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Finance legend Ray Dalio advises for 3 stages of life

Finance legend Ray Dalio advises for 3 stages of life
Vinicius Barbosa

Ray Dalio is the Chief investment officer of Bridgewater Associates, the largest hedge fund in the United States, and a finance legend. The author of the best-seller “Principles: Life & Work” posted a series of advice for the different stages of life.

It is noteworthy that Bridgewater Associates has $124.31 billion in assets under management (AUM), according to Forbes. Moreover, Ray Dalio founded the hedge fund in 1975, in his twenties, achieving huge professional and personal success in life.

Top U.S. hedge funds per AUM. Source: Forbes

In particular, Ray Dalio advised people in their 20s, 30s, and 40s-50s on his YouTube channel dedicated to the book. There are valuable lessons to take from his advice, which can be applied to investment psychology and working life.

Ray Dalio’s advice for people in their 20s and 30s

The finance legend begins by addressing how people in their twenties have started a “whole different phase” of their lives. He urges these newborn adults to understand the benefits and challenges of going independent and taking responsibility for their actions.

“You are going to work, you are going to learn, and you are going to try to be successful. In this whole different phase in your life, the best thing I can say is: Make your work and your passion the same thing, and don’t forget about the money part.”

– Ray Dalio

Next, Raymond Thomas Dalio explains that, in their thirties, people go through another stage of life. At that stage, all the things that started maturing during the twenties are now becoming “more serious.”

This applies to work and relationships, which involve starting a family and facing a “work-life balance issue,” in his words. According to him, people in their 30s may get annoyed while making hard choices between family and work. However, they should try to make fewer choices and seek “more life in life.”

“There are things that you can do (…) that you can be more efficient, more effective, and you can get more out of life. So, the trade-off is less.”

– Ray Dalio

Ray Dalio’s tips for the midlife crisis between their 40s and 50s

Notably, midlife is known as “the toughest part of life,” says Dalio, highlighting this stage’s difficulties and the midlife crisis:

“You have to juggle your work and your family, and it is not just your immediate family, maybe your parents, your children. You are trying to be successful in life and you find out that, maybe, life is tougher than you expected.”

– Ray Dalio

Therefore, Ray Dalio first recommends people living in a midlife crisis meditate. This, he says, can give these people the calmness they need to face these difficulties. Nevertheless, there might still be “too much to do,” or “too much work.” For that, the legendary investor and businessman points out to finding leverage.

“Think how you get leverage. Think about how you get more out of an hour than you did before. It is all a matter of leverage. If you know how to leverage yourself well, then you are going to be able to get more life out of life.”

– Ray Dalio

Interestingly, he explains that this stage is not just a matter of choice like it was during the thirties. Now, it is a matter of finding leverage in every choice that was previously made.

In summary, the finance legend believes that everybody needs to live each stage of life accordingly. The ability to seek independence, learn new things, make choices, and find leverage will help in the journey of life.

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