streamofthought

Dalio Recipe

Ray Dalio writes in Principles for Dealing with the Changing World Order that there is a natural sequence that leads to the rise of empires:

  1. New leadership takes initiative to create a good system,
  2. that involves investing in strong education,
  3. including work ethics and civility,
  4. which leads to innovation and the creation of new technologies,
  5. improving the productivity and competitiveness of the country.
  6. This creates great economic output,
  7. revitalizing the country’s capital markets.
  8. When the country opens up, the world is willing to trade,
  9. which positions the currency as a major reserve currency,

It seems to me that there’s a translation of these dynamics on a personal note. Something along these lines:

  1. Learn.
  2. Apply what you’ve learned in inventive new ways.
  3. Use that differential knowledge or skill to turn it into income.
  4. Reinvest that income in personal growth.
  5. Accumulate savings over time and achieve financial freedom.