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Weigh Second- and Third-Order Consequences

1.8 Weigh second- and third-order consequences.

By recognizing the higher-level consequences nature optimizes for, I‘ve come to see that people who overweigh the first-order consequences of their decisions and ignore the effects of second- and subsequent-order consequences rarely reach their goals. This is because first-order consequences often have opposite desirabilities from second-order consequences, resulting in big mistakes in decision making. For example, the first-order consequences of exercise (pain and time spent) are commonly considered undesirable, while the second-order consequences (better health and more attractive appearance) are desirable. Similarly, food that tastes good is often bad for you and vice versa.

Quite often the first-order consequences are the temptations that cost us what we really want, and sometimes they are the barriers that stand in our way. It’s almost as though nature sorts us by throwing us trick choices that have both types of consequences and penalizing those who make their decisions on the basis of the first-order consequences alone.

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Pain + Reflection = Progress

1.7 Pain + Reflection = Progress.

There is no avoiding pain, especially if you’re going after ambitious goals. Believe it or not, you are lucky to feel that kind of pain if you approach it correctly, because it is a signal that you need to find solutions so you can progress. If you can develop a reflexive reaction to psychic pain that causes you to reflect on it rather than avoid it, it will lead to your rapid learning/evolving. After seeing how much more effective it is to face the painful realities that are caused by your problems, mistakes, and weaknesses, I believe you won’t want to operate any other way. It’s just a matter of getting in the habit of doing it.

Most people have a tough time reflecting when they are in pain and they pay attention to other tings when the pain passes, so they miss out on the reflections that provide the lessons. If you can reflect well while you’re in pain (which is probably too much to ask), great. But if you can remember to reflect after it passes, that’s valuable too.

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Understand Nature’s Practical Lessons

1.6 Understand nature’s practical lessons.

I have found understanding how nature and evolution work helpful in a nuber of ways. Most importantly, it has helped me deal with my realities more effectively and make difficult choices. When I began to look at reality through the perspective of figuring out how it really works, instead of thinking things should be different, I realized that most everything that at first seemed “bad” to me—like rainy days, weaknesses, and even death—was because I held preconceived notions of what I personally wanted. With time, I learned that my initial reaction was because I hadn’t put whatever I was reacting to in the context of the fact that reality is built to optimize for the whole rather than for me.

a. Maximize your evolution.

Earlier, I mentioned that the unique abilities of thinking logically, abstractly, and from a higher level are carried out in structures located in the neocortex. These parts of the brain are more developed in humans and allow us to reflect on ourselves and direct our own evolution. Because we are capable of conscious, memory-based learning, we can evolve further and faster than any other species, changing not just across generations but within our own lifetimes.

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Evolving is Life’s Greatest Accomplishment

1.5 Evolving is life’s greatest accomplishment and its greatest reward.

It is instinctually that way, which is why most of us feel the pull of it—in other words, we instinctively want to get better at things and have created and evolved technology to help us. History has shown that all species will either go extinct or evolve into other species, though with our limited time window that is hard for us to see. But we do know that what we call mankind was simply the result of DNA evolving into a new form about two hundred thousand years ago, and we know that minkind will certainly either go extinct or evolve into a higher state. I personally believe there is a good chance man will begin to evolve at an accelerating pace with the help of man-made technologies that can analyze vast amounts of data and “think” faster and better than we can. I wonder how many centuries it will take for us to evolve into a higher-level species that will be much closer to omniscience than we are now—if we don’t destroy ourselves first.

One of the great marvels of nature is how the whole system, which is full of individual organisms acting in their own self-interest and without understanding or guiding what’s going on, can create a beautifully operating and evolving whole. While I’m not an expert at this, it seems that it’s because evolution has produced a) incentives and interactions that lead to individuals pursuing their own interests and resulting in the advancement of the whole, b) the natural selection process, and c) rapid experimentatioin and adaptation.

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Learn How Reality Works (2/2)

To try to figure out the universal laws of reality and principles for dealing with it, I‘ve found it helpful to try to look at things from nature’s perspective. While mankind is very intelligent in relation to other species, we have the intelligence of moss growing on a rock compared to nature as a whole. We are incapable of designing and building a mosquito, let alone all the species and most of the other things in the universe. So I start from the premise that nature is smarter than I am and try to let nature teach me how reality works.

a. Don’t get hung up on your views of how things “should” be because you will miss out on learning how they really are.

It’s important not to let our biases stand in the way of our objectivity. To get good results, we need to be analytical rather than emotional.

Whenever I observe something in nature that I (or mankind) think is wrong, I assume that I’m wrong and try to figure out why what nature is doing makes sense. That has taught me a lot. It has changed my thinking about 1) what’s good and what’s bad, 2) what my purpose in life is, and 3) what I should do when faced with my most important choices. To help explain why, I will give you a simple example.

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Learn How Reality Works (1/2)

1.4 Look to nature to learn how reality works.

All the laws of reality were given to us by nature. Man didn’t create these laws, but by understanding them we can use them to foster our own evolution and achieve our goals. For example, our ability to fly or to send cell phone signals around the world came from understanding and apply the existing rules of reality—the physical laws or principles that govern the natural world.

While I spend most of my time studying the realities that affect me most directly—those that drive economies, the markets, and the people I deal with—I also spend time in nature and can’t help reflecting on how it works by observing, reading, and speaking with some of the greatest specialists on the subject. I’ve found it both interesting and valuable to observe which laws we humans have in common with the rest of nature and which differentiate us. Doing that has had a big impact on my approach to life.

First of all, I see how cool it is that the brain’s evolution gave us the ability to reflect on how reality works in this way. Man’s most distinctive quality is our singular ability to look down on reality from a higher perspective and synthesize an understanding of it. While other species operate by following their instincts, man alone can go above himeslef and look at himself within his circumstances and within time (including before and after his existence). For example, we can ponder the ways that nature’s flying machines, swimming machines, and billions of other machines, from the microscopic to the cosmic, interact with one another to make up a working whole that evolves through time. This is because the evolution of the brain gave man a much more developed neocortex, which gives us the power to think abstractly and logically.

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1.3 Be radically open-minded and radically transparent.

None of us is born knowing what is true; we either have to discover what’s true for ourselves or believe and follow others. The key is to know which path will yield better results. I believe that:

a. Radical open-mindedness and radical transparency are invaluable for rapid learning and effective change.

Learning is the product of a continuous real-time feedback loop in which we make decisions, see their outcomes, and improve our understanding of reality as a result. Being radically open-minded enhances the efficiency of those feedback loops, because it makes what you are doing, and why, so clear to yourself and others that there can’t be any misunderstandings. The more open-minded you are, the less likely you are to deceive yourself—and the more likely it is that others will give you honest feedback. If they are “believable” people (and it’s very important to know who is “believable”), you will learn a lot from them.

Being radically transparent and radically open-minded accelerates this learning process. It can also be difficult because being radically transparent rather than more guarded exposes one to criticism. It’s natural to fear that. Yet if you don’t put yourself out there with your radical transparency, you won’t learn.

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Truth is the Essential Foundation

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

Most people fight seeing what’s true when it’s not what they want it to be. That’s bad, because it is more important to understand and deal with the bad stuff since the good stuff will take care of itself.

Do you agree with that? If not, you are unlikely to benefit from what follows. If you do agree, let’s build on it. [=> go to the next life principle: 1.3 Be radically open-minded and radically transparent.]

* Source: Principles by Ray Dalio