![]() ![]() The 80/20 principle is one of the great secrets of highly effective people and organizations.ĭid you know, for example, that 20 percent of customers account for 80 percent of revenues? That 20 percent of our time accounts for 80 percent of the work we accomplish? The 80/20 Principle shows how we can achieve much more with much less effort, time, and resources, simply by identifying and focusing our efforts on the 20 percent that really counts. How anyone can be more effective with less effort by learning how to identify and leverage the 80/20 principle-the well-known, unpublicized secret that 80 percent of all our results in business and in life stem from a mere 20 percent of our efforts. SUBSCRIBE FOR INSTANT ACCESS TO UNLIMITED SELF-HELP + BUSINESS BOOK SUMMARIES FOR JUST $1. Please see the Privacy Policy, Terms of Use and Financial disclaimer for more information.The 80 20 Principle by Richard Koch Audiobook Summary If you would like to obtain personal financial advice about which investment options or platforms may be right for you, please talk to a licensed financial adviser or visit the ASIC financial advisor register in your area. This site also participates in paid display advertising, for example Google Adsense. Captain FI is reader supported, which means we may be paid when you visit links to partner or featured sites, for example the Amazon Affiliates program. I can only provide factual information based on my journey to Financial Independence, and that is provided for general informational and entertainment purposes only. I do not recommend nor endorse any financial or investment product, and my usage or opinion of any product should not be interpreted as an endorsement, advertisement or intent to influence. Just because I do something with my money (or use a particular service or platform) doesn't mean it is appropriate for your personal circumstances. This website provides factual, balanced information without judgement or bias and does not provide any general or personal financial advice about what you should do with your investments. ![]() It encourages you to think efficiently and what really matters.Ĭheck it out on Amazon here, listen to it through Audible or buy it from Australia’s local bookstore BooktopiaĬaptainFI is not a financial advisor and does not hold an AFSL. It also helps you cut back on the 80% of the things which waste your time but provide only 20% of the results. The Pareto principle or 80/20 rule can be applied to any area of your life you just need to identify the 20% that produces the greatest outcome, and then you can spend more time doing that. ![]() It is much better to have a small group of really good friends than a big bunch of distant friends. This allowed the company to focus on the minority (of products) which was producing the majority of profits for the company, and allowed time and focus to improve those.Ī parallel can be drawn to social circles and friendships do you find that you have the majority of your fun with only 20% of your friends? If you can identify this 20%, you should most of your effort into these relationships. Koch explains that when Steve Jobs returned to Apple in ’97, he cut the companies product line from 300 down to under 10. This is also thought of as getting the ‘80% solution on time’ rather than the ‘100% solution that never comes’. The rule of thumb therefore is to focus on the 20% of causes to improve 80% of the results, and not on the 80% of causes (input) for the 20% of results. The law of diminishing returns means the effort expended on the advanced details will yield much smaller results (for example trying to pick different types of index fund). When applied to your personal or business finances, my take on the 80/20 principle was that you should focus on the basics first (for example starting investing in an ultra low cost index fund). It is also an axiom of business to say that 80% of sales come from 20% of clients, and in management that 80% of your problems come from 20% of your employees. This has been shown to be the case in many scientific and mathematical models in society from land ownership, wealth disparity and income tax distribution. The 80/20 principle, otherwise known as the Pareto Principle or the Principle of Factor Sparsity states that 80% of the effects come from 20% of the causes. Your Money Or Your Life | Vicki Robin – Book Summary.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |