The famous American hedge fund billionaire Ray Dalio made this brilliant post about the 20/80 Rule which is also sometimes called the Pareto Rule or the Pareto Law:
The 80/20 Rule
The 80 20 Rule states that you get 80 percent of the value out of something from 20 percent of the information or effort. (It’s also true that you’re likely to exert 80 percent of your effort getting the final 20 percent of value.)
– Ray Dalio
Table of Contents
- 1 The 80/20 Rule
- 2 The 80/20 Rule: Illustration
- 3 The 80/20 Rule: Ray Dalio’s Post
- 4 The 80/20 Rule: Key Takeaways
- 5 The 80/20 Rule: Theory and Examples
- 6 The 80/20 Rule: Pareto Excel Tutorial And Examples
- 7 The 80/20 Rule: Highlight a 80/20 Pareto Distribution in Google Sheets via a Pareto Chart
- 8 The 80/20 Rule: 80/20 your Life to Maximise your Well-Being
The 80/20 Rule: Illustration
The 80/20 Rule: Ray Dalio’s Post
The 80/20 Rule: Key Takeaways
Understanding this rule saves you from getting bogged down in unnecessary detail once you’ve gotten most of the learning you need to make a good decision. Remember the 80/20 Rule and remember what the key 20% is.
– Ray Dalio
If you like this kind of Life and Business advice, we encourage you to have a look at Principles by Ray Dalio.
The 80/20 Rule: Theory and Examples
If you want to learn more about the 80/20 rule or Pareto Principle in details, we invite you to visit our FAQ.
The 80/20 Rule: Pareto Excel Tutorial And Examples
Below are 3 Excel examples showing how you can apply the 80/20 Rule in Microsoft Excel:
The 80/20 Rule: Highlight a 80/20 Pareto Distribution in Google Sheets via a Pareto Chart
To learn how to build a Pareto Diagram in Google Sheets and visualize any 80/20 Pareto Distribution in Google Sheets follow this easy 2-macro-step tutorial:
The 80/20 Rule: 80/20 your Life to Maximise your Well-Being
This article shows how to optimise your well-being with an 80/20 Approach. Take control of your well-being now!
TABLE OF CONTENT