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“If you don't find a way to make money while you sleep, you will work until you die.” - Warren Buffett

Pareto Principle and the Way It Improves Your Productivity


In this world, you will come across different kind of principles.

One of the most interesting ones is the Pareto Principle.

Now... before you read the rest of this article, make sure to check This System.

At the core of the Pareto Principle is the 80/20 rule.

It’s simple.

This means that 80% of the results are created by 20% of the actions.

Interesting, isn’t it?

This also means that you can make the most out of anything you do.

You simply have to identify the 20% which consists of important things that you do.

This sounds easy.

In reality, it’s far from that.

Hence, this article will give you actionable tips on how you apply Pareto Principle in your life.

Here are a few areas in your life that you can apply the Pareto Principle.

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Key Areas in Your Life to Apply the Pareto Principle

  1. Making money
  2. Building relationships
  3. Taking care of your health
  4. Lifelong self-learning
  5. Building self-confidence
  6. Progressing in your career
  7. Breaking free of addictions
  8. Taking care of your mental health
  9. Moving out of your comfort zone

1. Making Money

Making Money

It is nearly impossible to deny the importance of money.

This piece of paper controls different things in our life.

In fact, most of the things we do today are to make more money.

In your pursuit to make more money, you can apply the Pareto Principle.

At the moment, identify the main things that make the most money for you.

For example, you make the most money from blogging.

Now, think about how you increase your income from that area.

To know more money-making opportunities, you should reach out to other bloggers and companies.

From here, you can identify more ideas on how to make more money by blogging.

Does this mean that you should abandon your day job?

Not really.

In fact, you should always have something to hold you down to pay the bills.

If things go south, you know that you will always have your day job.

For some people, residual incomes are very helpful.

Residual income helps you make money even when you are sleeping.

When it comes to making money, you must always keep track of your time.

Here, Pareto Principle ensures that you keep track of the 20% most important things to accomplish.

This helps ensure that you are making the most out of your time.

Tools such as Google Calendar and Todoist are excellent at helping you manage your schedule.

Remember that keeping track of your time means increasing the chances of you making money.

2. Building Relationships

Building Relationships

Have you assessed your overall relationships so far?

As humans, we go through different phases of life.

This also means that we build relationships with different people.

In general, relationships consists of these four.

Friendships, family, romantic partners and professional ones.

Over time, some relationships will grow sour.

More importantly, some relationships will become toxic to our well-being.

You can use the Pareto Principle here.

Identify the relationships which you believe maximize your well-being.

Then, eliminate toxic relationships.

There is a simple way to identify if a relationship is good for you.

Ask yourself, does this relationship help you become a better person?

Not doing an inventory check on relationships can be dangerous.

Research shows that we are a reflection of the people we surround ourselves with.

If you surround yourself with negative people, you will slowly turn into one.

However, you become more positive if you surround yourself with optimistic people.

Using the Pareto Principle, you need to identify relationships that are good for your self-development.

Of course, this is easier said than done.

If you are in a toxic office environment, you can’t exactly resign immediately.

Instead, you should learn about group dynamics in the workplace to know how you can work better in a negative environment.

As a whole, knowing good relationships from the bad will help you be more positive in life.

3. Taking Care of Your Health

Taking Care of Your Health

Would you want to be a millionaire but you’re too sick even to spend your money?

Our health is life’s gift to us.

It is up to us how we take care of it.

Now, let’s look at this from the Pareto Principle’s point of view.

Are you spending 20% of your time to take care of your health?

This can be anything you do to live an active life.

It can either be exercising 30 minutes a day or taking the stairs at work.

When it comes to your health, you should be intentional in your efforts.

Hence, identify the healthy habits in your life.

What are the main habits which are improving your health?

If you’ve never thought of this, there’s no better time than now.

Also, you must be aware of what you eat.

Healthy eating habits go a long way to keep you away from diseases.

Did you also know that stress leads to poor eating habits?

Stay in control of your stress levels by using Headspace, a simple meditation app.

Before it is too late for you, get in control of your health.

Pareto Principle is crucial as it helps you highlight the importance of your healthy habits.

Starting your healthy lifestyle is easy.

Websites such as Pinterest helps you discover a lot of healthy eating recipes and tips for an active lifestyle.

You have all you need to start living a healthier life.

Take your first step today.

4. Lifelong Self-Learning

Lifelong Self-Learning

At any age, there is always something new to discover.

Hence, the process of learning never ends.

Formal education may have ended when you graduated from university.

However, you continue to learn in your workplace and even after you retire.

Hence, use the Pareto Principle to understand more about your self-learning habits.

Does 20% of your habits encourage you to learn something new?

One of the most unproductive habits people do is procrastinating.

This leads to high level of unproductivity.

It can affect your personal and work life significantly.

So, you must learn how to overcome procrastination effectively today before it is too late.

As we go through life, it is always good to have something to look forward to.

You may feel like your work routine is too dull.

So, you want to try something new.

With the Internet, there are no excuses for you not to pick up a new interest.

Websites such as YouTube are excellent at teaching you new skills.

There are also plenty of other platforms which provide online courses for a variety of skills.

So, you can try platforms such as Lynda, Udemy and Khan Academy that go a step further in encouraging self-development.

Learn how to code, improve your photography skills and e-commerce skills today.

All these resources are available at the tip of your fingers.

They are also highly affordable.

Start living a life worth telling a story about.

5. Building Self-Confidence

Building Self-Confidence

Low self-esteem issues can cause you not to live your life to the fullest.

This also causes you to always feel inferior to others.

As a result, you may always appear sad, depressed and unmotivated.

The negative effects of this can spread to different areas of your life.

Use the Pareto Principle to help you improve your self-esteem.

