Awareness and practice of the 80/20 rule

Pareto 80/20 Principle

The 80/20 rule — the Pareto principal — says that 20 percent of your efforts will generate 80 percent of your income. The same principal applies to all other areas also and studies have shown it almost always happens.

For example Financial Freedom is influenced more by psychology than the actual mechanics of implementing a plan or idea. Anthony Robbins believes that 80% is based on psychology while the remaining 20% is influenced by the mechanics of implementation.

Like in sport, the best “financial athletes” have a certain belief, image, internal dialogue and behaviour set. This usually results in a winning outcome or at least leaves the athlete in a better position than they were at the outset.

Please note that we understand that may people may be in financial difficulties but this is about how the mind can and does adapt to certain ideas, patterns, false beliefs and negative images that make it difficult to escape financial hardship. Being aware of how this works gives you an added advantage immediately. Putting this into practice will help you develop the mindset of the rich.

Be aware of this and how it impacts your life plan. Use this workbook to help you focus on positivity.

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Joe Cunnane Practice Owner TRA Professional Services       Qualifications:  FCA Chartered Accountant & AITI Chartered Tax Advisor Joe has over 20 years experience working in both private practice and industry ... Read More »