11 Ways To Save Fuel & Money In 2021

Following hefty fuel price increases this month – petrol by between 40c and 43c per litre, and diesel by between 54c and 55c a litre – cash-strapped and Covid-battered South African motorists have to find innovative ways to save fuel and money.

According to Bianca de Beer from Dialdirect Insurance: “An average increase of 48c per litre is steep on its own, but when coupled with the fact that a 60-litre tank already cost more than R800 to fill, this places a significant strain on motorists’ wallets.

 The good news is that with a few minor adjustments to your driving habits and with regular car maintenance, you can boost the fuel efficiency of your car by as much as 40%. If you fill up 48 times a year at roughly R900 per tank, a 40% reduction in fuel consumption could save you more than R17,000 a year.”

Dialdirect provides the following tips for better fuel economy:

1: Don’t skimp on servicing

A car can burn up to 30% more fuel if proper maintenance is not performed on a regular schedule.  With this in mind, make sure your car is serviced regularly. Things like worn spark plugs, worn rings, faulty injectors, sticky brakes, low coolant levels, dirty oil and dirty filters all add up to engine inefficiency which leads to increased fuel consumption.

2: Be wheel wise

Check your car’s wheel alignment. Bad wheel alignment causes more friction which takes more power to overcome and results in higher fuel consumption.

3: Keep tabs on tyre pressure: 

Check for underinflated tyres as these also increase resistance.

4: Use your AC sparingly

Use the air-conditioning only when necessary as it places additional load on the engine.

5: Remove unnecessary weight

Reduce the vehicle’s weight by removing unnecessary items and, if you mostly do city driving, consider driving with only half a tank of fuel.Five top motoring innovations of 2020From solar-powered cars to “see-through” bonnets, these clever ideas turned science fiction into realityGood Life1 week ago

6: Slow and steady wins the fuel economy race

Don’t speed. The gas-guzzling effects of “stepping on it” are well-known.

7: Avoid stop-start driving

Maintain momentum as far as possible by looking and planning ahead, flowing with traffic and timing your approaches to hills, traffic lights and crossings better.

8: Gear yourself for efficiency 

Drive at the lowest speed in the highest gear that the road and traffic conditions allow without laboring the engine.

9: Be tech-savvy

Many vehicles have economy settings to optimize performance, throttle response, ride height and so on for maximum fuel efficiency. Use them to your advantage.

10: Plan ahead

Do several tasks on one round trip as opposed to many shorter ones. This not only limits mileage and the amount of time it takes to get your chores done, but also keeps your vehicle’s engine running at optimal temperature.

11: Wait out the rush

Battling through traffic not only increases fuel consumption, but also wear and tear on your vehicle’s transmission and brakes.

De Beer said: “Saving on fuel by keeping your vehicle in shape and changing the way you drive may seem like a bit of a hassle, but if you increase your fuel economy by 40%, a tank that normally gets you 700km could get you close to 1,000 km. This translates to almost a tankful of savings for every two times you fill up.”

By : Motoring Staff

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Why Inheritance Is Mostly Overrated As A Reason For Wealth

Perhaps more than ever before, people claim that almost the only way to join the ranks of the rich is through inheritance. Apparently, in the good old days, it was still possible build a fortune from the ground up—but not anymore. Such claims discourage people who have set themselves the goal of becoming wealthy as entrepreneurs or investors.

The message, whether explicit or unspoken, is as clear as it is sad: “Don’t even bother trying—those days are long gone.” There are even so-called classism researchers who criticize the media for reporting on people who have ascended from humble beginnings to become rich. Such articles, the researchers claim, only perpetuate a false illusion that capitalism, in reality, can never live up to.

The Buddenbrooks: An Exemplary Tale

One measure of the percentage of the wealthy who are self-made is Forbes’ own Forbes 400 list.  In 1984, less than half the people on The Forbes 400 list of richest Americans were self-made. By 2018, in stark contrast, this same figure had risen to 67%.

