio: Narrator and Creator of Life Principles

Principles are ways of successfully dealing with reality to get what you want out of life.

Ray Dalio, one of the world’s most successful investors and entrepreneurs, cites principles as his key to success.

Life Principle

Choose your habits well.

Habit is probably the most powerful tool in your brain’s toolbox. It is driven by a golf-ball-sized lump of tissue called the basal ganglia at the base of the cerebrum. It is so deep-seated and instinctual that we are not conscious of it, though it controls our actions.

If you do just about anything frequently enough over time, you will form a habit that will control you. Good habits are those that get you to do what your “upper-level you” wants, and bad habits are those that are controlled by your “lower-level you” and stand in the way of your getting what your “upper-level you” wants. You can create a better set of habits if you understand how this part of your brain works. For example, you can develop a habit that will make you “need” to work out at the gym.

Developing this skill takes some work. The first step is recognizing how habits develop in the first place. Habit is essentially inertia, the strong tendency to keep doing what you have been doing (or not doing what you have not been doing). Research suggests that if you stick with a behavior for approximately eighteen months, you will build a strong tendency to stick to it nearly forever.

I read Charles Duhigg’s best-selling book The Power of Habit, really opened my eyes about habits. Duhigg’s core idea is the role of the three-step “habit loop.” The first step is a cue—some “trigger that tells your brain to go into automatic mode and which habit to use,” according to Duhigg. Step two is the routine, “which can be physical or mental or emotional.” Finally, there is a reward, which helps your brain figure out if this particular loop is “worth remembering for the future.” Repetition reinforces this loop until over time it becomes automatic. This anticipation and craving is the key to what animal trainers call operant conditioning, which is a method of training that uses positive reinforcement. For example, dog trainers use a sound (typically a clicker) to reinforce behavior by pairing that sound with a more desirable reward (typically food) until the dog will perform the desired behavior when it merely hears the click. In humans, Duhigg says, rewards can be just about anything, ranging “from food or drugs that cause physical sensations, to emotional payoffs, such as the feelings of pride that accompany praise or self-congratulation.”

Habits put your brain on “automatic pilot.” In neuroscientific terms, the basal ganglia takes over from your cortex, so that you can execute activities without even thinking about them.

RECENT USER EXCHANGES

What are some habits one must have to grow and succeed?

I think curiosity and character are the two most important attributes to have. I’m not sure how to best build curiosity in people, but I’d say the habit of asking a lot of questions like “why” in order to make sense of things is good. As for character, the most important habit is to go to the pain because it will strengthen you which will give you the power you need to be successful. Pain + Reflection = Progress. With practice the pain won’t be as painful and you will begin to see the pleasures of the successes so that going to the pain will make you feel good rather than bad.

I finished your book principles and I’m so glad I read it at 18. It really made me have a different perspective in life.

Great! You might want to get my briefer book “Principles for Success“ and do the Life arc Exercise at the back to help you envision what your life world be like. Or better yet, get the free ”Principles in Action” app that will give you everything I have to offer in one place - most importantly you will get the Coach that will give you principles for the whatever situations you’re in and help you write down your own principles and refer to them later.

It's been said, “at first, you make your habits. Over time, your habits make you.”

That’s how it really is.

What are your habits and what habits do you think one who seeks success should have?

Pain + Reflection = Progress. Go to the pain because it will strengthen you which will give you the power you need to be successful. With practice the pain won’t be as painful and you will begin to see the pleasures of the successes so that going to the pain will make you feel good rather than bad.

What are ways to determine what the key 20 percent is?

Typically it’s about the five most important considerations. Name them, think about the relative importance of them and then rate them and you will get pretty close to getting and evaluating the important 20pct without dwelling on things that don’t matter much. If two things are too close to tell which the best choice is you can flip a coin to decide because it probably they’re probably about equally good. Keep moving forward realizing that after you make decision you can typically how it’s going and adjust so you don’t have to labor over your decisions past their points of diminishing returns. Even mistake are valuable because they’re learning experiences whereas not moving forward won’t get you anywhere.

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