80-20 rule!

Yesterday I mentioned about the 80-20 rule and some of you would be curious as to how do you apply the same to finance. When it comes to finance, the 80-20 rule suggests that 80% of your financial success comes from 20% of your financial habits. This means that there are a few key financial habits that have a disproportionate impact on your overall financial health. To apply the 80-20 rule to your finances, you need to identify the 20% of your financial habits that are most important. This might involve tracking your spending for a month or two to see where your money is going. Once you have identified your 20%, you can focus on improving these habits to see a significant improvement in your financial situation.