Identify the 20% in your life that boosts your confidence.

For some, it may be their physical appearance and having money.

However, research shows that having emotional support plays a huge role.

More often than not, there is always a reason for lack of self-confidence.

Pareto Principle can also be used to identify negative habits.

If you are overweight, identify 20% of your habits which are leading to it.

Also, if you have anxiety, identify 20% of the situations which triggers it.

Additionally, if you are always broke, identify 20% of your habits which causes you to spend too much.

Also, you can read our guide on frugal living which will help you save up to $25,000 a year.

Once you have identified the negative habits in your life, do something about it.

When you start taking actions, take small steps forward.

Also, make sure that your goals are realistic.

Having big goals can cause you to feel demotivated when you can’t achieve it.

Working on your self-esteem can be seen as a road always under construction.

However, working on it continuously is a great investment in yourself.

6. Progressing in Your Career

Progressing in Your Career

For most people, career progress plays a huge role in job satisfaction.

In fact, most millennials today are interested in jobs that provide promotions and other benefits.

Depending on the employer you’re working for, career progress may mean different things.

However, most companies will outline how an employee can experience career progress.

This is usually available through a written document.

From here, we can apply the Pareto Principle.

First and foremost, you must understand the requirements for career progress in your company.

Then, spend some time to create an actionable plan to achieve these requirements.

Of course, this won’t happen overnight.

This can take anywhere from a few months to a few years.

Hence, keeping track of your actionable goals will be important towards your progress.

Using the Pareto Principle, identify a few key things that will contribute towards your career success.

Then, execute your plan.

Over time, there may be changes in the requirements.

Keep track of those as well and change your plan accordingly.

Pareto Principle helps you to get down to the important details on getting things done.

Hence, you won’t spend too much time doing unnecessary tasks.

Also, you can identify the things that you should avoid that can jeopardize your career progress.

As a whole, career progress can be achieved by establishing realistic goals and working towards them diligently.

7. Breaking Free of Addictions

Breaking Free of Addictions

If you think drugs are the only addiction that ruins people’s lives, think twice.

Today, there are different types of addictions people have that they may not be aware of.

If you constantly feel that you need to check your phone, you may be addicted to it.

Social media addiction is also increasingly prevalent today.

Do you know how much time you spend on Facebook, Twitter and Instagram?

If not controlled, this can cause you to lead an unproductive life.

If necessary, take a social media break.

So, we can use Pareto Principle to identify if you have been unproductive.

Are you spending time on the 20% of things that matter or are you too busy scrolling through Facebook?

It’s easy to lose sight of the tasks that matter.

Therefore, learn about how you can write a personal mission statement.

This will help you be more clear about what you want to achieve in life.

There are also other addictions that people commonly have.

It can be towards work, playing video games, shopping and self-harm.

Pareto Principle shows that addictions can be overcomed when you know your priorities.

What are the things that you can do to move away from your addictions?

If anything, Pareto Principle shows that these things do not have to be major steps.

If you are a workaholic, take time off and go on road trip.

This will help you gain a new perspective on life.

Keep in mind that you must achieve a good work-life balance to live a healthy life.

Most importantly, breaking free of addictions needs to be taken one step at a time.

It will be difficult to break free but the first step is always the hardest.

Keep pushing through.

8. Taking Care of Your Mental Health

Taking Care of Your Mental Health

In this article, we’ve discussed the importance of taking care of your health.

Did you know that your mental health also plays an important role towards your well-being?

Today, there are different types of common mental health issues.

This can be anxiety and depression.

Also, someone can feel constant changes in their mood.

Ultimately, this can lead to social dysfunction.

Many people with mental health issues are uncomfortable in a social setting.

If this is you, seek professional help to diagnose your issue.

Understanding the nature of your mental issue can help get to the bottom of the issue.

You can also focus doing 20% of the things that matter to improve your mental health.

If you are too shy to seek professional help, there are helplines that make sure you have someone to talk to.

In general, it is vital that you take care of your mental health.

Even if you don’t have mental health issues, it is always good to be in a positive and healthy environment.

For example, search for jobs that has a healthy work culture.

Minimize the time you spend with negative people.

At times, reward yourself for achieving your goals.

Also, get enough sleep.

Getting at least 8 hours of sleep is important.

It helps you wake up feeling refreshed and ready to face the day.

Inherently, engage in activities that will maximize your mental health.

9. Moving out of Your Comfort Zone

Moving out of Your Comfort Zone

Have you ever had the impulse to buy a plane ticket and hop on a plane today?

Maybe, you should.

As humans, we must constantly push the boundaries of life.

This makes life more interesting.

Also, it helps us discover new things.

Hopefully, this will inspire us to see life in a different perspective.

Based on the Pareto Principle, 20% of your actions create 80% of the results.

More often than not, the actions which comprise of the 20% are those that push your limits.

Once in a while, try to do something that you’ve never done before.

Besides your commitment to work and family, what else do you want to do in life?

Perhaps you want to travel solo.

Also, you may want to bungee jump from the tallest building in the world.

Or, you want to learn how to make money from cryptocurrency.

You can also learn how to set up your own business with a low budget.

Inherently, all of us have ideas that we want to try.

They don’t have to remain as ideas forever.

You can act on them and start making them happen today.

When you finally act on it, you will realize one very important thing.

You are capable of working on your dreams.

Also, you can rely on your capabilities to follow through with your ideas.

Most importantly, you will live a very interesting life!

What Can We Learn from the Pareto Principle?

The Pareto Principle teaches us one important truth.

We must know our priorities in life.

Without it, we will become unsuccessful and miserable.

Hence, apply the Pareto Principle to these nine areas of your life.

Ultimately, it teaches you how to live a full life.

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