Legend has it that Italian engineer Vilfredo Pareto noticed something peculiar about the peas growing in his garden. Vilfredo recognized that approximately 20% of his pea plants were yielding 80% of the pea crop.
What is the 80/20 Rule
Simply put, the 80-20 rule states that 80% of your outcomes (outputs) come from 20% of causes (inputs). Using the pea example, 80% of the peas eaten from the garden came from 20% of the plants.
Benefits of The 80/20 Rule
There always seems to be a trade-off in life, so introducing a new philosophy to how you operate makes it ok to be a little hesitant. The 80/20 rule typically leads to better results in the areas of:
– Time management
– Efficiency & productivity
– Fixing financial issues
The benefit of the 80/20 rule is essential for utilizing company funds correctly, making strategic decisions at work, and also how you spend time and money in your personal life! For example, perhaps you get a part-time job because you need more money.
Have you ever heard the sentiment that hitting your health goals boils down to your eating habits? In fact, you may have heard that the key to getting a six-pack abdomen is an 80% diet (hmm, wonder where this comes from).
Business, Wealth & Investing
In essence, the concept is very simple, spend 80% of your money on things you need, enjoy, and bills – just make sure you’re paying yourself first with the other 20%! Wonder where the concept of the 80/20 budget came from?
You are who you associate with, for better or worse. The 80-20 rule is a great way to distance yourself from toxic relationships and increase time with those positive relationships you truly enjoy.
Most people have to break their bad habits before they can start seeing the results they covet in their lives. What better way to do this than to apply the 80/20 rule to your daily habits!
Even though we mostly think we are in control of our lives, it is estimated that almost half of what we do is on autopilot. Nearly 45 of what you do daily is the result of habit – for better or worse.
How does the 80/20 rule work?
80% of your outcomes (outputs) come from 20% of causes (inputs). A classic example of this is that 80% of work is done by 20% of employees. The 80/20 rule makes it easier to make choices, decide where to spend time, energy, and money.