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Ray Dalio is the founder, Co-Chairman and Co-Chief Investment Officer of Bridgewater Associates, one of the world's largest and most successful investment firms that is famous for the principles of radical truth and transparency that underlie its culture. Ray is one of the wealthiest people in the world, with ideas that extend far beyond the specifics of how he made that wealth. His ideas, applicable to everyone, are brilliantly summarized in his book Principles.

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You're, if I may say so, 1 of the richest people in the world, so you're a good person to ask, does money buy happiness?

No, it's been shown that once you get over a basic level of income so that you can take care of the pain, you know, you can, health and whatever, there's no correlation between the level of happiness that 1 has and the level of money that 1 has.

That thing that has the highest correlation is quality relationships with others' community.

If you look at surveys of these things across all surveys in all societies, it's a sense of community and interpersonal relationships.

That is not in any way correlated with money.

You can go down to native tribes in very poor places, or you can go in all different communities.

And so they have the opportunity to have that.

I'm very lucky in that I started with nothing.

I can tell you, I, you know, not having money, but, and then having quite a lot of money.

And I, you know, I did that in the right order.

And my dad was a jazz musician, but I, but I had all really that I needed because I had 2 parents who loved me and took good care of me.

And basically, you know, that you, you don't need much more than that in order to, that's the equal opportunity part.

Anyway, what I'm saying is, I experienced the range and there are many studies on the answer to your question.

Money gives you an ability to make choices.

Does it get in the way in any way of forming those deep meaningful relationships?

There are lots of ways that it makes negative.

But I could almost list the ways that it could stand, it could be a problem.

At the most fundamental level, it doesn't take a whole lot, but it takes enough, that you can take care of yourself and your family to be able to learn, do the basics, have the relationships, have healthcare, the basics of those types of things.

And then to have maybe enough security, but maybe not too much security.

And you don't, that's what money will get you.

And everything else is, could go either way.

Okay, then beyond that, what it then starts to do, that's the most important thing.

But beyond that, what it starts to do is to help to make your dreams happen in various ways.

Okay, so for example, now I, you know, like in my case, those dreams might not be just my own dreams, they're impact on others dreams, okay?

So my own dreams might be, I don't know, I can pass along these, at my stage in life, I can pass along these principles to you and I can give those things, or I can do whatever, I can go on an adventure, I can start a business, I can do those other things, be productive.

I can self-actualize in ways that might be not possible otherwise.

I mean this is, to the extent when you get older and with time and whatever, You start to feel connected, spirituality, that's what I'm referring to.

You can start to have an effect on others that's beneficial and so on.

I could tell you that people who are very wealthy who have that feel that they don't have enough money.

Bill Gates will feel almost broke because relative to the things he'd like to accomplish through the Gates Foundation and things like that, you know, oh my God, he doesn't have enough money to accomplish the things he wishes for.

But those things are not, you know, they're not the most fundamental things.

So I think that people sometimes think money has value.

The money is like you say, just a medium of exchange at a store, although well, And so what you have to say is, what is it that you're going to buy?

Now there are other people who get their gratification in ways that are different from me, but I think in many cases, let's say somebody who used money to have a status symbol.

What would I say, or that's probably unhealthy.

But then, I don't know, somebody who says, I love a great, gorgeous painting, and it's gonna cost lots of money.

But that doesn't mean, who am I to judge others in terms of let's say their element of the freedom to do those things.

But by and large, that's my view on money and wealth.


Speaker 0: You're, if I may say so, 1 of the richest people in the world, so you're a good person to ask, does money buy happiness?

Speaker 1: No, it's been shown that once you get over a basic level of income so that you can take care of the pain, you know, you can, health and whatever, there's no correlation between the level of happiness that 1 has and the level of money that 1 has. That thing that has the highest correlation is quality relationships with others' community. If you look at surveys of these things across all surveys in all societies, it's a sense of community and interpersonal relationships. That is not in any way correlated with money. You can go down to native tribes in very poor places, or you can go in all different communities.

And so they have the opportunity to have that. I'm very lucky in that I started with nothing. So I had the full range. I can tell you, I, you know, not having money, but, and then having quite a lot of money. And I, you know, I did that in the right order.

Speaker 0: So you started from nothing

Speaker 1: in Long Island. Yeah. And my dad was a jazz musician, but I, but I had all really that I needed because I had 2 parents who loved me and took good care of me. And I went to a public school. That was a good public school.

And basically, you know, that you, you don't need much more than that in order to, that's the equal opportunity part. Anyway, what I'm saying is, I experienced the range and there are many studies on the answer to your question. No money does not bring happiness. Money gives you an ability to make choices.

Speaker 0: Does it get in the way in any way of forming those deep meaningful relationships?

Speaker 1: It can. There are lots of ways that it makes negative. That's 1 of them. It could stand in the way of that. Yes, okay.

But I could almost list the ways that it could stand, it could be a problem.

Speaker 0: Yeah. What does it buy? So if you can elaborate, you mentioned

Speaker 1: a bit of freedom. At the most fundamental level, it doesn't take a whole lot, but it takes enough, that you can take care of yourself and your family to be able to learn, do the basics, have the relationships, have healthcare, the basics of those types of things. You know, you can cover the patients. And then to have maybe enough security, but maybe not too much security.

Speaker 0: That's right.

Speaker 1: That you essentially are okay. Okay, that's really good. And you don't, that's what money will get you.

Speaker 0: And everything else is, could go either way. Well, no,

Speaker 1: there's more. There's more. Okay, then beyond that, what it then starts to do, that's the most important thing. But beyond that, what it starts to do is to help to make your dreams happen in various ways. Okay, so for example, now I, you know, like in my case, those dreams might not be just my own dreams, they're impact on others dreams, okay?

So my own dreams might be, I don't know, I can pass along these, at my stage in life, I can pass along these principles to you and I can give those things, or I can do whatever, I can go on an adventure, I can start a business, I can do those other things, be productive. I can self-actualize in ways that might be not possible otherwise. That's my own belief. And I can also help others. I mean this is, to the extent when you get older and with time and whatever, You start to feel connected, spirituality, that's what I'm referring to.

You can start to have an effect on others that's beneficial and so on. Gives you the ability. I could tell you that people who are very wealthy who have that feel that they don't have enough money. Bill Gates will feel almost broke because relative to the things he'd like to accomplish through the Gates Foundation and things like that, you know, oh my God, he doesn't have enough money to accomplish the things he wishes for. But those things are not, you know, they're not the most fundamental things.

So I think that people sometimes think money has value. Money doesn't have value. The money is like you say, just a medium of exchange at a store, although well, And so what you have to say is, what is it that you're going to buy? Now there are other people who get their gratification in ways that are different from me, but I think in many cases, let's say somebody who used money to have a status symbol. What would I say, or that's probably unhealthy.

But then, I don't know, somebody who says, I love a great, gorgeous painting, and it's gonna cost lots of money. In my priorities, I can't get there. But that doesn't mean, who am I to judge others in terms of let's say their element of the freedom to do those things. So it's a little bit complicated. But by and large, that's my view on money and wealth.

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Ray Dalio: Can Money Buy Happiness? | AI Podcast Clips