Are you tired of taking an unpractical self-improvement course? That’s why we will discuss the application of the Pareto Principle in real life to filter important things.

Most of the courses just focus on theoretical things and teach that advice which is not practical to apply in daily life.

But they didn’t talk about how to apply those concepts in practical life. There is just one problem that you missed is How to prioritize things?

I’m sure you’re with me on this one…

Without any delay Let me break this down for you…

Contents [hide]

1 What is the Pareto Principle or well known 80/20 Rule?
2 Why is it important to learn Pareto Principle?
2.1 Business & Financial:
2.2 Computing & Technology
2.3 Sports
3 Importance of the Pareto Principle in the Real World Or Daily Life.
4 How to apply the 80/20 rule practically in Real Life?
4.0.1 Follow the 4 steps below :
4.1 Trick to pick the important 20% without confusion?
5 How to use the Pareto Principle in learning new things & hobbies?
6 How to find that practical 20% using the I/O Box Method?
7 How to apply in three major pillars of life?
7.1 Must Buy Books Based on 80/20 Rules and Self-Development
8 Conclusion:
8.1 Share this:
8.2 Like this:

What is the Pareto Principle or well known 80/20 Rule?
What is Pareto Principle?

In simple words, 80% of output comes from 20% of input.

Joseph M. Juran is the one who suggested the principle and named it after economist Vilfredo Pareto, he discovered that approximately 80% of the land in Italy was owned by 20% of the population.

The famous Pareto Principle is also known as 80/20 rule, the law of vital few, the principle of factor sparsity.

The Pareto Principle is known by the 80/20 rule worldwide. In Fact, many self-development books were written on the 80/20 rule.

The Pareto principle states that for an event, 80% of effects occur by 20 % of causes.

In context of time-management, 20% of the time created 80% of productivity.

Pareto noticed that 80% of the land in Italy was owned by 20% of the population.

And a similar distribution applied to various countries. Which helps the government to do data analysis.
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Why is it important to learn Pareto Principle?

Pareto developed both concepts in the context of the distribution of income and wealth among the population.

Pareto found that 80/20 rule can apply in real-world analysis such as Economics, Growth, Financial, Relationship, lifestyle, Business Model, Revenue System, Strategy, Goal setting, Money-Making, Trading, Self-Development, Computing, Sports, Habit, Writing…

In a person’s daily routine there are very few and important decisions to be made. So Pareto principles help to filter those decisions and help in setting goals.

Example of some known application of the Pareto Principle & I assured you would be surprise to know.
Business & Financial:

IN the US, the top 20% of earners have paid roughly 80-90% of Federal income taxes in 2000 and 2006,[10] and again in 2018.[11]

Business management says 80% of sales come from 20% of clients.

80% of revenue is generated by 20% of the salespeople

80% of complaints come from only 20% of customers

Computing & Technology

Microsoft noted that by fixing the top 20% of the most-reported bugs, 80% of the related errors and crashes in a given system would be eliminated.

Lowell Arthur expressed that “20 percent of the code has 80 percent of the errors. Find them, fix them


20% of exercises and habits have 80 % of impact which give more time to an athlete to socialize.

15% of all the players last year produced 85% of the total wins with the other 85% of the players creating 15% of the wins. The Pareto principle holds up pretty soundly when it is applied to baseball.”[18]

Occupational health and safety professionals use the Pareto principle to get information about hazard prioritization.

However, there is no rigid ratio it may be 80/20,72/28,75/25…. But the ratio should be close to 80/20.

You may wonder how to apply in real life. Wait wait … We will give you detailed steps to find 20% of things.
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Importance of the Pareto Principle in the Real World Or Daily Life.

Although 80/20 plays an important role in success.

What if I asked you about the main traits of success?

Your answer maybe is growth, happiness, relationship, wealth, health,…

You will be shocked to know that 80/20 rule can apply to anything that you can imagine like productivity scale, time management, skills, economic growth, production, happiness, business growth, sales, relationship….

As Brian Tracy also Focused on Pareto Principle (80/20)
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How to apply the 80/20 rule practically in Real Life?

