The Pareto principle

Named after Italian economist Vilfredo Pareto, the Pareto principle broadly states 80% of the results come from 20% of the effort.

When it comes to your finances, do you know what that 20% is?

For example, is it a better use of your time to track all your expenses or sort out your 401(k) / superannuation?

📝 Track expenses vs 📈 401(k) / superannuation – an hour each week reviewing your expenses to shave off a few dollars here and there vs a few hours a year to potentially earn thousands of dollars

Do you save more money by cutting your takeaway coffee consumption or asking for lower home loan rate?

☕️ Coffee vs 🏡 home loan – save $3 x 365 = $1,095 each year vs a phone call / email to save 0.1% which could be worth thousands of dollars (depending on mortgage size)

If you knew what was most impactful, wouldn’t it make sense to focus your time and attention on the few things that really mattered?

(If you’re not sure where to start, how about taking a look at your 401(k) / superannuation 😊)