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 Illustration of the 80/20 Rule
- 3 Ray Dalio’s 80/20 Rule Post
- 4 Ray Dalio’s Key Takeaways About the 80/20 Rule
- 5 The 80/20 Rule: Theory and Applications
- 5.1 The 80/20 Rule Theory
- 5.2 Applications of the 80/20 Rule in Microsoft Excel
- 5.3 Applications of the 80/20 Rule in Google Sheets
Illustration of the 80/20 Rule
Ray Dalio’s 80/20 Rule Post
Ray Dalio’s Key Takeaways About the 80/20 Rule
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 Life and Business advice, look at the Valuables Principles by Ray Dalio for more insights.
The 80/20 Rule: Theory and Applications
The 80/20 Rule Theory
All the theory about the 80/20 rule or Pareto Principle can be found in details in our FAQ.
Applications of the 80/20 Rule in Microsoft Excel
Below are 3 Excel examples showing how you can apply the 80/20 Rule in Microsoft Excel:
Applications of the 80/20 Rule in Google Sheets
To highlight an 80/20 Pareto Distribution in Google Sheets via a Pareto Chart, follow this tutorial to build a Pareto Diagram in Google Sheets.
The 20 / 80 Rule Applied to Your Life to Maximise Well-Being
This article shows how to optimize your well-being with an 80/20 Approach.