Do you want to be skinnier, richer or simply more productive, yet find yourself unable to achieve even one of these goals? Perhaps you have tried over and over again to hop on that treadmill, get that promotion or wake up at 5am, yet, each time, you find an excuse, a reason to call in sick or hit the snooze button, and sabotage your own success?
Each of us has a list – whether physical or mental – of the goals we want to achieve in life. It may include purchasing our own home, losing ten kilos, or turning our side hustle into our full-time career or perhaps even all three. We may work tirelessly every day to achieve these goals yet struggle to tick off even one. And just why is that when we are working so hard? Could it be that we are trying to achieve too much with too little focus?
Indeed, the Pareto Principle states that 20% of our activities will account for 80% of our results. Put simply, this means that the majority of our efforts yield little results. So, could we succeed in transforming our lives forever if we were to just simply narrow our focus?
What is the Pareto Principle?
The Pareto Principle specifies that 80% of our results comes from 20% of our input and is otherwise known as the 80/20 rule. The Pareto Principle is not a law but an observation, made by the Italian economist Vilfredo Pareto, that so happens to show that most things in life are not distributed evenly.
Pareto first took note of this phenomenon when picking peas in his garden. When strolling through his garden he observed that 20% of the pea plants generated 80% of the peas. After this curious finding spiked his interest in economic output, he then took a look at the land ownership in Italy at the time, and also noticed that 80% of the land was owned by 20% of the population.
He went on to discover that the Pareto Principle can be broadly applied to nearly all industries, societies, companies, and even on a personal level. Understanding the Pareto Principle is essential in learning how to apply it to your own life to finally achieve your goals and live the life you want. So, just how does the Pareto Principle actually work?
How does the Pareto Principle work?
The Pareto Principle fits sneakily into all aspects of life. If we are to apply it to our own, it is most relevant to consider how it can help us to manage our time and productivity and achieve our goals. For instance, if we were to write a list of ten goals we would like to achieve in the next year, the Pareto Principle would help us by informing us that by focusing on only two of those ten goals we would actually achieve the biggest transformation in our lives. Although, this may feel counter-intuitive, and you may worry about how you will complete the other eight goals on the your list, by applying the Pareto Principle in this way, you will finally give yourself the means to stick to your goals and transform your life for the better. Indeed, did you know that even within a business, it is only 20% of the employees that account for 80% of the productivity? Or that 20% of the customers bring in 80% of the profit? The application of the Pareto Principle is so powerful that even Microsoft have reported that by fixing the top 20% of the most reported software bugs, they literally eliminated 80% of the problems.
How can I use the Pareto Principle to transform my life?
So, with such precise power, just how exactly can you use the Pareto Principle to transform your own life? Put simply, you need to limit your focus. If 20% of your efforts are going to yield 80% of your achievements, then it’s time to done in on what’s most meaningful to you to get maximum results. You can use the Pareto Principle to transform your life in a myriad of ways, from your finances to your relationships. By applying the 80/20 rule to all aspects of your life you can begin living the life you want. Below are three ways to get started today.
Step 1. Prioritise your to-do list
So, you have a to-do list. Perhaps there are ten items on this list, and you are feeling overwhelmed. You don’t know where to start and it’s all beginning to feel a bit too much. As a result, you may want to start with the easiest tasks or eliminate the “quick wins” first. However, if we put into practice the 80/20 rule, we need only take a moment to ask ourselves; “If I could only achieve one of the goals on this list, which one would have the most positive effect on my life?”
By asking yourself this question, and then choosing the goal which will create the biggest results, you are applying the Pareto Principle and focusing on the task which will create the largest benefit to your life. Do this again and choose the second task which will benefit you the most and you will have determined the 20 percent of your goals that will transform your life for the better. Continue to focus on these two goals and let the results speak for themselves.
Step 2. Get rid of the excess
You take a look around your apartment, you notice clutter and mess. You take a look in the mirror; you notice those extra few pounds you put on over the holidays still clinging to you. You take a look in your fridge and notice last night’s takeaway and a freezer full of frozen pizzas. You check your calendar and notice upcoming social events you technically don’t have time for with people whose company you don’t particularly enjoy. Then you wonder, how are you ever going to transform your life with all this baggage?
By applying the Pareto Principle to each of these scenarios, you can quickly and easily solve each dilemma. For instance, did you know that you wear 20% of your clothes 80% of the time? A simple way to declutter and get rid of the mess in your apartment once and for all is to simply take note of the 20% of your clothes that you wear the majority of the time and give the rest away. Similarly, you eat the same 20% of foods, 80% of the time. To finally keep that excess weight off, eliminate these foods from your diet and replace them with healthier options.
You may also notice that 20% of your relationships give you 80% of the fulfilment and by applying the Pareto Principle, you may choose to spend more time with this 20% rather than the 80% who only provide you with 20% of your fulfilment. This will also allow you to have deeper, more meaningful relationships with a select few friends rather than many distant relationships.
Indeed, through applying the 80/20 rule and focusing in on these many important aspects of your life, you are creating a life of your conscious choosing and transforming it for the better.
Step 3. Budget accordingly
As you stare dismally at your empty savings account and dream of that holiday, car or house on your to-do list, instead of imagining all of the takeaway coffees and Deliveroo orders you will have to go without to make it happen, apply the 80/20 rule to your spending instead. For most of us, 80% of our spending goes on rent, bills and essentials like food, travel and childcare costs. By cutting down on these, you will make a much bigger contribution to your savings account than by trying to save the remaining 20% of our spending.
For instance, if you have a net income of $3000 a month, and $2,400 of that goes on essential spending, it is much easier to save $300 a month by cutting back on the $2,400 a month you spend on rent, groceries, etc, than the $600 you may spend on socialising and hobbies. Simply choosing a cheaper place to live or renting out a spare room in your home can make a huge difference to your savings account and still allow you to indulge in your favourite speciality coffee and achieve your dreams of travelling Europe this summer or buying your first home.
By applying the Pareto Principle to these various aspects of your life, you can easily achieve your dreams and transform your life. All you have to do is take the time to see where you need to put your focus, and the Pareto Principle will do the rest of the work for you. Indeed, by choosing where you put your focus wisely, and identifying the 20% of activities that produce 80% of your fulfilment in life, you will cut back on the things that waste your time, maximum your success and instantly transform your life.
