The 80/20 Principle is actually a concept that could change your life, or at least the very way you approach your way of living. We use the 80/20 Principle in many aspects of our real estate virtual assistant company. The principle that is sometimes primarily aimed at business people, in our case Real Estate, but the rule is easily applied to every human being and can work for anyone in any situation, not just REOs and Foreclosure processing.
Most of us are not big on math, so the idea of understanding a formula is likely to scare us away at first. But don’t be put off by the figures – the mathematics of it all is easy. The principle actually began in Italy when a positive thinker and economist fan called Pareto noted that 80% of all the income that Italy enjoyed was being taken by just 20% of the population.
However, this rule holds true in other situations such as 80% of all your outcomes come from just 20% of your input. You could also argue (with a correct analysis) that 20% of your activities provide you with 80% of your financial income.
While it is certainly the case that in business the 80/20 Principle applies, it is so much more fun when we apply the rule to your everyday happiness and social life. But never forget that money so often provides us with happiness – or at least prevents us from the bad feeling of poverty and debt, so an important role in your happiness and your cash is hugely influenced by 80/20 principles.
Other business example are that 20% of all employees are responsible for 80% of any company’s output. Also, you may look at matters much closer to home; your mobile phone for example – Let’s say you have 100 people in your contacts list, it’s a sure fire bet that just 20 of those folk who receive calls and call you on your phone represent 80% of all activity on your call log.
The same examples can be found in email correspondence, the amount of colleagues you speak to at work. If you have 10 people in your office, you will speak to two of them about 80% of the time.
The message to make this work for you is simple enough – focus on those things that produce the best outcomes for you and you will enjoy the revenue in greater numbers and save so much time in your daily life, and as many of us know, time can be more valuable than money.