Change Your Life with the 80-20 Rule

In today’s world, people get obsessed with lines like “go big or go home,” “think big,” and “too big to fail.” But what if bigger is not better? What if keeping your mind locked on a single goal is not a problem at all? The truth is, it is not. And the 80-20 rule proves it.

As I always say, “What you focus on constantly is what you will achieve.” Nobody wants to spend life being pulled in a hundred directions at once, feeling like there is never enough time. When you put the 80-20 rule to work, you do not have to.

What is the 80-20 rule?

The 80-20 rule is the simple principle that 20% of what you do produces 80% of your results. Put another way, 80% of your outcomes come from only 20% of your actions. Also known as the Pareto principle, the 80-20 rule is a timeless idea about focus. Because so much of your productivity comes from a relatively small share of what you do each day, centering on the most productive tasks leads to far greater output.

The Pareto principle comes from Italian economist Vilfredo Pareto, who first introduced it in 1906. In the 1940s, business theorist Joseph Juran began popularizing the idea and connecting it to business situations. That is why the 80-20 rule is often used in business, but you can also apply it to personal goals such as finances and spending, or even learning a new skill.

Using the 80-20 rule means dropping a few traditional productivity myths. First, the myth that everything matters equally. It does not. Shift your mindset and time management and set clear priorities. Second, the myth of multitasking: when you try to focus on everything at once, you end up focusing on nothing.

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Learn to manage your focus

Time is the currency of achievement, yet some people seem to get more results from their time than others. Why can they do more with the same hours? After all, we all get the same 24 hours every day.

What I always tell my clients is this: “One reason so few of us achieve what we truly want is that we never direct our focus; we never concentrate our power.” The 80-20 rule explains this common problem and shows how to overcome it. High achievers do not have fewer obligations, more help, or better luck. They have more focus.

My favorite book of all time, the one that helped me build a successful business after years of failing, was written by Gary Keller, founder of real estate giant Keller Williams. He wrote an entire book on the Pareto principle. “The ONE Thing” (The ONE Thing) is about stopping the people and distractions that steal your time and keep you from your dreams. “The moon is reachable if you prioritize everything and put all your energy into the most important thing,” Keller says. But, “Extraordinary success is sequential, not simultaneous.”

How to use the 80-20 rule

You cannot use the 80-20 rule in your favor unless you know what you want to focus on. How do you cut through the background noise and lock onto the 20% that will make an extraordinary difference in your life? Follow this equation: Purpose + Priority = Productivity.

1. Find your purpose

Your purpose is the foundation of everything in your life or business. Every time you make a decision or a change, ask yourself: “Does this serve my purpose?” If you do not know your purpose, you cannot set goals or take meaningful action. It matters that much.

Your purpose might be more time with family, the freedom to live life on your own terms, or the money to travel the world. In business, your purpose is the vision of your company. It is why you started in the first place. It is the difference you wanted to make. When you apply the 80-20 rule the right way, you start thinking big, but you stay focused long enough to act.

2. Focus on your priorities

Now get specific: what is standing between you and living your purpose, in life or in business? Maybe you need to finally take the leap and start your own company. Maybe you need to save for a house down payment. As a business leader, you may need to find or create new efficiencies or improve your processes.

Write down five things you could start doing today to build the extraordinary life you want, one where you live your purpose every day. Then rank them by how quickly they move you toward your goal. The top item, the most significant one, is your first priority.

3. Create actions to take

You are not done yet. Priorities are useful, but they are not enough to cross the finish line. You need smart goals: steps that are specific, measurable, achievable, realistic, and time-bound. Then you must hold yourself accountable to them. Those specific action items are the real 20% of the 80-20 rule: the things you will spend 20% of your time on that produce the best results.