Introduction
Modern life is a mistake. The way we organize our personal and social lives? Yes, that's the mistake. We're working to live, but somehow ended up living to work. Sounds like we took a wrong turn at the last evolutionary crossroads, doesn't it?
But fear not! There's a way out of this topsy-turvy world, and it's called the 80/20 principle. This funky little concept by Richard Koch says that roughly 80% of results come from 20% or fewer causes. It's been a hit in business and economics, driving progress throughout the modern world. Now, it's time to apply it to our personal lives and reap the benefits. As we go through this book, you'll learn to focus on the few things that really matter. We'll look at your self, your work, your money, your relationships, and how to live the simple, good life. With a personal action plan, it'll TRANSFORM your life! It's unexpected, it's powerful, and... and it works! Time to get smart with your time and energy.
Create More With Less
Did you know you can make a great dry martini by leaving out the Martini? It's true! And that's the doing more with less, for you. This idea has been driving human progress for centuries. Way back when, our ancestors figured out they could get more food with less danger by swapping their spears for plows. From the industrial revolution to the digital age, we've constantly found ways to boost our output while reducing our input. Just 40 years ago, a computer with less power than your smartphone would have filled an entire room. Now, we carry more computing power in our pockets than NASA used to put a man on the moon!
But unfortunately, we've completely dropped this awesome idea in our personal lives. Instead of seeking ways to do more with less, we've fallen into the trap of doing less with more. We work longer hours, take on more responsibilities, and run ourselves ragged in the pursuit of success. Totally forgetting that the same principle that's transformed our world can transform our lives, too. Consider your smile. It takes almost no effort, but the rewards are huge, right?
Just start thinking differently. Not, "How can I work harder?" but, "How can I get better results with less effort?" 80% of the results with 20% of the effort, By pushing yourself to find easier solutions, you'll stumble upon breakthroughs you never would have considered otherwise. And once you start applying this principle, it gets easier and easier. Those new, efficient habits you develop will become second nature before you know it. Soon, you'll be achieving more than ever while feeling more relaxed and fulfilled.
So why not give it a try? Start small. Let’s pick one area of your life and see how we can apply the 80/20 principle.
Focus on Your Best 20 Percent
Steven Spielberg at 17, sneaked onto Universal Studios, commandeered a deserted trailer, and wrote “Steven Spielberg, Director” on the door. 3 years later, he signed a seven-year long contract with the studio. THAT's focus! See, we become our best selves by honing in on what makes us unique. It's not about being a jack-of-all-trades, but a master of your own trade. But know what the problem is?
We're all trying to keep up with too much. It's time to simplify. With three simple steps: focus on your 80/20 destination, find the 80/20 route, and take 80/20 action.
Your 80/20 destination is all about figuring out what you really want. Try this: grab a piece of paper and jot down your dreams and goals you’ve really always wanted to achieve. These are your top 20% goals. Also, what you think are your greatest skills and attributes. Don't be shy - this is no time for modesty. Are you great at understanding people? Do you have a knack for solving puzzles? Are you the person everyone turns to when they need cheering up? These are your "20 percent spikes" - the things that set you apart. Once you've identified these spikes, think about how you can focus on them more in your daily life. Could you shift your career to better utilize these skills? Could you spend more of your free time developing these talents? All that will be your destination. Next is discovering the easiest way to get there – the 80/20 route. And finally, 80/20 action. Do less, achieve more. Like Koch did when starting a new consulting firm. Once he knew what he wanted, everything else became background noise. His focus narrowed to just two actions: finding partners and starting the firm.
Just by playing to your strengths, you'll make your life much more fulfilling. Speaking of fulfilling, are you happy?
Get more in less time, and have a tonne of free time to chill
Once upon a time, this Wall Street hotshot wanted to get into spirituality. So he marched up to a Zen master asking how long it'd take to reach nirvana. "Seven years," the master replied. Our ambitious friend, not one to waste time, boasted about his Harvard degree and Goldman Sachs millions, asking how long it'd take if he really hustled. The Zen master's response? "Fourteen years."