The importance of inheritance is overestimated because, in reality, most heirs are unable to preserve let alone expand their assets. In 1901, the German writer Thomas Mann published one of his most celebrated novels, Buddenbrooks: The Decline of a Family, which tells the story of how a rich merchant family, the Buddenbrooks, slowly but surely squandered its fortune over the course of four generations.

As is so often the case, fact mirrors fiction, as demonstrated by the scientists Robert Arnott, William Bernstein and Lillian Wu in their research paper “The Myth of Dynastic Wealth: The Rich Get Poorer.” Their key findings include the following: “The average wealth erosion for the 10 wealthiest families of 1930, 1957, and 1968… was 6.6 percent, 5.3 percent, and 8.7 percent, respectively. These figures correspond to a half-life of wealth—the length of time it takes for half of the family fortune to be redistributed within society through taxation, spending, and charitable giving—of 10 years, 13 years, and (remarkably) 8 years, respectively.”

Great Ideas And Personality Traits Are Not Necessarily Passed On To The Next Generation

One glance at the list of the richest people in the world is enough to see that the vast majority—insofar as they have not inherited their wealth—have earned their fortunes as entrepreneurs. And according to the findings of entrepreneurship research, successful entrepreneurs become rich because they have a very specific combination of personality traits. However, these personality traits cannot simply be passed on to the next generation.

The super rich became rich because they had incredibly good ideas. Why is it that Jeff Bezos, Bill Gates, Mark Zuckerberg, Sergej Brin and Larry Page are among the richest people in the world? Because they had great ideas, founded Amazon, Microsoft, Facebook and Google and knew how to turn them into extremely profitable companies. It’s very unlikely that their children will have the same personality traits or such brilliant ideas.

Left-wing economists, such as the Frenchman Thomas Piketty, believe that the rich have access to particularly profitable investments—some would even call them a license to print money—which allow them to automatically increase their wealth even without their own entrepreneurial ideas.

Just like left-wing anti-capitalists, family offices that earn their money by promising to increase the wealth of rich families have a vested interest in maintaining the myth that there are secret, extremely lucrative investment opportunities that are reserved only for the superrich. This is, after all, the basis of their entire business model. But there are very good reasons to doubt that this is the case. It is more likely that most of these exclusive asset managers deliver even worse results for their superrich clients than an average investor would achieve by investing in an index fund.

For example, hedge funds have enjoyed an almost legendary reputation as the super-secret weapons of the rich for many years. And yes, some hedge funds have achieved extremely high returns, for which they have received a great deal of celebratory media attention. On average, however, they have performed worse than an index fund that absolutely anyone can buy on the internet. In 2007, Warren Buffett entered a million-dollar bet with fund manager Protége Partners that the S&P 500 Index would outperform a portfolio of hedge funds over the next ten years.

Buffett was right and donated his winnings to Girls Incorporated of Omaha. The S&P 500 Index fund in which he invested delivered a compound annual return of 7.1%, outperforming the return on the funds selected by Protégé Partners (2.2%). The extent of the difference is really put into perspective when you compare the actual monetary returns: Anyone who invested a million dollars in hedge funds before 2008 would have made a profit of $220,000 by 2017. S&P 500 investors, on the other hand, would have collected $854,000. So much for the supposed license to print money and “secret weapons” of the super rich.

How People Inherit Money And Lose It Again

Many rich heirs could actually live very well off their inheritances if only they followed the advice Warren Buffett has already given his wife for when she inherits (a minor part) of his fortune: Simply invest the money in an index tracker fund. But most people think they are smarter and believe they can make particularly canny investments—which all too often turn out to be flops.

Or they inherit a company but do not have the entrepreneurial talent of their predecessors. Others overestimate themselves, start new companies and lose money. Still others go through expensive divorces or simply spend far more each year than their inheritances would sensibly allow. There are countless examples that show just how difficult it is to manage an inheritance. Many heirs have more in common with lottery winners who, by a stroke of luck, win massive fortunes, but lose them again because they lack the requisite skills to handle money.

