What Is 80-20 Formula: 80-20 formula will change your entire life! Be it investment or business, you will never lose a penny..

If you are an investor run your own business or are thinking of doing something new, then just adopt one formula in your life. It is called the Pareto Principle or the 80-20 formula. This single formula alone has the power to change your life. Whether it is about getting good returns by investing or starting your own business and achieving success in it. This 80-20 formula always makes you successful in all these things.

This formula tells that 80 percent of the results of your life come mostly from 20 percent of reasons or inputs. This simple but powerful formula can make you a game-changer. If it is applied in personal finance or investment, then you will never suffer a loss and will also get good returns. This formula also tells you a lot about the balance of life.

The formula was given by an Italian economist.
This principle is named after Italian economist Vilfredo Pareto. Pareto, in research done in the 19th century, found that 80 percent of Italy's land is occupied by only 20 percent of the people. Later, he applied this formula to other things as well and found that its result was surprising. Be it investment, decision, or business, Pareto made it the key to success everywhere.

Pay special attention to 4 things.

This formula of Pareto tells that 80 percent of your return is obtained from only 20 percent of your investment.

20 percent of your expenditure is the reason for 80 percent of your financial leakage and unnecessary expenses.

If you are a businessman, then 20 percent of your clients become the source of 80 percent of your income.

You have to choose financial strategies carefully to identify your 20 percent right investment.

He said that focus on that 20 percent skill, client, or product which can increase 80 percent of your income.

You will get relief from the burden of debt.

Pareto says that debt acts as a big barrier to your financial success. Identify those 20 percent debts which charge the highest interest. Credit cards and personal loans come with the highest interest in this. So first of all, repay your high-interest debt and try to consolidate all the debts in one place.

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