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Undoubtedly we all struggle with decision making sometimes. There are different reasons as to why we struggle with making decisions. One of them is because we genuinely don’t know which choice is better for us. We may feel lost in that process because we do not know which choice is the better fit for us.
In Ray Dalio’s book Principles, Ray Dalio gives simple advice for dealing with the indecisiveness you encounter when making big or small decisions. The advice is developing a set of principles to help you make the best possible decision. You can think of principles as a set of criteria.
What are principles and how to use them
Principles are like rules you set for yourself. Some of the principles you develop may be being passionate about the decision you make or the decision being safe and comfortable. We can see principles being used nearly everywhere around us. Even the laws in our world can be seen as a set of principles.
Without these set of principles or “rules”, humans would have a hard time making decisions. A court makes decisions based on principles set by the legal system, An accountant makes decisions based on principles set by Finance, and so on.
Ray Dalio used a set of principles to guide him as an individual and help his company make good decisions. When Ray Dalio first started Bridgewater Associates, he developed a list of principles and kept developing them till his tenure as the CEO was over.
The principles developed by Ray Dalio now serve as guides for the company and help the company make good decisions. Some of the principles he developed are: Being radically transparent and honest, always testing, evaluating, and sorting people, and having an idea meritocracy where no one is above the system, not even the CEO.
Book: Principles by Ray Dalio (Purchase on Amazon)