What is Pareto Principle - The 80 20 Rule?

🎯 Goal

🙏 Jai Jinendra,

Are you curious about the Pareto Principle or the 80/20 rule? This principle asserts that 80% of your outcomes stem from just 20% of your inputs.

In this exceptional article, you'll discover:

The origin story of the 80/20 rule, as uncovered by an Italian man
Fascinating examples that illustrate the Pareto Principle in practice
Ways in which you can employ the Pareto Principle to cultivate strong relationships and enhance your productivity.

Discovery of Pareto Principle

In the late 19th century, an Italian economist named Vilfredo Pareto made a remarkable discovery, now known as the Pareto Principle or the 80/20 rule. While studying the distribution of wealth in Italy, Pareto observed that only 20% of the population owned 80% of the land.

Intrigued by this finding, Pareto went on to investigate other phenomena to determine if this ratio remained consistent. He examined income distribution and found that 80% of the income was earned by just 20% of the population. Pareto also analyzed population distribution and discovered that 80% of the people lived in only 20% of the cities. He even observed that in his garden, 20% of the pea pods produced 80% of the peas.

The pattern of 80/20 seemed to be a recurring theme in many areas of life, and Pareto's observations eventually led to the development of the Pareto Principle, which states that 80% of consequences stem from 20% of the causes.

Examples of Pareto Principle in Action

Below are several intriguing examples of Pareto Principle is Action:

80% of YouTube views are generated by just 20% of the videos.
Only 20% of clothes are worn 80% of the time.
80% of your happiness in life comes from just 20% of the people you know.
20% of the people in your life brings you 80% of Pain.
20% of your daily activities can significantly increase the likelihood of having a productive day
20% of your daily activities can significantly increase the likelihood of having a sluggish day

Pareto Principle in Your Life

We can provide you with five ways to apply the Pareto Principle in your life, but chances are you will forget them. Instead, we will focus on few simple ways related to relationships and productivity that you can apply and benefit from. These ways are:

Relationships:

Identify the 20% of people who bring you 80% of joy in your life and focus your time and attention on them.

For example, in Bheem's life, his mother, his friend Jagu, and his Kalaripayatu guru bring him 80% of joy. By focusing on spending more time with these people, Bheem can significantly increase his level of satisfaction.

Identify the 20% of people who bring you 80% of pain in your life and try to limit your interactions with them as much as possible.

For example, in Bheem's life, his roommate Kalia and his toxic co-worker Kechak bring him 80% of pain. By avoiding interactions with these people, Bheem can considerably reduce his pain.

Work Productivity:

Identify the 20% of daily activities that can significantly increase the likelihood of having a productive day.

For example, in Bheem's life, these activities may include

waking up at 6 am
sleeping by 10 pm
refraining from eating after sunset
keeping his work environment clean
having a basket of fruits nearby to prevent binge eating
keeping a water bottle and glass nearby
reading a book before sleeping

By focusing on these activities, Bheem can considerably his productivity.

Identify the 20% of daily activities that can significantly increase the likelihood of having a sluggish day.

For example, in Bheem's case, these activities may include

eating sugary drinks and foods
working after 8 pm
interacting with toxic people
wasting time on social media channels like YouTube, Twitter, Facebook, Quora, WhatsApp

By refraining from these activities, Bheem can avoid a sluggish day and stay productive.

Summary

The key takeaways from this article are as follows:

Sir Pareto from 🇮🇹 discovered Pareto Principle, which states that 80% of consequences are due to 20% of causes.
To improve your satisfaction, focus on the 20% of people who bring you joy.
To reduce your pain, avoid interacting with the 20% of people who bring you the most pain.
To enhance your productivity, focus on the 20% of activities that make you productive.
To avoid a sluggish day and stay productive, avoid the 20% of activities that make you sluggish.

Next Steps

To truly benefit from the knowledge you've gained, it's important to put it into practice. Here's a step-by-step guide to help you apply the Pareto Principle in your life:

Choose your preferred tool (such as a text file, Notepad, or a note-taking app) and answer the following questions:

Which 20% of people in your life bring you the most joy?
Which 20% of people in your life bring you the most pain?
Which 20% of activities can significantly increase your likelihood of having a productive day? (You can refer to Bheem's activities mentioned above for inspiration.)
Which 20% of activities can significantly increase your likelihood of having a sluggish day? (Again, Bheem's activities can serve as inspiration.)

Focus your attention on the 20% of people who bring you the most joy. Spend more time with them and deepen your relationships.
Stay away from the 20% of people who bring you the most pain to the best of your ability.
Incorporate the activities that make you most productive into your daily routine.
Avoid the activities that make you most lethargic.

Finally, let's thank Sir Pareto from 🇮🇹 for bringing the Pareto Principle to our attention and benefiting humanity to this day.

🙏 Dhanyawad 🙏

FAQs

What should I do if social media platforms such as YouTube, Twitter, Facebook, Quora, and WhatsApp are wasting my time?
If you find that social media platforms like YouTube, Twitter, Facebook, Quora, and WhatsApp are consuming too much of your time, you may want to try the following strategies for each app:
YouTube
- Use the BlockSite Chrome Extension to block youtube.com across all browsers on your PC or laptop.
- Due to Google’s Policies you can’t uninstall YouTube on Android Phones, so on your Phone Unrecommend channels that waste your time, such as those that talk about news and politics.
Twitter, Facebook
- Uninstall these apps from your phone since you generally don't need them.
Quora
- Use BlockSite to block quora.com on your laptop or PC.
WhatsApp
- Exit time-wasting groups. It may hurt someone's ego for a minute, but it will make you productive for a lifetime.
In addition, turn on grayscale mode on your phone to make it less appealing. If you still struggle with social media addiction, consider investing in a keypad phone, which can be a good investment and typically costs around 1500 to 2000.
Most importantly, don’t scroll from here and apply these strategies according to your intuition.
What can I do if my boss is among the 20% of people who bring me 80% of pain?
Working under a boss who causes you a lot of stress can make every day feel like a nightmare. Therefore, we strongly recommend that you consider the following options based on your intuition:
- Look for a new job role and switch to a less stressful work environment.
- Start freelancing on the side, and when your freelance income is stable enough, resign from your current job.
- Consider starting your own side business, and when your income is stable enough, resign from your current job.
- If you feel financially stable, you could consider freelancing full-time or starting your own business full time.
Most importantly, don’t scroll from here and apply these strategies according to your intuition.
Is the Pareto Principle, which states that 80% of consequences come from 20% of causes, always applicable?
While this principle is commonly observed in various fields, it may not always be applicable in all situations. The exact percentage may vary depending on the context, and the principle is not a hard and fast rule
Pareto Principle is just a useful framework for analysis and decision-making in many scenarios