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Published on December 5, 2019

How to Take Advantage of the 80 20 Rule to Succeed in Life

How to Take Advantage of the 80 20 Rule to Succeed in Life

The world of productivity has several hacks or tricks to help you manage your time. The amount of time management tactics to productivity strategies out there is both amazing and overwhelming.

Of course, to make matters harder for people, a lot of these methods have been tried by various people who have stood by them… To-do list systems, the Pomodoro Technique, Parkinson’s Law

All of these strategies are great strategies in their own way, but one strategy stands above all else: The 80 20 rule. Out of the many, this particular strategy has been used the most and is regarded as the most helpful in developing time management and other concepts in life.

But what’s so special about this rule? How does it give you success and how do you use it? Let’s explore the specifics.

What Is the 80 20 Rule?

Many people regard this rule as the 80 20 rule, but it has a proper name: the Pareto Principle. The principle was named after its founder, an Italian economist named Vilfredo Pareto, in 1895. How it all started was when Pareto noticed that people in society were divided into two “categories”:

  • The “vital few” which consisted of the top 20 percent with respect to money and influence.
  • The “trivial many” otherwise known as the bottom 80 percent.

As he researched this further, he came to discover that this divide didn’t apply only to money and influence but other areas too. Virtually all economic activity was subject to his previous observation.

That observation being this:

80 percent of the wealth of Italy at the time was controlled by only 20 percent of the population.

Since the development of this rule, humankind has used this particular ratio in all kinds of situations. Even if the ratio isn’t always exact, we see this rule applied in many industries and in life. Examples are:

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  • 20% of sales reps will generate 80% of your total sales.
  • 20% of customers account for 80% of total profits.
  • 80% of the revenue will stem from 20% of the workers.
  • And so on…

Either way, I’m sure you can piece together why people call this rule the 80 20 rule over Pareto’s Principle.

In terms of how this particular rule will be able to work for you, it’s a matter of applying this rule in our lives as I’ve said. For us to see success, the goal is simple.

We need to set it up in such a way that 20% of our input will give us 80% of our results.

Another way to think about it is we place 20% of our time on activities that give us 80% of our results in whatever area in life.

How Does the 80 20 Rule Work?

To best explain this, let’s visualize a bit.

In an ideal world:

  • Every employee would contribute the same amount of effort to work.
  • Every feature that’s released for an app or product would be equally loved by users.
  • Each business idea you come up with would be a hit.

In that scenario, planning would be a breeze. There wouldn’t be any need to analyze anything so long as you put in the effort.

But that’s not reality.

Yes, the effort is certainly an element, but what the 80 20 rule states is that everything is unequal. Invest in 10 start-up companies and you’ll find only a few will pass year two and make it big. You’re in a team of five and there’ll be one person doing more work than others.

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We wish our lives are always one for one in terms of input and output, but that’s simply not true. Understanding this is key to understanding how the 80 20 rule really works.

So how does it really work?

You may be asking and it’s quite simple. It’s a matter of focusing on what’s giving you the most in your life for little of your time.

Going back to the few examples I’ve presented above, consider this:

  • If two start-ups you invested in are making it big, focus on having a more direct hand and see if you can help them prosper more.
  • If 20% of sales reps are giving you 80% of your sales, focus on rewarding those and keeping their spirits high and motivated.

These scenarios can go on and on but the idea is to place your efforts on the 20% that is actually making the difference in your life. Another term that’s good to know is the diminishing marginal benefit.

Pareto didn’t come up with this one, but the law goes as follows: each extra hour of effort or worker will add less “oomph” to your finished results.

Eventually, you’ll hit a point where you will spend a lot of time on small and unimportant details. Similar to perfectionism.

So before hitting that point, you want to have a laser focus on the most important details. From family and relationships to your work or business. Prioritize the activities that are going to move you forward the most. And be wary of adding extra time, effort, or more hands into those particular tasks moving forward.