Welcome To The Self-Made Billionaires’ Club, Jay Z

In reality, the chances of getting rich, even at a young age or as someone who comes from a humble background, have never been so good. Recent headlines have trumpeted the fact that Jay Z, who was raised by a single working mother, has become the world’s first hip-hop billionaire and the latest member of the Self-Made Billionaires’ Club.

Of course, very few people will ever make it quite so far. But what helps more? Telling someone “You have no chance anyway. If you don’t inherit money, you’ll never get rich,” or, “Forget it! Capitalism only makes the rich even richer.” Or saying, “You probably won’t become a billionaire, but look at the people who started out at the very bottom and made it to the top. Seize your opportunities!”

Check out my website.

I was awarded my first doctorate in history in 1986 and my second, this time in sociology, in 2016. I started my career at the Central Institute for Social Sciences Research at the Free University of Berlin and went on to become department head at one of Germany’s leading daily newspapers, Die Welt. In 2000, I founded my own company, which I established as the market leader in the field of communication consultancy for real estate companies in Germany, with a roster of clients that included Ernst & Young Real Estate, CBRE and Jamestown. I sold the company in 2016 and have focused on academic research and writing books ever since. In total, I have written and edited 22 books, the most recent of which are The Wealth Elite and The Power of Capitalism. My books on the psychology of success and wealth have been translated into a host of languages and have enjoyed notable success in China, India and South Korea. I am also a regular contributor to numerous prestigious European media outlets, including the Neue Zürcher Zeitung in Switzerland, The Daily Telegraph in the UK and the Frankfurter Allgemeine Zeitung in Germany.

Source: Why Inheritance Is Mostly Overrated As A Reason For Wealth

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If you’re stuck paying off credit card debt and balancing two jobs, the idea of having extra money to spend on vacations and luxury cars may seem like a pipe dream. But honestly, acquiring wealth is simply about sacrifices. What would you be willing to give up? Sleeping in on the weekends? Ohhh, that one hurts! It’s ideal to get 7 to 8 hours of sleep, but working hard at your craft or career often requires sleepless nights. Entertainment like movies, TV shows, concerts also waste valuable time. And your money, too. And what about family life? What if you dream of having a wedding and lots of kids? It’s all about prioritizing. Yeah, that’s tough! But let’s try to figure out how you can deal with all that. Other videos you might like: 7 Main Differences Between Rich and Poor People https://www.youtube.com/watch?v=gsTjM… Salaries of 13 Country Leaders — From $1 to More Than $2 Million https://www.youtube.com/watch?v=Oq7Mq… 14 Facts About Money You Should Know by Age 30 https://www.youtube.com/watch?v=dLbBF… TIMESTAMPS: Boredom 0:48 Family life 2:09 A flashy lifestyle 3:18 Sleep 4:03 Distracting entertainment 5:03 Predictability 6:06 Making life cushy 7:03 Caring about what other people think 8:06 #wealth #richpeople #success Music by Epidemic Sound https://www.epidemicsound.com/ SUMMARY: – You know those days where you have nothing to do, so you just binge watch your favorite Netflix show until you begin to melt into your couch? Instead of wasting this free time, use it to acquire a new skill. – Wealthy people often value self- improvement and are always trying to make the most of themselves. Often this means learning a new skill that you can use to make more money in the future. – As you’ve probably come to realize, financial success doesn’t just happen. Unless you were born into extreme wealth like Paris Hilton, you need to devote lots of time to working on your business and lifestyle to achieve the level of wealth you want. – Sure, there are plenty of rich people who love flaunting their wealth, but they didn’t get to that level of financial freedom by doing so. Don’t spend money on things you don’t really need. – Billionaire Elon Musk says he sleeps only about 6 hours a night – and he’s already made his money. But if you’re one of those people who really needs time to rest when they’re working hard – you know, as most humans do – then you can schedule your rest just like you would important meetings or deadlines. – Think about it: in one month, going to the movies a couple times, and maybe a concert or two can literally cost you hundreds of dollars, not to mention the fact that it took up tons of your time. – If you want to be rolling in the big bucks one day, you’ve got to let go of the idea that you’ll live a stable, comfortable life. Part of earning success is being able to take advantage of opportunities as they’re presented to you. – The sacrifices may seem insignificant, but it really adds up and you’re better off putting that money toward growing your business or whatever other goals you’re trying to reach. – Life isn’t like high school – it’s not a popularity contest! If people don’t like you, you shouldn’t stress too much about it. While it’s important to be respectful of others, there’s no need for you to go out of your way to appease them, especially if it hinders your growth. Subscribe to Bright Side : https://goo.gl/rQTJZz —————————————————————————————- Our Social Media: Facebook: https://www.facebook.com/brightside/ Instagram: https://www.instagram.com/brightgram/ 5-Minute Crafts Youtube: https://www.goo.gl/8JVmuC Stock materials (photos, footages and other): https://www.depositphotos.com https://www.shutterstock.com https://www.eastnews.ru —————————————————————————————- For more videos and articles visit: http://www.brightside.me/

