The 80/20 Rule, Because All Work And No Play Makes Jack A Dull Boy

There’s a belief, a false one by all counts, that success depends on the amount of time, work, and effort we put into an undertaking. We see high-fliers and we assume that those individuals must be doing something we aren’t. How else could they earn so much more?

Once you break things down to size, though, there isn’t all that much difference between the efforts of the high-flying office worker, and the receptionist earning $10 an hour. Equally, the managers in any retail environment tend to kick back in the office for much higher earnings than their continually busy shop staff. Etc, etc., until time immemorial. 
You could say, then, that the idea you need to increase output or dedicate yourself more firmly to any money-making enterprise is absolute twaddle. In fact, increasing your workload purely because you ‘think you should’ is a sure way to the burnout currently ruining our nation, and an ultimate loss of earnings.

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That’s all well and good, but it likely leaves you with one pressing question – if increased workloads won’t help you earn more, then what will? It’s a fantastic, nay, crucial thing to ask, and the answer is guaranteed to surprise you. Despite popular opinion, the secret to earning more often means working less, and it’s all thanks to the 80/20 rule.

Otherwise known as the ‘Pareto Principle,’ Italian economist Vilfredo Pareto first coined this secret to success in 1895 after realising that 20% of people were earning high quantities compared with just 80% of lower incomes. Once this came to his attention, it wasn’t long before Pareto realised that he could apply this outlook to any economic situation, including (you guessed it) how much time we spend working. 

Pareto suggested that 20% of our daily tasks resulted in 80% of our outgoings. Thus, the 80/20 rule was born, and with it the chance to earn more while working less. But, how exactly can you apply this basic principle to earnings that don’t leave you on the brink of burnout? 

# 1 – Realise your mistakes

It isn’t possible to become what you want to be without realising the mistakes stopping you from getting there. If Pareto is right, and only 20% of your efforts are currently leading to the majority of your earnings, then it follows that optimising that 20% and dropping the rest is your best chance at higher earnings and a lessened workload. 

It’s a magic principle, and it’s surprisingly easy to get your head around. Let’s say, for instance, that you accept a podcast sponsor who is willing to pay for a one-off advertisement. That’s fine, until someone else comes along with a long-term sponsorship deal for which the same ad played on ten podcasts sees you earning each time, all without more work on your part. Sticking with the first sponsor is an obvious mistake, yet it’s one a surprising amount of us would make. Recognise these faults in your thinking, and take the larger sponsor with the 80/20 rule as your guidance every time! 

# 2 – Use tech to take this further

When Pareto developed his theory, he didn’t have tech behind him. But, you do, and it can maximise your 80/20 abilities in entirely new ways. By automating any number of processes, you guarantee that your 20% of output is 100% effective for boosting your profits.

Take, for instance, the world of trading. You could spend all day studying markets and attempting hedging your bets on the best. Or, you could consider using a trading system that relies on binary options robots to take care of the studying for you. With just one input on your part, this gains you access to far more markets at any given time, and thus ensures you’re more likely to earn big.

The same rules apply for things like automated marketing, data analysis, and a whole lot besides. Simply research the best new AI capabilities to keep on top of your 80/20 game. 

# 3 – Let it go

Let it go; let it go! No, seriously. Even with the 80/20 principle, you may struggle to let go of the idea that more work is best. As such, you could still end up spending 15 hours in the office. As well as reducing cognitive focus and productivity, you know full well by now that this won’t equate to profitability. You therefore owe it to yourself and your earnings to let it go and leave the office at a decent hour already!