What does Steve Jobs mean by “connecting the dots backwards”?

Quote:

You can’t connect the dots looking forward; you can only connect them looking backward.

Author/Who said it:

Steve Jobs

When:

Stanford 2005 Commencement speech

Meaning/What does it mean:

Steve Jobs is encouraging people to live like your life is connected by a purpose (karma, faith etc). At the end of your life you can connect the dots backwards and see what your path was like. Without the confidence to live without fear, you will never achieve what you want to become.

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