How to Overcome the Fear, Doubt, and Anxiety That Inhibit Growth

Perhaps you want to be a better coder, a better writer, or a better musician. Perhaps you want to start a new business or begin an exercise program. You are full of good intentions, but your efforts seem to sputter out. You’re not alone.

When you work towards a meaningful goal, expect to face “a repelling force.” Steven Pressfield calls it “Resistance.” In his journey of becoming a best-selling author, Pressfield came to know well the many faces of Resistance.

In his book The War of Art, he explains the aim of Resistance “is to shove us away, distract us, prevent us from doing our work.” Pressfield warns, Resistance arises whenever we attempt “any act that derives from our higher nature instead of our lower.”

Pressfield shares this insight:

Most of us have two lives. The life we live, and the unlived life within us. Between the two stands Resistance.

Pressfield spells out the mindset of a professional and that of an amateur. The amateur gives in to Resistance, placing blame for unmet goals on life circumstances—their upbringing, their partner or lack of one, their busy schedule, and on and on.

Using external circumstances to rationalize our lack of progress is self-defeating. Pressfield instructs,

Resistance arises from within. It is self-generated and self-perpetuated… Rationalization is Resistance’s spin doctor.

Did you procrastinate today? Again, you’re not alone. Pressfield writes,

Procrastination is the most common manifestation of Resistance because it’s the easiest to rationalize. We don’t tell ourselves, “I’m never going to write my symphony.” Instead, we say, “I am going to write my symphony; I’m just going to start tomorrow.”

Resistance, Pressfield warns, “will tell you anything to keep you from doing your work. It will perjure, fabricate, falsify; seduce, bully, cajole.” Living with our self-deception, “we feel like hell,” there is constant low-grade unhappiness and misery.

Succumbing to Resistance, most of us have experienced the feelings Pressfield describes:

We’re bored, we’re restless. We can’t get no satisfaction. There’s guilt but we can’t put our finger on the source.

If you think your stars have to align to beat Resistance, you’re wrong. What happens after you get a new desk and new computer? What happens after you find a quiet apartment or house, live with a supportive partner, and find a great job with a supportive boss? Resistance won’t retreat merely because you have changed your circumstances. When you’re still not ready to do your work, notice how your excuses morph.

There is nothing wrong with you. Everyone faces Resistance. Fear, self-doubt, and anxiety never fully go away. Resistance is always there in full force when we entertain its bad advice. Professionals realize these thoughts will fade away if they turn toward their work.

Amateurs resist Resistance, which only tightens its grip. Pressfield writes,

Resistance has no strength of its own. Every ounce of juice it possesses comes from us. We feed it with power by our fear of it.