How to Take Advantage of the 80 20 Rule

So now that you have an understanding of the 80 20 rule and how it works, what is the best way to take advantage of it?

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Depending on where you are applying this rule, this can be used in all kinds of fashions.

For example, you can apply this rule to goal setting, as demonstrated by Brian Tracy in this video:

Or you can apply it in terms of general productivity as explained in this article: What Is the 80 20 Rule (And How to Use It to Boost Productivity)

The core of this rule is that it forces us to ask ourselves the questions we wouldn’t consider otherwise. It’s helping us to place our focus in the right places with regards to all things in life.

In short, the 80 20 rule places us in charge of our lives and helps us set out on our goals and dreams. With this in mind, here are some things you can consider concerning this rule.

Here’s what you can do to maximize the benefits of using the 80 20 rule:

1. Focus on Your Big Tasks First

While this is the essence of the 80 20 rule, it’s still worth mentioning. Why? Because so many of us feel intimidated by the biggest task. We instinctively avoid it and opt for smaller tasks first.

We think that if we build up enough tasks completed that we feel motivated to finish that really big one later. But that’s really false hope at work.

Once we finish off a lot of small tasks, we either feel drained or we tell ourselves we’ll do this the next day.

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Instead of doing all that, bite the bullet and tackle the largest task first.

I argue this by challenging you to ask yourself this one question:

“Is the task I’m about to do the top 20 percent of my activities or the bottom 80 percent?”

I’m sure you’ve seen time and again you or other workers spending a lot of time on one task for most of the day. In those kinds of grinds, you’re barely getting ahead and have next to nothing to show for it. That’s because they’re putting all their attention on work that’s in the 80 percent.

It’s normally the big tasks that are part of the 20 percent.

Another way to think about this is that everything we do starts a habit. If every day we spend our energy on low-value tasks, we will always prioritize those.

2. Stretch This into Personal Life

While I’ve been talking about business and setting goals, remember you can use this in other areas of your life too.

Take your personal life and ask yourself some of these questions:

  • How much TV do you watch on a regular basis? What sort of shows are you legitimately into? These questions can help you in recognizing what shows you are watching purely for consumption. By applying the 80 20 rule, you can cut back on Netflix, TV or Youtube video consumption and prioritize other areas of your life.
  • What does your wardrobe look like in terms of colors? Are there specific colors that you like? Knowing what you wear most times will help you in sorting out your wardrobe significantly. It also saves you time to come up with what to wear every morning.
  • How many newsletters do you actually read? This question can help you in figuring out which newsletters to unsubscribe to and can clear up a lot of space in your inbox. It can also relieve pressure from having to check your emails constantly.
  • How much time do you spend on your phone every day? How much of that time is actually doing something meaningful? These questions can help you in clearing out various apps that aren’t helping you with your goals. In fact, this can curb the need to check your phone constantly.

Final Thoughts

The 80 20 rule is the productivity hack that many of us need and for good reason. As you can tell, it’ll help you to focus and prioritize the more important aspects of your life.

Not only that, but it’ll maximize those outputs at the same time and ensure you’re not spending too much time working at them. All you need to do is start asking questions and taking action.

More Techniques to Help You Succeed in Life

Featured photo credit: Austin Distel via unsplash.com

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Leon Ho

Founder & CEO of Lifehack

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Last Updated on January 21, 2020

What Is Creativity? We All Have It, and Need It

What Is Creativity? We All Have It, and Need It

Do you think of yourself as a creative person? Do you play the drums or do watercolor paintings? Perhaps compose songs or direct plays? Can you even relate to any of these so called ‘creative’ experiences? Growing up, did you ever have that ‘artistic’ sibling or friend who excelled in drawing, playing instruments or literature? And you maybe wondered why you can’t even compose a birthday card greeting–or that drawing stick figures is the furthest you’ll ever get to drawing a family portrait. Many people have this common assumption that creativity is an inborn talent; only a special group of people are inherently creative, and everyone else just unfortunately does not have that special ability. You either have that creative flair or instinct, or you don’t. But, this is far from the truth! So what is creativity?

