The 80/20 Principle: How to Prioritize Effectively

Increase the efficiencies in business and life

The 80/20 Principle states that: “80 percent of the effects come from 20 percent of the causes.” Historically, it’s been most popular in business settings. Companies have often found that, for example:

• 20 percent of their customers brought in 80 percent of their revenue.

• 20 percent of their sales reps closed 80 percent of their sales.

• 20 percent of their costs made up 80 percent of their total expenses.

And that’s valuable information that can help increase efficiency and profits for companies. But the 80/20 principle is just as useful outside of business. You can ask yourself, for instance:

• Which 20 percent of your relationships create 80 percent of your happiness?

• What 20 percent of your daily habits account for 80 percent of your well-being?

• What 20 percent of your stuff do you use 80 percent of the time?

By answering questions like these, you can increase the efficiencies in your life. You’ll know who to spend your time with, what daily habits to focus on, and what clothes to keep in your closet.

And those are just a few examples, of course. The 80/20 principle is very useful anytime you want to figure out the most impactful causes and efficient actions.

In fact, it’s a great way to consume this newsletter. As you keep reading One Minute Wisdom, think about which 20 percent of the ideas that will provide 80 percent of usefulness to you. Then focus on applying those first.

Get into the habit of thinking 80/20, and you’ll spend a lot more time on what’s truly essential.