posted by Shelley
I’m reading a book by Timothy Ferriss called the 4-Hour Workweek. The tagline (and the fact my brother recommended it) is what got me – it reads, “Escape 9-5, live anywhere and join the new rich.” Ok, it’s cold in Indiana (13 degrees this morning), I only wish I could work from 9-5 and who doesn’t want to be rich? I certainly don’t buy into all the concepts within this book, but find it to be filled with great thoughts, tips and ideas.
Reading it has got me thinking quite a bit about the 80-20 Rule. The 80-20 Rule is the Pareto principle and it states that 80% of the effects comes from 20% of the causes. It isn’t new. But think about it for a moment. No, really let it sink in – and apply it to not only your business, but to your personal life as well. I was sold on the 80-20 concept at the end of my workday yesterday when I looked at my to-do list. I spent 80% of my day fighting fires and completed 20% of the items on my list. Sound familiar?
In business, 80% of the consequences flow from 20% of the causes; 80% of the results come from 20% of the effort and time; and 80% of your profits come from 20% of your products and customers. In personal relationships, I would bet that 80% of your problems stem from 20% of the issues you deal with everyday. Would I be right? Soooo….what 20% of the sources in your life result in 80% of your happiness?
I think that if you apply this rule to your life (and your business), it will help bring clarity to the things that are important and those that, at the end of the day, really don’t matter. If you can pinpoint the 20% of your inputs that result in 80% of your outputs – you can start finding ways to eliminate the other 80%. And more importantly, as you eliminate that nasty 80%, you’ll have more time to work on that 20% of the sources that result in 80% of your happiness.