Applying “The Pareto Principle” to Your Goals…

Vilfredo Pareto was a 19th-century Italian social scientist and critic. He observed that 80% of the wealth in Italy, at the time, was concentrated in 20% of the population – something he felt that was not good for society.  While the genesis of his work is very seldom discussed, his name lives on in what is known as The Pareto Principle, or “the 80/20 rule” – a concept that is a relevant today as it was when it was first developed.

Talk to contemporary entrepreneurs and most will tell you that 80% of their business comes from 20% of their customers. Human resources executives will typically suggest that 80% of the employee relations problems and issues they have to deal with come from just 20% of the employees. And most business managers would agree that it’s a minority of their team members who are responsible for a majority of the innovation, creativity, and superior work their organisations enjoy. In all of these examples, the Pareto Principle suggests that we should pay attention to, and focus our efforts on, the critical few (the 20%) rather than the trivial or average many (the 80%).

So what does all this have to do with you and your goals? A lot! There’s a myriad of things you can do in pursuit of your professional and personal objectives. A large number of them fall into the 80% – the “trivial many.” A much smaller number fall in the “critical few” category – the important 20%.

Take a look at your goals and the action plans you’ve developed for meeting them. What are you doing? How are you investing your precious time? What do your past experiences – and the experiences of others – tell you? Are you focusing on “need to do,” high payback activities – or on less important, “like to do” tasks? Remember it’s that “critical few” that will propel you furthest and give you the most bang for your time an energy buck. When in doubt, think W-W-P-D (What Would Pareto Do?).

Don’t Lose Money!

Throughout the history of American enterprise, you’ve heard the words, "work hard and save your money." Work hard and save your money. It is the oldest rule for success in America. It’s so important, as a matter of fact, that W. Clement Stone once said, "if you cannot save money, then the seeds of greatness are not in you."

Saving Is a Discipline
Why is it that saving money is so important? Because saving money is a discipline and any discipline affects all other disciplines in your life. If you do not have the discipline to refrain from spending all the money that you earn, then you are not qualified to become wealthy and if you do become wealthy, you’ll not be capable of holding on to it.

The Law of Attraction
A principle with regard to saving your money is the law of attraction. The law of attraction is activated by saved money. Even one dollar saved will start to attract more money. Here’s what I suggest that you do. If you’re really serious about your future, go down and open a savings account. Put as much money as you can into it, even if it’s only ten dollars. And then begin to collect little bits of money, and every week go down and put something into that account.

Attract More Money Into Your Life
You will find that the more you put in that account, the more you will attract from sources that you cannot now predict. But if you do not begin the savings process, if you don’t begin putting something away towards your financial independence, then nothing will happen to you. The law of attraction just simply won’t work.

Do You Have Everything You Want In Life?

If you’re like most people the answer is a resounding NO.

Sure, you’ve worked hard and achieved some of your goals…but ask yourself, is there more? Could you do better?

If you are still falling short of reaching your dreams, I can help.

Most successful people have a common trait. They are notorious goal setters. They realise that a dream without a goal is only commentary. And hope is not a business plan.

Are these people smarter than you? Do they come from wealthy families?

 

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