#023: My Other Favorite Golden Rule Ever
The Golden Rule of life is “treat others the way you want to be treated…”
That’s definitely true. BUT…
It’s not the rule I’m talking about today.
This one is different.
It was discovered by an Italian economist named Vilfredo Pareto back in 1906 and then made popular by Richard Koch in 1997.
Today we’re talking about the Pareto Principle, also known as the 80/20 Rule.
Everywhere you look… you’ll realize an imbalance in inputs and outputs. What I mean is that 80% of all results come from about 20% of all actions.
Let me explain...
Everything in the world is subject to the 80/20 Rule.
In 1906, while studying the economics of Italy, Pareto realized that 80% of the wealth was held by 20% of the population.
He walked outside his house that next weekend and had a theory… “This 80/20 distribution extends far beyond wealth.”
He looked down at his garden and quickly realized that 20% of his pea pods were responsible for 80% of his peas.
He was astonished and began to see it everywhere..
20% of freeways get 80% of the traffic.
20% of customers make 80% of the purchases.
20% runners win 80% of the races.
20% of the exercises build 80% of the muscles.
In the 1990s, famous entrepreneur Richard Koch stumbled on to this discovery and it radically changed his life.
He went from being a consulting manager working 60-70 hours a week to an author and investor now worth over $400 million.
He truly believes “less is more” so long as the less is the right work.
He created a 3-step framework to achieving any goal:
Step 1: The 80/20 Destination - where you want to be
Step 2: The 80/20 Route - the easiest way to the destination
Step 3: The 80/20 Actions - the first key steps
Follow the steps in this simple order and you’ll quickly achieve your goal.
I wrote this to interest you enough to do your own research to see how this can help you.
What can you apply the 80/20 Rule to in your life?