Posted by: yuenmun | October 2, 2007

The good old 80/20 rule

An Italian economist, Pareto created this rule to describe the wealth distribution in his country in 1906. It says that 20% of the wealth of a country is owned by 80% of the people. 80% of the wealth is owned by the remaining 20% of the people. Absurd? It is true even till today in big nation like the US.


Furthermore, it has been found that if the wealth of a country is recollected and redistributed equally so that every one has the same amount of money, the 80/20 phenomenon will appear again after few years. So the problem lies within our mind and not the wealth distribution.

Coincidence? Debatable. Find a company and look at their profit, 80% of the revenues comes from 20% of the marketing effort and hard work.

Why most of us are ordinary and not wealthy still? very likely because we still doing what the majority are doing. Obviously we will be like everyone else.

Of course, there will be people who do different things and they are those people who have a better chance of being different. It makes sense? Yet we always ask why they are so different. The reason is they start BECOMING different than us from the beginning.

So observe what you have done today, is it different from someone else? I know I am doing very different things than my peers now. Will I be successful and different? No one knows. But one thing for sure, I will not live a life just like everyone else.

So ask yourself, where you wan to be? in the 80% like everyone else or the 20%?

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