First Principles Thinking helps you break down complex problems into fundamental truths instead of relying on assumptions. Learn how to apply this mental model in decision-making, problem-solving, and business innovation.
First Principles Thinking is about breaking down problems to their fundamental truths and rebuilding solutions from scratch rather than relying on assumptions, analogies, or conventional wisdom.
Instead of asking what has been done before, ask what are the essential facts that must be true. This method, famously used by Elon Musk, allows for better reasoning, deeper insights, and breakthrough innovation.
When to use it:
When solving complex problems and removing outdated assumptions
When creating new products or business models from scratch
When making high-stakes decisions where conventional thinking doesn’t work
When evaluating common industry practices and asking if they still make sense
How to apply it:
Identify assumptions → What do people typically believe about this problem?
Break it down to fundamentals → What are the irreducible truths that don’t depend on opinion?
Rebuild from scratch → Based on first principles, what’s the best possible solution?
Examples:
1. SpaceX: Lowering Rocket Costs
Traditional thinking: Rockets are expensive because they’re single-use
First principles thinking: What are rockets fundamentally made of? (Aluminum, titanium, fuel, etc.)
Solution: If we reuse rockets like airplanes, the cost drops dramatically → SpaceX succeeds
2. Electric Cars (Tesla)
Traditional thinking: Batteries are expensive, so EVs must be costly
First principles thinking: A battery is just a mix of nickel, lithium, and carbon. How can we optimize costs at the chemical level?
Solution: Tesla innovates battery supply chains to reduce costs
3. Business & Career Growth
Traditional thinking: To succeed in a career, follow a predefined path (degree → job → promotion)
First principles thinking: Success is about skills, value creation, and problem-solving, not just formal education
Solution: Many entrepreneurs, coders, and creators self-educate and build projects instead of following a rigid path
4. Cooking & Nutrition
Traditional thinking: Cooking at home is difficult and time-consuming.
First principles thinking: Cooking is just combining raw ingredients in the right way.
Solution: Learn a few basic cooking techniques and batch-prep meals to save time instead of relying on expensive or unhealthy takeout.
5. Education & Learning
Traditional thinking: You need a college degree to gain expertise.
First principles thinking: Learning is about acquiring knowledge and skills, not necessarily attending formal education.
Solution: Use self-learning resources like books, online courses, and mentorship to gain expertise in any field.
6. Socializing & Making Friends
Traditional thinking: You need to be outgoing to make friends.
First principles thinking: Friendships are built on shared interests and repeated interactions.
Solution: Join groups or activities that align with your interests and create opportunities for regular engagement, rather than forcing extroverted behavior.
7. Exercise & Fitness
Traditional thinking: You need a gym membership to stay fit.
First principles thinking: Fitness is about consistent movement and strength, not necessarily equipment.
Solution: Use bodyweight exercises, walking, and simple home workouts to stay active without relying on a gym.
8. Overcoming Fear of Public Speaking
Traditional thinking: Great speakers are naturally confident and charismatic.
First principles thinking: Public speaking is a skill that can be practiced and improved.
Solution: Start small by speaking in low-pressure environments, record and review your speech, and use structured frameworks to build confidence.
9. Parenting & Teaching Kids
Traditional thinking: Kids learn best through structured lessons.
First principles thinking: Children learn through curiosity and engagement, not just formal teaching.
Solution: Encourage learning through exploration, hands-on activities, and storytelling instead of just relying on textbooks.
10. Sleeping Better
Traditional thinking: More sleep equals better rest.
First principles thinking: Sleep quality matters more than just the number of hours.
Solution: Optimize sleep by reducing screen time before bed, maintaining a consistent schedule, and improving sleep environment rather than just sleeping longer.
11. Productivity & Focus
Traditional thinking: Multitasking helps you get more done.
First principles thinking: The brain focuses best on one task at a time.
Solution: Use deep work strategies, block distractions, and focus on single-tasking to improve efficiency.
Key Takeaway:
Instead of accepting conventional wisdom, question assumptions and rebuild your understanding from the ground up.
Always ask: what do I know for sure, and what am I just assuming?
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