The Pareto Principle is where 80% of results are determined by 20% of earnings, or efforts. It is used by entrepreneurs to work out how best to …well, how best to make money, actually. So for someone like myself, who is self-employed, when I looked at my income a few years ago, it was with this principle in mind.
How I used it to sort out my income
Where was my money coming from?
- teaching yoga
- giving readings
- doing healings
- I did seminars
- had written many courses
- I took public classes & private classes.
It works for other things too
This principle is not only about money. It covers many
things. For example:
Other ideas for using this Principle
We can use the Pareto Principle on many levels:
- it has been found that, in a country, the overall wealth of that country will be held by 20% of the people. (I am assuming that the other 80% of us are doing all the work…….)
- if you look at your clothes, you may well find that you only use the same 20% of them over & over, & the other 80% takes up too much space, & causes clutter
- when I moved house recently, I kept only what I thought was my 20% of everything: clothes, books (that was the hard one!) kitchen “stuff”, bed linen, towels, cushions, etc. I thought that I didn’t have much to start with, but truly, I could have opened up a small op shop with all the gear I gave to church shops & friends. There is more going as time goes on. Reducing clutter, having less “stuff” reduces stress, & overall, makes for less housework & a cleaner tidier home
- I intend this year to look at a few more 20/80 “things”. Today I’m looking at my diet a bit more closely, to see what I eat (20%, which really is only a measly amount) that in turn creates 80% of weight problems. And then my 20% of foods that I actually eat often, which gives me 80% of my optimum nutrition. Which I sort of already do. I know the foods that I eat over & over that make me feel satisfied & satiated. And most of the time that is what I stick with & what I buy. But it is time to update things, minimise some things, & swop some other things for lower fat, lower calorie versions. For example, when my cheese is used up I’m going to use cottage cheese with some parmesan instead. Not always…but often, as I’ve noticed that I can go for weeks without cheese…….then when I do buy it, I eat too much of it
- and I’m looking at my remaining books. What to keep (I love books!!), & what to say a sad adieu to. My beloved Star Trek books are mostly gone (sob!), all the yoga books that I had never even read, excess jewellery & knick knacks. I’ve moved into a very wee cottage & there simply isn’t the space to keep all my bits & pieces. What I intend to do with a less cluttered life is to do more things that I truly love to do
Other ideas for using this Principle
We can use the Pareto Principle on many levels:
- you might find that 80% of your problems can be vastly reduced, just by looking at the 20% of causes
- 80% of wasted money. What are you doing 20% of the time to cause this?
- look at your job: what 20% is giving the best 80% outcome?
- what 20% is causing you the most headaches? You know, messy clutter, time wasting
- what are the 20% of relationship difficulties caused by?
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