Richard Kotch authored The 80/20 Principle, and many books surrounding this helpful philosophy. His main point throughout his books is that 20 percent of input leads to 80 percent of the output. This is called the pareto principle or the 80/20 rule.
This idea is the basis for how to work smarter not harder and do a good job of it. If you focus on what is most important to get done to lead to the best results, then you will get a better outcome, because 20 percent of the work is giving you the biggest and best results. That is not always easy to do, which is why Kotch made such good profit giving tips. It can become second nature to find what leads to the best results and work on them, autopilot even, after you’ve practiced for a while.
There are many benefits across all ages and occupations for using this principle. From cleaning the house, to getting paperwork in in time for that deadline, even finally finding time to explore that hobby you’ve been looking into. This is also good for saving profit, and spending wisely.
It is important to have the mindset that you have an endless supply of time, but not money. The idea that you don’t have enough time is detrimental to some people, you always have more time, especially if you use that time wisely.
while saving a portion of your earnings is a key component of building wealth, the attitude and behavior surrounding money play a crucial role in distinguishing between being wealthy and being a miser. Wealthy individuals tend to have a balanced approach to money, while misers often prioritize saving to the detriment of their overall well-being and happiness.
Wealthy: Individuals who are wealthy often have a positive mindset about money. They view saving and investing as a means to achieve financial freedom, security, and the ability to enjoy life. They may spend on experiences, education, and opportunities that enhance their quality of life.
Miser: A miser typically has a negative or fearful mindset about money. They may hoard their wealth out of fear of losing it or a desire to accumulate more, often at the expense of their own happiness and well-being.
The distinction between being wealthy and being a miser often lies in the mindset and behavior associated with money management rather than just the act of saving itself.
Research and Comparison: Before making a significant purchase, do your research and compare options to ensure you’re making an informed decision.
Timing and Sales: Look for sales, discounts, or seasonal promotions. Sometimes waiting for the right time can save you money.