“The professional knows,” Pressfield counsels, “that Resistance is like a telemarketer; if you so much as say hello, you’re finished.” Heed his advice. Pressfield wrote The War of Art before smartphones were drawing our attention from our work. If you are constantly checking your phone while you are doing your work, Resistance will beat you. (Watch for my follow-up essay, “How to Break Your Digital Addiction”)

It took me years to learn a simple truth: To beat Resistance, show up and keep a regular schedule, whether or not you feel like it. The amateur thinks their feelings are providing important information; the professional knows they need to think about doing their work, not themselves. Pressfield shares this anecdote:

Someone once asked Somerset Maugham if he wrote on a schedule or only when struck by inspiration. “I write only when inspiration strikes,” he replied. “Fortunately it strikes every morning at nine o’clock sharp.”

According to Pressfield here are three clear signs of an amateur:

One, he doesn’t show up every day. Two, he doesn’t show up no matter what. Three, he doesn’t stay on the job all day. He is not committed over the long haul; the stakes for him are illusory and fake.

Amateurs cast themselves as victims. Pressfield pointedly observes those playing the victim role seek

to achieve gratification not by honest work or a contribution made out of one’s experience or insight or love, but by the manipulation of others through silent (and not-so-silent) threat.

Pressfield adds,

Resistance knows that the more psychic energy we expend dredging and re-dredging the tired, boring injustices of our personal lives, the less juice we have to do our work.

Have you had a bad break? Get back to work. Pressfield explains,

The professional conducts his business in the real world. Adversity, injustice, bad hops and rotten calls, even good breaks and lucky bounces all comprise the ground over which the campaign must be waged. The field is level, the professional understands, only in heaven.

Doing your work comes with no guarantees of success. Are you having “grandiose fantasies” of how the world will receive your work? That’s the sign of an amateur mindset. Pressfield observes,

Resistance knows that the amateur composer will never write his symphony because he is overly invested in its success and overterrified of its failure. The amateur takes it so seriously it paralyzes him.

I write almost every day. If I don’t show up, seeking to improve my technique, Resistance will kick my butt. Resistance will kick yours too, if you don’t practice. Be a professional; do your work.

Pressfield makes it clear, if you are seeking inspiration, begin by “mastering technique.” Toil “beside the front door of technique, [leave] room for genius to enter by the back.”

“Everything in life worth achieving requires practice,” writes Thomas Sterner in his book The Practicing Mind: Developing Focus and Discipline in Your Life. Sterner provides an excellent definition of practice:

When we practice something, we are involved in the deliberate repetition of a process with the intention of reaching a specific goal.

Sterner makes clear,

Good practice mechanics require deliberately and intentionally staying in the process of doing something and being aware of whether or not we are actually accomplishing that.

Here is the rub: The only way we can effectively practice is to suspend our attention to our goals. Sterner explains,

When you focus your mind on where you want to end up, you are never where you are, and you exhaust your energy with unrelated thoughts instead of putting it into what you are doing.

We torture ourselves by remembering past failures or dreams of future success. Our mind isn’t present, and our efforts are diluted. Sterner discerns, frustration results:

[W]hen your mind is only on the finished product, not only do you feel frustrated in every second that you have not met that goal, but you experience anxiety in every “mistake” you make while practicing. You view each mistake as a barrier, something delaying you from realizing your goal and experiencing the joy that reaching that goal is going to give you.

To a professional, the process they follow to reach their goal is not a nuisance. Process is a necessity that amateurs overlook. Amateurs are fixated on the goal, professionals

continue to use the final goal as a rudder to steer [their] practice session, but not as an indicator of how [they] are doing.

