80/20 relationship: A new perpective.
The cause and effect relationship has many aspects in every discipline of life. For every cause, there are several effects. When we talk about the 80/20 rule, it’s all about cause and effect relationship: 80% of effects come from 20% of causes. Italian economist Vilfredo Pareto has first coined this theory of 80/20 rule. According to him, 20% of people control 80 % of the wealth and land. He found and introduced this rule while gardening, he noticed that 80 % of total harvested peas yield came from 20% peapods.
The other name of 80/20 rules is “The Pareto Principle” or “The Law of the Vital Few”
Surprisingly, you’ll find 80/20 relationship rules everywhere. It is applicable in our daily life.
Here are some examples of 80/20 relationship
- 80% of results come from 20% efforts
- 80% of production comes from 20% of workers
- 80 % of revenue is generated by 20% of customers
- 80 % of crimes are committed by 20 % of criminals
- 80% of global wealth is controlled by 20% of people
- 80% of consumption is dominated by 20% brands, such as Coca-Cola, Microsoft, Samsung, and iPhone.
80% of revenue in a business comes from 20% loyal customers
A minimalist approach: the philosophy of less is more
Minimalism is a type of lifestyle that is very appealing: it’s the lifestyle idea of less is more.
In other words, you have a simple and passive approach to anything that you are doing, and basically declutter your life and get rid of a lot of these annoyances or unnecessary parts of your life that are consuming you and bringing stress towards your life.
To do this, you must focus on the 20% essential elements that give you 80% of the expected result. In fact, the 80% remaining items will consume your time only for a few details.
The main advantages of this approach are saving your time, your energy, and your mental health!
Applying “Less is More” means asking yourself:
- How can you omit the tasks that do not make high value?
- How can you use your energy for the things that can make you happier and more satisfied?
How to get more with less
Nowadays, everyone is running in the race of working had and more. We are taught that to get more; we must do more. If we are not making efforts for more, then we are losers. In this race of not ending activities, we have a to-do list of more for the next few months. But the reality is, by doing this, we are only more exhausted and less efficient. As we keep moving for doing more, we ultimately lose our health, social life, and spiritual happiness, and in return, we pay extra money or take loans to regain all these things.
When you give up those things, which are not necessary, you focus more on the essential elements of your happiness and you will save your energy for the things that worth it.
How to work with the 80/20 rule practically
If you are an executive, then surely, you must manage limited resources. It’s not just about time but many things such as team management, financial management, etc. The real spirit of a Pareto approach is to figure out which project has more importance, which goals should be given priority, and which aims to put at the second stage. This approach helps cut costs and increase the efficiency of an organization.
If you are a freelancer, then you can use the 80/20 rule to work only for the clients who pay you more. Yes, it’s also not wise to put all efforts for one or two clients, but too much diversity could also lead to a lost energy, and at the end, your efficiency will be reduced.
If you are an entrepreneur, you should focus on specific tasks and targets, which will reward you more with less working. Yes, entrepreneurs, many times, are very much exciting and want to try every new idea, but this approach can exhaust you, and as a result, you’ll be demotivated.
The 80/20 rule in personal life
We can manage many things in our personal life, too, by applying this rule. Indeed, giving 20 % of our time to our family and friends, can give us 80 % of personal happiness.
20% of good friends are far better than 80% useless friends.
Through less but focused efforts, you can get more results. We should ovoid those things and activities, which take away our time and energy, and focus only on thing that are more important. Less is not always less, and more is not still more; sometimes, less is more.