THE 80/20 PRINCIPLE
THE PRINCIPLE TO RUN YOUR LIFE ON
HOW CAN 20% = 80%?
20% = 80%.
How is that possible?
All activities one does vary in how great the results are. A scientist discovered the law that points out that the most productive people and areas of effort produce a huge amount of results. While the remaining people/areas produce very little.
Pareto (in the mid 1800’s) found that 80% of income in Italy went to 20% of the population, which meant that the other 80% of the population only gets 20% of the income. In business, testing for how this principle is true, they “discovered” that 80% of a company’s sales are from 20% of the customers.
Applying this to life, it means that if we carefully select the 20% of the activities that are the most impactful we will get 80% of the results. The least impactful 80% will get only 20% of the results.
SO, WHAT DOES THIS MEAN?
So, where should we spend our time first and foremost?
Well, of course, there is only one choice.
Our first priority would be to implement the 80/20 rule in our lives!!!!!!!
This would be the most important thing to do in our lives!!!!!! (Could this be more clear?)
By doing this we will have mastered doing our “multiplication tables” in life, instead of just adding one thing at a time and plodding along in life, spending a lot of effort for not much in results, living a much harder life than we need to.
In this case, though, we’re applying this to our lives when it is ordinarily applied to business. But doesn’t it make total sense to run our lives that way, with us determining the “value” of the results we want?
Using the 80/20 principle to focus your energies toward what makes the highest impact, you can be paid in life like the top executive who earns 1,000 times more income than a regular worker. (See the answer to how this is done in the Q & A at the end.)
You can live a life that is simpler, with plenty of spare time, being 10-100 times happier, non-stressed, confident, and free.
Q & A. Questions and answers on how this works.
Q1. How can top executives get 1,000 times more income than a regular worker?
Because they focused on developing the most important skills to produce the most important (greatest) results. Essentially, they figured out the 20% that was most productive, then figured out the 20% of that 20% that was the most productive, and then repeated the process until they could actually produce dramatically more results, honing those 80/20 skills more as they went.
The process formula
Level 1. We figure out how to only do the vital 20%. We produce 4 times what regular people do.
Level 2. We figure out how to do the top 20% of the above 20%. We produce 4 times 4 times what others do – or 16 times what regular people do.
Level 3. We figure out how to do the top 20% of the top 20 of the top 20%. We produce 4 times of what Level 2 does – or 64 times what regular people do.
Level 4. 4 x 64 = 256
Level 5. 4 x 256 = 1,024
Note: If a person does 100% of the activities available and gets 100% of the results, that is a 1 to 1 ratio. If a person only does the 20% activities which each produce 80% of the results and the person only does that, then 100% (5 times 20%) produces 400% (5 times 80%).
Q2. How can I apply this in my life?
Then do them.
Clearly figuring out what is most impactful is the top most activity in terms of impact, so it is clearly the most worth doing.
See www.live8020.com to see what an 80/20 person does and how to live an 80/20 life – one that is easier, happier, and, yet, more effective and productive.