Can I Be Creative?

The fact is, that everyone has an innate creative ability. Despite what most people may think, creativity is a skill that everyone can learn and hone on. It’s a skill with huge leverage that allows you to generate enormous amounts of value from relatively little input. How is that so? You’ll have to start by expanding your definition of creativity. Ironically, you have to be creative and ‘think out of the box’ with the definition! Creativity at its heart, is being able to see things in a way that others cannot. It’s a skill that helps you find new perspectives to create new possibilities and solutions to different problems. So, if you encounter different challenges and problems that need solving on a regular basis, then creativity is an invaluable skill to have.Let’s say, for example, that you work in sales. Having creativity will help you to look for new ways to approach and reach out to potential customers. Or perhaps you’re a teacher. In this role you have to constantly look for new ways to deliver your message and educate your students.

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How Creativity Works

Let me break another misconception about creativity, which is that it’s only used to create completely “new” or “original” things. Again, this is far from the truth. Because nothing is ever completely new or original. Everything, including works of art, doesn’t come from nothing. Everything derives from some sort of inspiration. That means that creativity works by connecting things together in order to derive new meaning or value.From this perspective, you can see a lot of creativity in action. In technology, Apple combines traditional computers with design and aesthetics to create new ways to use digital products. In music, a musician may be inspired by various styles of music, instruments and rhythms to create an entirely new type of song. All of these examples are about connecting different ideas, finding common ground amongst the differences, and creating a completely new idea out of them.

What Really Is Creativity?

Creativity Needs an Intention

Another misconception about the creative process is that you can just be in a general “creative” state. Real creativity isn’t about coming up with “eureka!” moments for random ideas. Instead, to be truly creative, you need to have a direction. You have to ask yourself this question: “What problem am I trying to solve?” Only by knowing the answer to this question can you start flexing your creativity muscles. Often times, the idea of creativity is associated with the ‘Right’ brain, with intuition and imagination. Hence a lot of focus is placed on the ‘Right’ brain when it comes to creativity. But, to get the most out of creativity, you need to utilize both sides of your brain–Right and Left–which means using the analytical and logical part of your brain, too. This may sound surprising to you, but creativity has a lot to do with problem solving. And, problem solving inherently involves logic and analysis. So instead of throwing out the ‘Left’ brain, full creativity needs them to work in unison. For example, when you’re looking for new ideas, your ‘Left’ brain will guide you to a place of focus, which is based on your objective behind the ideas you’re searching for. The ‘Right’ brain then guides you to gather and explore based on your current focus. And when you decide to try out these new ideas, your ‘Right’ brain will give you novel solutions outside of the ones you already know. Your ‘Left’ brain then helps you evaluate and tune the solutions to work better in practice. So, logic and creativity actually work hand in hand, and not one at the expense of the other.

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Creativity Is a Skill

At the end of the day, creativity is a skill. It’s not some innate or natural born talent that some have over others. What this means is that creativity and innovation can be practiced and improved upon systematically.A skill can be learned and practiced by applying your strongest learning styles. Want to know what your learning style is? Try this test. A skill can be measured and improved through a Feedback Loop, and can be continuously upgraded over time by regular practice. Through regular practice, your creativity goes through different stages of proficiency. This means that you can become more and more creative! If you never thought that creativity was relevant to you, or that you don’t have a knack for being creative… think again! You can use creativity in any aspect of your life. In fact you should use it, as it will allow you to to break through your usual loop, get you out of your comfort zone, and inspire you to grow and try new things. Creativity will definitely give you an edge when you’re trying to solve a problem or come up with new solutions.

Start Connecting the Dots

Excited to start honing your creativity? Here at Lifehack, we’ve got a wealth of knowledge to help you get started. We understand that creativity is a matter of connecting things together in order to derive new meaning or value. So, if you want to learn how to start connecting the dots, check out these tips:

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Featured photo credit: rawpixel via unsplash.com

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