Earlier this year, I had the chance to read Principles by Ray Dalio, and it’s been one of those books that has stayed with me long after I turned the last page. Dalio’s straightforward yet profound approach to decision-making, life, and leadership resonated deeply with me, especially as I’ve spent time reflecting on the lessons I’ve learned throughout the year. Now, as we approach the new year, I’ve found myself revisiting some of the key concepts from his book—and from other readings I’ve done—thinking about how they can shape my intentions and actions moving forward.

Ray Dalio offers a simple yet profound framework to help find clarity and focus: three key questions. His approach is rooted in radical transparency, truth-seeking, and a deep understanding of reality. In a world full of distractions, competing priorities, and complex decisions, it’s easy to get lost in the noise. How do you navigate the path to success when you’re overwhelmed by choices and possibilities? In his book, he challenges us to ask ourselves three essential questions:

1. What do you want?

This first question may seem straightforward, but the real value lies in digging deeper beneath the surface. Sure, there are the typical things—progressing in my career, maintaining good health, nurturing relationships. But what do I really want, deep down? What is it that would give me a sense of purpose and fulfilment, beyond just crossing off tasks on a to-do list?

This question has forced me to dig deeper than surface-level ambition: understanding what I truly value, the kind of life I envision, and what would make me feel that my time and energy have been well-spent. Of course, I know that the answer isn’t static; it changes with time, context, and experience. But having this clarity makes it easier to say “yes” to what truly aligns with the larger vision and “no” to distractions or goals that don’t serve that bigger purpose.

We are bombarded with societal expectations, other people’s desires, and shifting trends, it’s easy to get caught up in pursuing what others think is important. But achieving anything meaningful requires deep self-reflection and a clear understanding of your own goals.

It’s not just about financial success, career progression, or societal status. What do you want? is an invitation to explore your deeper values—what really drives you, what kind of life you envision, and what legacy you wish to leave behind. This clarity becomes the compass that guides all your decisions.

2. What is true?

Once you know what you want, the next question Dalio asks is, What is true? This is about facing reality head-on—accepting things as they are, not as you wish them to be. It involves a commitment to seeing the world without bias, avoiding wishful thinking, and confronting uncomfortable truths.

Dalio believes that understanding what is true is essential for making informed, rational decisions. This doesn’t mean simply accepting facts as presented; it means actively seeking the truth, often through critical thinking, open-mindedness, and learning from mistakes. It also requires you to embrace feedback, even when it’s tough to hear.

What is true about my habits? Am I investing my time in ways that align with my long-term goals? What about my relationships—are they built on mutual respect and understanding, or am I holding onto something for the sake of comfort? This question has pushed me to take a hard look at my choices, decisions, and assumptions—and confront them with brutal honesty.

It’s not always easy to face the truth, especially when it involves acknowledging mistakes or letting go of old crutches. But it is only by confronting reality that we can make better decisions moving forward.

Without a strong grounding in reality, your efforts to achieve your goals are likely to be misaligned with the actual circumstances you face.

3. What will you give to get what you want in light of what is true?

The final question is where the rubber meets the road. Now that you know what you want and have a clear understanding of the truth, you must ask yourself: What am I willing to give in order to achieve my goals?

Dalio stresses that nothing comes for free. It’s one thing to know what you want and understand the truth about your current situation, but it’s an entirely different matter to acknowledge the sacrifices and hard work necessary to bridge the gap between where you are now and where you want to be. Success—whether in business, personal growth, or relationships—requires sacrifice. It might involve time, energy, effort, or resources. You might need to develop new skills, overcome obstacles, or endure discomfort. This question forces you to confront the reality of what you’re truly willing to put on the line to achieve what matters most to you.

What’s particularly powerful about this question is its emphasis on trade-offs. You can’t expect to have everything without making choices about what’s most important. What am I willing to give up? What habits, comforts, or distractions am I prepared to release in order to achieve the things that matter most? This has become especially important as I prepare for the new year. I know some goals will require more than just small adjustments—they’ll require big shifts in how I spend my time and energy.

Dalio highlights the importance of prioritisation and managing expectations. Achieving your highest goals may require letting go of other desires that are less aligned with your true purpose.

Why These Questions Matter

These three questions form the foundation of Dalio’s philosophy for both personal and professional growth. By regularly asking yourself:

  • What do I want?
  • What is true?
  • What will I give to get what I want in light of what is true?

You begin to cultivate a mindset of clarity, purpose, and resilience. This framework can help you cut through confusion and make decisions that are in harmony with your long-term vision.

Dalio’s approach isn’t just about achieving success in a material sense—it’s about achieving a life that is in alignment with your values and the reality around you. It’s about making conscious choices, facing difficulties with courage, and understanding that growth is a continual process of learning and adjusting to the ever-changing world.

In the end, these questions encourage you to engage with the world intentionally. They ask you to take responsibility for your goals, your actions, and the outcomes they create. And in doing so, they create the foundation for a life built on principles that serve your highest good.

Conclusion

Ray Dalio’s three key questions offer a framework for navigating the complexities of life with purpose and clarity. By knowing what you want, understanding what is true, and being prepared to give what’s necessary to achieve your goals, you put yourself in the best position to succeed—not just in the conventional sense, but in a way that is aligned with your authentic self and the reality of the world you live in.

It’s a process of constant reflection, learning, and growth. But by embracing these questions, you create a pathway to success that is rooted in deep truth and meaningful action.