Applying is as simple of daily practice.
Follow the 4 steps below :

Find a piece of white paper or mobile app to make a to-do list.
Write down the most desired number of things you want to do. Let’s suppose (x) things you want to do in life.
Pick the 20% most important things you want to do in life while neglecting its difficulty. That is (20/100 * x).
Just Focus on those 20% things & it should first to be done.

As Brian Tracy said –

People procrastinate to do the first 20% things because it requires a lot of hard work and contributes the majority of the big part in success.
How to maKe Pareto List ?

Wait… While doing the above process majority of you find a Common problem.

During this process, I bet you will definitely confused while deciding the 20%.

Don’t panic.

Let me break the confusion process for you-
Trick to pick the important 20% without confusion?

Let imagine a situation-

Suppose you have two days to live in which you can do only one thing each day according to that pick the first one and then second.

Now you have shortlisted the most important things which impact positively in life.

Exerts all your efforts and focus to do.

A well-known rule called 10000 hours by Malcolm Gladwell’s– The principle holds that 10,000 hours of “deliberate practice” are needed to become world-class in any field.
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80/20 simply suggests you to work smart and according to priority.

It simply means to push your limits and achieve it.

As Mark Twain once said “If it’s your job to eat a frog, it’s best to do it first thing in the morning. otherwise, the frog will eat you meaning that you’ll end up procrastinating it the whole day.

Our mind always wants to find a simple and quick solution.

As instead of doing small and easy work at first do the toughest one.

The idea is to resist the desire to clear up easy things.

If you do small and easy-peasy work at first then after an interval you procrastinate to do the toughest one. It may decline your career growth.
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How to use the Pareto Principle in learning new things & hobbies?

Pareto principle moreover helps you to learn new things efficiently.

If you want to learn new things just analyze the 20% of important element neglecting the minor which make you succeed in very less time than others.

The science behind that is to focus on the important ones.

Another way to find 20% by the I/O Box Method. You can use either the Pareto Method or the I/O Method.
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How to find that practical 20% using the I/O Box Method?

There are 4 possible paths to take while achieving any goal. Yes, we follow one of the below but we don’t know about it.

While considering all the 4 situations, analyze all of them by creating the I/O Box method.
Pareto Principle

Suppose you are a college student and your examination is coming up.

Categories each of four elements and write what you want from this exam in box .


Write each case in each box according to you and where you want to apply.

Low Input – Low Output : You study a day before and want to pass. Here your effort is low and your marks are also low.

Low Input – High Output : Taking notes from a friend a week before, write down all important questions from a topic, analyze the question trend, pick the most important topic to be asked, Short notes. Here you exert smart approach

High input – Low Output : This section is a complete waste of productivity and time, You attend all lectures and playing games on smartphones. You went unprepared in lecture, neglecting assignment

High Input – High Output : Attending every lecture and doing every assignment. Doing revision daily.

From the above I guaranteed majority of you select the second option. Low Input – High Output method because our mind wants simple and easy solutions.

Second option is exactly the 80/20 section.

Before selecting the second option ask questions to yourself will selecting this makes me do better in academia and make me satisfied

IF yes, Then go for it.
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How to apply in three major pillars of life?

Lifestyle: What is your daily routine? Write them on a paper and pick out the most important one like meditation, exercise and do it first. Which makes your all other activities smoothly.

Thoughts: While meditating or doing any activities. Analyze your thoughts in which consider the 20% of thoughts which makes you positive all day and delineates the rest 80% negative one.

Relationship: What is your current relationship? How you can make bonds with others. Focus on that 20 % of people who make you positive and happy. And eliminate from the negative one.
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Must Buy Books Based on 80/20 Rules and Self-Development

World’s Greatest Books For Personal Growth & Wealth (Set of 4 Books): Perfect Motivational
The 80/20 Principle: The Secret to Achieving More with Less
The 80/20 Manager: Ten ways to become a great leader
Motivation: The Brian Tracy Success Library


These two methods of using the Pareto Principle is more than enough to make a decision, goal setting, increase productivity, make your things done.

The Pareto principle teaches you how and where you should invest your time to get maximum results. It promotes time management.

Either use “Pareto Principle” OR “I/O Box Method”.

Go and apply the principle in life to make more out of it.

Author's Bio: 

We're passionate about finding the proven ideas about Productivity, Life Growth, Social Skills and Personal Development. Want to know how to become successful in life. That's what we're here to help you with.