80/20 Rule ,HOW TO TAKE ADVANTAGE OF IT
The 80/20 rule is one of the most helpful concepts for life and time management.
Here’s what the Wikipedia has to say about it:
The Pareto principle (also known as the 80/20 rule) states that, for many events, roughly 80% of the effects come from 20% of the causes.
Understanding the 80-20 Rule
A principle of the 80-20 rule is to identify an entity’s best assets and use them efficiently to create maximum value.
This rule is also known as the Pareto Principle It was first discovered by Italian economist Vilfredo Pareto. He observed that 20% people held 80% of the total wealth.
We can take Pareto’s 80 20 rule and apply it to almost any situation. Understanding the principle is essential to learning how to prioritize your tasks.
And then he kept observing the same pattern everywhere else:
The richest 20% people in the world have 80% of worlds income.
20% of the sales reps generate 80% of total sales.
20% of customers contribute 80% of revenue
How You Can Use It
So how can you apply Pareto’s principle to gain more time in your life?
The sad fact is that most people procrastinate on the top 20 percent of items that are the most valuable and important, and busy themselves instead with the least important 80 percent, that contribute very little to their success.
By focusing on activities that produce the most results and eliminating or outsourcing trivial activities, you can free more of your time while accomplishing more.
No matter what your situation, it’s important to remember that Pareto can help you to achieve your goals(if you apply the principle); otherwise, you’d be a slave to a never-ending list of things to do.
80/20 Rule in Business
When using the 80/20 in your business, it’s all about figuring out where you are most effective, and then concentrating on those areas.
Most of your business is taken care of by a small minority of your employees. If your most productive employees are part of the 20 percent that monopolizes your time, then you’re using your time wisely.
The reality is that you are probably more productive if you concentrate on the more important items that may feel like a small part of your business, but still accounts for generating most of your positive results.
When applied to sales, the 80/20 rule means not only that 80 percent of your sales will come from 20 percent of your customers but also that 80 percent will come from 20 percent of your sales force.
80/20 Rule in Relationships
The 80 20 rule in relationships could seem confusing at first. But understanding this concept can help you change your relationship for the better.
Knowing which friends bring you joy, enjoy spending time with and truly care about you, you can shift the time spent on certain relationships. Which 20% of your relationships give you 80% of your happiness? How can you increase your time on these 20% relationships to get more out of them?
80/20 Rule in Health
You know you can achieve a healthy lifestyle when the majority of your choices are healthy.
A healthy lifestyle is achieved by the sum total of all of your choices. Losing weight, getting healthier or becoming more fit is not a quick fix ,it’s the culmination of your habits and your daily decisions.
Whether you want to burn fat, build muscle or control cardio, you only need a couple of set exercises.
20% of the food you eat damages 80% of your energy
80% of your muscle gains come from 20% of the effort.