This little story challenges your "more is better" mentality. Pushing harder doesn't always lead to better results! With the 80/20 way, we can achieve more with less of our time.
See, most of our happiness and achievements spring from a small portion of our day. Like Archimedes and his "Eureka!" moment. And the beauty of our principle is that it frees us from busy-ness. We don't need to fill every minute with activity. Instead, we can focus on stuff that really matters. Warren Buffett, for example. You'd think the second-richest person on the planet would be constantly busy. Nope. He describes his work style as bordering on lethargy. He makes a few decisions, but they're the ones that count. Quality over quantity, people.
The point being: identify your "happiness islands" and "achievement islands" - those times when you're at your most fulfilled and best respectively. Maybe your happiness island is playing with your dog in the park. Perhaps your achievement island is when you solve complex problems at work. Whatever they are, the goal is to expand these islands and trim away everything that doesn't bring much joy or results. This might mean saying no to pointless meetings, cutting back on TV time, or even - gasp - putting down your phone once in a while. But, that’s how you find your way to peace of mind!
Moving on! Think money can buy happiness?
Money, Happiness, and the 80/20 Way
So what is it with money, huh? How are we all chasing after it and yet seem to lack it the most? Can the 80/20 way help here? Yes! Yes, it can.
Enter compound interest - or as Einstein called it, "the most powerful force in the universe." Italian professor Vilfredo Pareto, discovered that 20% of people owned 80% of the wealth. Safe to assume, it is this powerful force behind them. Which, btw, starts small. You don’t have to utilise all your income. Just save a little, add to it regularly, and before you know it, you've got a money avalanche. In 1946, Anne Scheiber invested $5,000 in the stock market. By 1995, she had a whopping $22 million. That's a 440,000% increase!
We can hear you saying, "Woman, I can barely afford my daily coffee, let alone save regularly." You need to rethink here cause saving isn't depriving, but paying yourself first! Like before you buy the subscription to your 37th streaming service, set aside 10% of your income. No exceptions! And then watch your money multiply!
But, here's the million-dollar question (pun intended): Will all this money actually make you happier? Well, if you're struggling to put food on the table, then yes! But once you've got your basic needs covered, extra cash doesn't buy extra smiles.
So what's the point? Well, it was never about having a Scrooge McDuck-style money bin to swim in. It's about freedom and peace of mind. Money is how you buy back your life energy. The tool to live a life you love. Instead of trading all your time for a paycheck, you can use your savings to work less, pursue your passions, or tell your boss "I quit" without breaking into a cold sweat.
The next thing we’re gonna apply the 80/20 on is relationships!
Relationships the 80/20 Way
Each person kills the thing they love! That's just how it is. Let's face it: life today is making it increasingly difficult to find, nurture, and sustain love and relationships. Without realizing it, many of us are opting for a higher quantity of lower-quality relationships. We have more connections, but they mean less. And our romantic relationships? Well, they're becoming endangered species. Take Bob and Jane, for example: globetrotters with great careers and a seemingly perfect family. Eight years later? Divorced! What? Why? How??
All because we're obsessed with 'more'. More of everything. But did you know 80% of our relationship satisfaction comes from just 20% of our relationships. Logical, really. Like how many people in your life truly matter? You can probably count them on one hand. So, focus on quality over quantity. Put most of your time and energy into those few key relationships. For instance, your 'the one'! As Koch's friend put it, "Nothing would impress her if I haven't met the basic few needs that mean most to her." It's not about grand gestures; it's about understanding what truly matters to your partner. Little effort on basic expectations will go a long away about preserving relationships.
Next? Families! Happy families practice what we might call 'love spirals'. It's simple: parents demonstrate love, kids respond positively, parents feel proud and show more love, and the cycle continues. Children don't understand 'quality time' - they want attention all the time. Now, what about friends? Take a moment to think: whose death would leave you desolated? Those are your key friends, the 20% who contribute 80% of meaning to your life. Make an effort to see them more often. It's better to have a deep conversation with a close friend than small talk with a dozen acquaintances.
Now! Let’s talk about one last thing.
Making It Happen
Chapter 9
Details coming soon.