The 80/20 Rule

The 80/20 Rule is also known as the Pareto Principle.

Herman Ostry’s barn floor was under twenty-nine inches of water after a flood. He needed a miracle – and fast – to salvage his barn and be ready for winter. He needed to move his entire 17000 pound barn to a new foundation more than 143 feet away. His son Mike, devised a lattice work of steel tubing. He nailed, bolted and welded the lattice on the inside and outside of the barn with hundreds of handles attached.

The 80/20 Rule is also known as the Pareto Principle. This states that 80% of the outcome is derived from 20% of the cause. This helps identify which factor is most impactful in many situations such as business and productivity. The principle was originally discovered in 1906 by Italian Sociologist and Economist Vilfredo Pareto. It was in 1941 that Joseph M. Juran wrote about the concept discovered by Pareto. He was a management consultant and put it all in context of quality control. Thus, worldwide, it became known as the Pareto Principle. It pretty much works this way in everything. 20% of the people in church give 80% of the money. 80% give 20% of the money. 20% of the crops provide 80% of the yield and vice versa. 20% of the employees produce 80% of the results and so on…

I am always baffled by how people have not been able to see it how health and fitness is about calorie control. It Isn’t so much what you eat as it is how much you eat. Don’t get me wrong if all you eat is sugary foods you will not be providing your body with what it needs to produce muscle and burn fat. It is however, important not to be a part of the “clean plate” club. Also remember it is important to exercise as this is good for your cardiovascular health but you do not need to be a body builder to stay healthy. You need to eat the right foods and the right amount. Keep your focus on 80% of what you eat and 20% of how much you exercise.

Napoleon Hill speaks of Hypnotic Rhythm as being that which leads people down the path of drifting in one direction or another away from their goals and that which will bring them what they seek. Today, our word for Hypnotic Rhythm is Habit. Our habits are what will make or break our ability to accomplish our goals. Knowing your income, knowing your percentages is all good but developing a habit of ensuring the percentages you have worked out in order be able to have enough to retire on is about habit. The habit of saving and allowing your dollar to become your best employee. Make sure your habits line up with the 80/20 rule.

Most everyone has a desire to improve but few have the tenacity to discipline themselves to do what it takes to improve. If you are one of those with the tenacity, I commend you. If you are not, I encourage you to start today on little disciplines and continue until you are doing those larger disciplines necessary to improve. Yes, you need ideas, but you must persist in working those ideas into a plan and working the plan to its fruition. This is what Bill Gates, Steve Jobs, Jeff Bezos and other successful people have done and you can as well. These and many others put 80% of their time in making it happen not in simply coming up with ideas. Many people come up with ideas and want you to help them carry them out but not willing to do it on their own. As you grow older and you find yourself with a little money, you will also find dozens of people coming to you with their ideas they want you to fund and make happen. Stay focused
on your own…

Learning is the foundation of it all BUT gathering knowledge isn’t enough to become successful at what you may want to achieve. Many people can gather knowledge but what have they become? Unless knowledge is converted to wisdom, nothing will be correctly applied and thus nothing will be achieved. This is what understanding is all about. Again, many can read books and gather knowledge but that does not mean they can walk, talk and chew gum at the same time. I have had several PhD’s work for me that were unable to do some of the simplest things. They had no common sense even though they had a very high IQ. Once you have understanding, you can apply what you know toward achieving and accomplishment. Many with PhD’s would not even start down the road the majority of entrepreneurs would because their learning would tell them they didn’t have what it would take to make it. The real entrepreneur would not take no for an answer. They would find a way. Will YOU? So, read yes, but make it 20% of your daytime goal while learning how to apply that which you already know.

Purpose is essential to a life of fulfillment and happiness. It is essential in that it will fill you with the drive needed to rise every day and work toward making it happen. It is essential as it keeps you engaged with life and those around you. Even if it is only for the purpose of spoiling your grandchildren, it will be enough to keep you focused and excited about life. It will make you want to live another day and be in the lives of those you love. If you are wondering right now what is my purpose, perhaps you don’t have one. If not, find one. It may be donating time or energy toward helping others either on your own or through a nonprofit. It may be speaking with the younger generation and sharing what you have learned and what to avoid. Purpose will keep you younger. It will keep you vibrant. It will keep you engaged. It is true 80% purpose will cut down on your fun time but you will find the fun time much more fulfilling than seeking it 80% of the time.

Relationships are also essential if one is to have a life of fulfillment. Your comment might be, “Well I don’t have any friends.” Are you friendly? Again, based on the Pareto Principle, you need to be giving to those around you 80% of the time rather than receiving. Sadly, many do not do this. They are waiting for those around them to reach out to them when it should be the other way around. If you want friends, be friendly and do it 80% of the time. You will find if you begin to live like this the receiving will follow. The Bible is clear on the fact we need to give in order to receive. It says in Acts 20:35, “It is more blessed to give than to receive.” In Luke 6:38 it says, “Give and it will be given unto you.” Proverbs 11:24-25 says, “ One person gives freely, yet gains more; another withholds unduly, but comes to poverty. A generous person will prosper; whoever refreshes others will be refreshed.” These are powerful and let us know we must take the initiative. We must do something first if something is going to come back to us. On this planet everything works by the seed sowing principle. You sew first and then you reap. This goes for friendship or money. Be a giver. Learn to plant first knowing a harvest will be yours.

There is a huge difference between achieving and dreaming. We have all talked to dreamers or maybe we are the dreamers. What is important is becoming an achiever. In order to achieve you must do. If you will do, then you can begin to work toward that goal you have set. There is a saying that a dream is just a goal without a plan or deadline. Is that you? Put your hand to something and let that something begin the process of moving you toward your goal. Make sure the doing is 80% of your day and not the dreaming. Dreaming is important for without them there would be no progress. Many years ago people dreamed of flying but they were told it was impossible. Today those dreams become reality carries millions of passengers all over the world and also carries astronauts into space hundreds of thousands of miles away. What is your dream? Write it down and put a plan to it. Make it happen. Spend 80% of your time working on making it happen.

Nido Qubein says, “Listening is to hearing what speaking is to talking. Hearing is the natural response of your ears to sound. But listening is using your ears. It is active listening. It involves your mind. It absorbs you wholeheartedly and you begin to understand what the other person is really saying. Listening is a greater service than speaking.” It has also been said, “You are not learning anything when you are talking.” Learn to listen and do it with intent. Many years ago I heard a pastor say what I have written below:

There are 3 different and distinct versions of what is said:
What you said
What I think you said
What you think you said

There are also 3 different and distinct versions of what is heard:
What I heard
What you heard
What you think I heard

The bottom line is learn to listen 80% of the time. Discipline yourself to speak less and you will find you will be far more respected.