The 80/20 Rule: How it Works & How to Apply it In Your Life

Legend has it that Italian engineer Vilfredo Pareto noticed something peculiar about the peas growing in his garden. Vilfredo recognized that approximately 20% of his pea plants were yielding 80% of the pea crop. 

Pareto wondered if this applied in other situations, such as macroeconomics. Sure enough, when he did the research, he realized that 80% of Italian wealth was (and still is) controlled by 20% of the population. Pareto's insight became known as the Pareto Rule or The 80/20 Rule.  

Simply put, the 80-20 rule states that 80% of your outcomes (outputs) come from 20% of causes (inputs). Using the pea example, 80% of the peas eaten from the garden came from 20% of the plants. 

What is the 80/20 Rule

Mainstream examples of the 80/20 Rule

– 80% of your business will come from 20% of your marketing – 80% of Covid is spread by about 20% of people – 80% of crime is committed by 20% of criminal – 80% of car accidents are the result of 20% of driver

Benefits of The 80/20 Rule

– Time management – Efficiency & productivity – Self-development – Fixing financial issue – Leadership

Where to Apply The 80/20 Rule in Your Life

-Health -Business, Wealth & Investing -Relationship -Habit