Word of the Day | Pareto's Law

Word of the day - Paretos Law

“Pareto's Law”, also known as the "80-20 rule," is a concept named after an Italian economist called Vilfredo Pareto. In simple terms, it suggests that in many situations, roughly 80% of the effects come from 20% of the causes.

For example, in a business context, it could mean that approximately 80% of your company's profits come from just 20% of your customers. Or, in personal life, it could mean that you wear 20% of your wardrobe 80% of the time.

This principle can be applied to various areas: sales, finance, time management, and so on. It helps us prioritize and focus on the most important 20% that can yield the biggest results or impact.

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