According to the Pareto Principle, 20% of all activities produce 80% of all results. To put it in another way, people tend to expend 80% of our efforts on activities that have minimal effects on the results. The Pareto Principle can be validated by looking at many of your past successes that you are most proud of. In hindsight, it seemed so easy because we focused on the right or the best 20% of the activities, whether it was expertise, guidance or sheer luck on how things fell into place. People who are focused on activities that produce results are those who have created goals and plans and follow these plans while making minor adjustments to them. Who has time for goals? We’ll get back to that in a minute. Here’s another question: Who even has the time to read all of the content that lands in your feed? Believe it or not, you are utilizing the 80/20 rule as you purposely filter things out. We tend to filter out 80% of the online content that require thought, learning or reflection and head right to the 20% that the reader finds entertaining. If it was a choice between entertainment or learning and applying a new skill, most people go right for the entertainment.
Let’s get back to the Pareto Principle more commonly called The 80/20 rule. Let’s apply the 80/20 rule to an area of interest in this blog, personal finance and setting goals. Goal setting really sucks when you have to start with a blank sheet of paper, doesn’t it? What if we provided you 20 turn-key goals that you can call your own? Wouldn’t that be easy? Let’s take it one step further, and say instead of goals, let’s call them Rules. Rules? Really? Yes, because it assigns a little more accountability. Remember earlier, I mentioned about past successes and how easy they seemed after the fact because you focused on the right 20%, now let’s apply that to the 20 Rules of Personal Finance. Everything you need to know about Personal Finance is covered in these 20 rules. Actually it’s 100 Rules, and applying the 80/20 rule and magic of blogging, we’ll work these 20. Ben Carlson wrote an excellent blog that covers the rules that will give you the biggest bang for blog time. 80% of the rules hit home with me as I mastered these along my journey, unfortunately, I had to collect them along the way over several years. Here they are, all in one well written easy to follow blog. If you spend 20% of your goal setting time taking these rules into consideration, you will be well on your way to master 80% of your very own Personal Finance skills. These skills pay you personal dividends in the currency of more structure, profit and ease of use.
Take the time and take the risk and click the link to Ben’s blog. Save it and read through it after you’ve just finished paying a pile of bills. Jack Sparrow (Pirates of the Caribbean), called that “Leverage”. If you want the bottom line, go right to rule #20. Rules 1-19 will provide you the structure to sustain it long-term.
The beauty of blogs is that it filters 80% of noise not important to you so you can focus on the 20% that matters most to you. Read on and Carry On.