The Three Principles: THOUGHT, CONSCIOUSNESS, MIND

Definition

The three principles are the fundamental source and basis of all human experience. THOUGHT is the reality principle—the capacity to generate perceptual reality, the countless thoughts and perceptions that arise moment to moment. CONSCIOUSNESS is the experience principle—the capacity to be aware of our THOUGHT-generated reality, bringing it to life as felt experience. MIND is the power principle—the intelligent energy that animates all life, the power source behind thinking and consciousness. These three principles work together to create 100% of our moment-to-moment experience.

In the Book

Smart grounds the three principles in Sydney Banks' sudden insight in 1974 and explains them through a computer metaphor. "THOUGHT is like the computer itself; there's nothing on the screen until you connect it to the computer. And just as the computer is the source of 100% of what shows up on the screen, THOUGHT is the source of 100% of the form of our experience." CONSCIOUSNESS is like the screen—you can have the best content in the world, but if the screen is off, you can't see it. MIND is like the power supply—without power, nothing works.

The book emphasizes that we cannot see or measure these principles directly because they are formless, much like gravity. But we can observe their effects. THOUGHT creates perceptual reality so completely that two people watching the same movie can have entirely different experiences. A person with a phobia uses THOUGHT to create the experience of imminent danger despite no objective threat. Someone can create a richly enjoyable experience anticipating a cancelled holiday—the THOUGHT-generated experience was real even though the holiday won't happen. CONSCIOUSNESS brings all of this to life as felt experience.

Smart identifies understanding the principles as a massive source of leverage: "When you understand the principles behind something, it increases your power exponentially." He compares this to the Wright brothers discovering the principles of aeronautics—once discovered, entirely new possibilities emerged.

Why It Matters

Understanding that experience is generated by these universal principles rather than by circumstances shifts responsibility and power inward. It explains why the same circumstance produces different experiences in different people, and why circumstances alone can never be the source of sustained wellbeing. These principles are constant and universal—there are no exceptions—making them reliable foundations for understanding all human behavior and change. This is what gives the inside-out understanding its power.