What Ray Dalio’s principles can teach us about raising resilient kids

Ray Dalio can be a bit of a controversial figure.

That’s one of the reasons why I like him. ✌️

And being a fairly average kid from Queens who grew up to launch the world’s largest hedge fund, Bridgewater Associates, certainly adds to his charm. 

In 2017, Ray published a book called Principles: Life & Work (if you haven’t read it yet, get on it). I was recently revisiting it, and realized how important Ray’s principles are for raising resilient kids.

Here are my three favorites, and why they’re important for kids. 👇

Principle #1: Embrace reality and deal with it

☎️ What does Ray say about it?

"Truth—or, more precisely, an accurate understanding of reality—is the essential foundation for any good outcome.”

🤔 What does it mean?

You can’t solve a problem if you don’t believe the problem exists. So many people walk through life avoiding the hard stuff, but whine when things don’t turn out their way.

🔥 Why is it important for kids?

Kids need to learn from an early age that reality is their friend. This builds the foundation not just for problem-solving, but for thriving in unpredictable environments. 

So let them fail. If it’s good enough for Elon, it’s good enough for your kid.

Principle #2: Use the five-step process to get what you want out of life

☎️ What does Ray say about it?

“It is essential that you approach this process in a clear-headed, rational way, looking down on yourself from a higher level and being ruthlessly honest.”

🤔 What does it mean?

These five steps are really just a combination of two basic ideas:

1. Setting goals

2. Embracing reality

🔥 Why is it important for kids?

Overcoming adversity is vital for developing resilience. If kids aren’t facing obstacles when they’re trying to reach their goals, their goals aren’t big enough.

So help them set big goals, and achieve big outcomes.

Principle #3:  Be radically open-minded

☎️ What does Ray say about it?

“Sincerely believe that you might not know the best possible path and recognize that your ability to deal well with ‘not knowing’ is more important than whatever it is you do know.”

🤔 What does it mean?

This is my favorite principle! It’s the foundation of a growth mindset. It means that we should all stop worrying about having the right answers, and instead focus on asking the right questions. 

🔥 Why is it important for kids?

Kids need to know that their opinions are not enough. To be successful, they should not only be seeking out the viewpoints of others, but also questioning sources they trust.

This doesn’t make them a “follower”. It will equip them with the skills needed to be a true thought leader.