How to use the 80/20 rule to Prioritize - Simple Time Management Ideas

I sit down. Turn on the Computer.

The smell of coffee hits my nose. Do I dare do it?

I take a peek at my to do list.

2 Pages A4.

I am immediatelly overwhelmed. A sense of dread hits me. How am I supposed to finish all those tasks?

I get up. Maybe it’s time for breakfast.

Do you get overwhelmed by your to-do list? I often did. I fact I got so overwhelmed I started procrastinating big time.

But guess what I still have a Master To-Do list (3 pages A4 and growing), but I don’t get so overwhelmed anymore. (At least most of the time) Instead I have continuously day after day worked and achieved my milestones.

Registered Business

Submitted my Businessplan

Moved first home and than to Korea

Grew Readers

One Technique I use besides my productivity system is the Pareto Principle for Time Management, better known as the 80/20 rule. You could also say you start with your most important tasks.

The principle is already more than 100 years old. It was created in 1895 by the famous Italian economist Vilfredo Pareto. It’s a timeless principle, applicable to any field you are in!

Benefits of Folllowing the 80 /20 Rule

The 80-20 Rule:

- - - - Cuts down your work time
        Makes you feel less stressed
        Increases your productivity
        Gives you information on where your revenue/results come from

What is the 80/20 rule?

Pareto explained it with the wealth division in Italy: 80% of the Italian wealth is owned by 20% of the population (investopedia).

In a business this means that 80% of revenue comes from 20% of the customers.

Now we know we have to concentrate on THE 20% and to build our relationship with those customers. But not only with customer 20 % of our efforts lead to 80% of our results.

What tasks are we focusing on that take a lot of time but have no big impact on the results?

The Pareto Principle or the 80-20 rule helps us evluate all the tasks we are doing or have to do. Which tasks are actually necessary to get the best outcome with the least effort?

The 80 / 20 Rule shows us how to get the fastest/best outcome with the least effort/resources.

What does the 80/20 rule mean for time management?

You can now use the Pareto Principle to organize your schedule and to prioritize your tasks to work the most efficiently:

Take out your to-do list and mark your tasks

A = high impact
B = medium impact
C = Low impact on success

Always work on your A-level tasks first.

How do you use the 80/20 rule to set goals?

Let's say you are a blogger or Sales Person:

Chose goals who have the highest impact on your Success:

For example many bloggers create fancy looking Pinterest header Pictures. But there is barely any benefit to your daily readers. Check which number 1 goal this month, this week, and today would have the highest impact on your success.

Chose goals with your Key Customers in Mind:

20% of our readers make 80% of our income, so we focus on them. What content do they like? Which design? In what topics are they interested and why? If 20% of our readers make 80% of our income than we can set up a clearer target group analysis to increase our popularity and revenue. Focus on them. Create content based on your core audience.

Is the 80 -20 Rule an Unchangeable Law? Pareto Debunked

Now before you think about your top 20% I have to clear a last misconception.

As you probably read 20% and 80% you figured it sums up to 100%. But the 80% is actually not set in stone. It can be 70% or 90%. So, for example, 20% of the reader can create 57% of your income or 89%.

“Applying the 80/20 rule might be beneficial to our lives in some cases, but using it without critiquing how distinct sets of rules apply and interact can easily mislead and negatively affect our personal and professional lives.” –Annisa RT

How you've probably already Used the Pareto Principle without knowing:

I am sure you have used the 80/20 rule already – in School:

Just think back when exams came up: Did you study every single paper your teacher has ever handed out? Or did you cut down your workload by guessing what’s on the test and what’s not?

Here, the rule is simple: 20% of your material is mainly on the test. Those 20% give you 80% of the points.

Look at these 11 examples of the 80/20 rule in real life:

20% of the input creates 80% of the result
Of all the products you sell 20% cause 80% of profits
20% of the workers produce 80% of the result
80% of your costs come from 20% of your expenses
20% of the bugs cause 80% of the crashes
During 20% of your day you achieve 80% of your tasks
20% of the features cause 80% of the usage
20% of seeds planted result in 80% of the flower
20% of your clothes are worn 80% of the time
80% of women on Dating Sites only really go after the top 20% of men
80% of your wants and needs come from a healthy relationship, 20% you need to provide for yourself (Time for a Self Care Night Routine I’d say ;))

Wrappping up:

Are there any further situations you have used the 80/20 rule before?

Now it is time for you to figure out where your 20% is and which tasks are important to build on those. In which area of your life do you want to apply the 80/20 rule?