The 80/20 Rule is the Secret to All of your Problems

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  • pareto-principle300In case you haven’t heard of the 80/20 Rule, or the Pareto Principle, it’s a commonly-accepted theory in business management. It states that 80% of results come from 20% of your efforts. The idea is based on the work of Vilfredo Pareto, an 18th-century mathematician who observed that 80% of the land in Italy was owned by 20% of the population and that nature tended to reflect this distribution: 20% of the plants in his garden were producing 80% of the produce.

    The 80/20 Rule and the way of thinking it prescribes could help you in managing your own life: most people are not actually disturbed by all of the things affecting their lives. We usually choose the things which trouble us the most. 20% of our problems cause us 80% of our stress. If you can identify the 20% and resolve them, you’ve achieved a lot without wasting much time.

    For business theory, many employers adopt 80/20 Rule thinking, realizing that 20% of an individual’s work will create 80% of his or her profit and, likewise, 20% of a company’s staff will create 80% of its success. On the flipside, 20% of a company’s employees can cause 80% of staff-related problems.

    The lesson to be learned is that you don’t need to drastically reinvent your entire life in order to see a change and improvement – just find the 20%.

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    Mark Valley

    Mark's obsession with how to save money and "hacking" the latest financial trends started during his university degree in business finance when he earned enough money with his radical ideas to finance his studies. He has since written numerous publications on this subject matter and his relentless drive for finding the ultimate "freebie" will be shared on our site with the sole purpose of saving you a lot of money.

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