““The most successful people change the world not through sweat and tears but through ideas and passion. It is not a matter of hard work or time on the job; it is having a different view, an original idea, something that expresses their individuality and creativity. Success comes from thinking, then acting on those thoughts.” ”
The 80/20 rule (or Pareto Principle) is a simple mathematical concept that was observed by Pareto:
The 80-20 rule, also known as the Pareto Principle, is an aphorism which asserts that 80% of outcomes (or outputs) result from 20% of all causes (or inputs) for any given event
There are many examples where you can apply this principle for a better quality life. Or should I say: a more flow-state driven life. A life where the right strategies align with the right intentions.
The 80/20 Rule in Trading:
I’ve recently started trading as a means of having some skin the game with my cryptocurrency show, the Bitcoin Brew. Suffice to say it’s been a rollercoaster. Trading is hard. Real hard. I’ve made some big wins and even bigger losses (I lost $400 in 2 weeks of trading).
But, severe losses and poor money management abilities aside, I have noticed that 20% of the trades that I’ve done have disproportionately given me most of my profits. That 20% for me has been $SPX (the S&P 500) and $XAU (gold).
80/20 Rule for Studies:
My first two years at University I fucked around while many of my peers took it relatively serious. My class mates would worry about marks and the only thing I could stress about was seeing a fat ‘P’ for pass — even if it was a 50%.
However, COVID came along and unlike many, I did the opposite of panic: in fact, I made the decision to use the time to become a better creative. These final few months of my degree has been the most fruitful and transformative.
It doesn’t matter how you start, what matters is how you finish. Even if it isn’t perfect, a finished prototype is better than anything you may not have finished.
80/20 Rule in Relationships:
There will be a few select friends that give you 80% of the joy you experience. These friends are worth holding onto. These are the people you spend your life with.
On the other hand, there will be the few who give you 80% of your anxiety. These are the people you should take immediate action with, by getting honest with yourself, and cutting them off.
The Facebook world has falsely led us to believe that having 1000 ‘friends’ is normal. It’s not. It’s impossible to keep everyone satisfied. Cultivate the 5 most important people in your life.
80/20 Rule in Diet:
20 percent of the calories you are consuming is causing 80 percent of your fat gain.
Carbs are efficient at storing fat with fewer calories because they spike insulin. This was good when a few berries in the bush was the difference between surviving and dying. However, this primal response to carbs is no longer serving us.
One of the best explanations I’ve heard is: it’s not what you eat, it’s what you don’t eat. Eating more veggies or fruit to counteract your weekend benders are not solving the problem (been there done that) - the veggies are probably making it worse TBH.
I’m not doctor and I don’t pretend to be one — but I do have skin in the game with fat-loss: I lost more than 70lbs and have kept it off for the last 6 years. 80% (or more) of your calories should be fat and protein.
80/20 Rule in Fitness:
Walking for hours on end fasted may be great way to lose weight, but there are drawbacks: It’s timely, it will drain you, and it’s not efficient in the business term of the word.
Whereas a high intensity CrossFit workout or a few hill sprints will stimulate every muscle fibre in your body and turn you into a fat-burning machine.
Understanding the 80/20 rule, even in its most basic, primitive way, will change your life. You will no longer see the world as a vacuum of pressure raining down shit on you 24/7. You will start to see the pattern of existence playing out in all areas of your life.
I’m no analytic over-thinker that runs the world through my skull in one’s and zeros — far from it. I don’t go around always thinking, ‘fuck, this barista is is the 20% that is giving me 80% less coffee!...Motherfucker!’
What I’m trying to explain is that if you take the time to journal on it, you will find the 80/20 rule just happens as the natural law of nature.
You will start to view everything differently. You will start asking questions that look something similar to: ‘why is that the way it is? Is there a better way?'
I would love to hear your thoughts on the 80/20 principle in the comments below.
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