When I first heard of the 80/20 rule I thought it was a very interesting and somewhat accurate way in looking at how wealth is distributed or as a guideline on how to be more productive. Essentially, what it means from a money point of view is that 80% of the money in the world is made by 20% of the people. From a work perspective, 80% of the work and results, such as sales for a company, are achieved by 20% of the people in the organization. You can apply that concept in many different ways.
Apparently, the 80/20 rule way of thinking was originally established as an observation on how twenty percent of the population makes about eighty percent of the wealth which shows the type of balance there is when it comes to money and who controls it. While you obviously can’t use it for every single scenario, I think it is such a useful thought to keep in mind as you can apply it to a lot of everyday things which can make you think more effectively.
As an example, when it comes to facing a situation where you have so many problems and challenges, it’s easy to just go all over the place and start fixing the first thing that comes to mind. Instead, thinking about it where eighty percent of the problem or results is probably due to something very small in comparison helps you to think things more thoroughly to identify and fix the problem. Whether it’s money problems, trying to manage a business with employees or attempting to generate revenue, realizing that only a small portion of people or activities can have such a large impact on the end result sure makes you want to make smart decisions.
It can actually be a good motivational tool too as the way I see it, 20% of the people do the things that are necessary to get to where they are while 80% of the people simply do nothing and just wish they had the same thing. It takes small things to achieve big things. So if you don’t use it already, maybe this 80/20 rule can help you in many ways too.
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