Sterner advises us to avoid comparisons. Using the metaphor of a flower’s development, Sterner asks, “At what point in a flower’s life, from seed to full bloom, does it reach perfection?” We can’t proceed to “full bloom” and skip the process. Comparing our lives to “ideal images” will create unhappiness:

Do you think that a flower seed sits in the ground and says, “This is going to take forever. I have to push all this dirt out of my way just to get to the surface and see the sun. Every time it rains or somebody waters me, I’m soaking wet and surrounded by mud. When do I get to bloom? That’s when I’ll be happy; that’s when everybody will be impressed with me. I hope I’m an orchid and not some wildflower nobody notices. Orchids have it all . . . no, wait; I want to be an oak tree. They are bigger than anybody else in the forest and live longer, too.”

Seeking perfection is an amateur’s false goal, steering us away from our process. Sterner writes, “Our impatience to reach some false goal that will not make us any happier than we are right now.” Absorbed in what we are doing, impatience “fades away.”

Go pro, face Resistance; watch your commitment to a process pay compound interest.

You know when you are not in process mode. Your mind is flitting all over the place. Should haves, could haves, would haves come and go. Resisting the process, you are sure—like everyone else in the grip of an amateur mindset—the world is to blame for your lack of focus and progress.

You won’t find more than fleeting happiness by reaching a goal. Instead, go pro, face Resistance; watch your commitment to a process pay compound interest. You’re may be in the valley today but progress up the side of the mountain occurs one step at a time.

 

Source: How to Overcome the Fear, Doubt, and Anxiety That Inhibit Growth

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This video will show you how to deal with anxiety at work by addressing the #1 cause of all your anxiety at work. Get relief. — Want help? I do 1-on-1 Counseling on Skype: http://www.liveinthemoment.org/session/ — Get my FREE 40 page e-book: http://www.liveinthemoment.org/free-e… — Check out my #1 Amazon Bestseller: http://www.amazon.com/gp/product/B00A… — Use my FREE web app “The 5 Steps”: http://www.liveinthemoment.org/the-5-… Noah Elkrief This video is about how to deal with anxiety at work, and how to handle anxiety at work. If you have been dealing with anxiety at work, it most likely seems as though the anxiety is created by your job, your co-workers, or your boss. But, in any moment that you don’t think about any of these, you will experience no anxiety at work. If your anxiety at work was caused by the facts of your situation, then you would feel anxiety in every moment at work. If you want to know how to deal with anxiety at work, or get anxiety relief, you first have to recognize that your anxiety is created by your thoughts and not by the facts. The next step for how to deal with anxiety at work is to recognize that your actions at work are not who you are.

 

Why You Should Spend Your Money On Experiences, Not Things

When you work hard every single day and there’s only so much money left after your regular expenses, you have to make certain it’s well spent. Spend your limited funds on what science says will make you happy.

The Paradox Of Possessions

A 20-year study conducted by Dr. Thomas Gilovich, a psychology professor at Cornell University, reached a powerful and straightforward conclusion: Don’t spend your money on things. The trouble with things is that the happiness they provide fades quickly. There are three critical reasons for this:

• We get used to new possessions. What once seemed novel and exciting quickly becomes the norm.

• We keep raising the bar. New purchases lead to new expectations. As soon as we get used to a new possession, we look for an even better one.

• The Joneses are always lurking nearby. Possessions, by their nature, foster comparisons. We buy a new car and are thrilled with it until a friend buys a better one—and there’s always someone with a better one.

“One of the enemies of happiness is adaptation,” Gilovich said. “We buy things to make us happy, and we succeed. But only for a while. New things are exciting to us at first, but then we adapt to them.”

The paradox of possessions is that we assume that the happiness we get from buying something will last as long as the thing itself. It seems intuitive that investing in something we can see, hear, and touch on a permanent basis delivers the best value. But it’s wrong.

The Power Of Experiences

Gilovich and other researchers have found that experiences—as fleeting as they may be—deliver more-lasting happiness than things. Here’s why:

Experiences become a part of our identity. We are not our possessions, but we are the accumulation of everything we’ve seen, the things we’ve done, and the places we’ve been. Buying an Apple Watch isn’t going to change who you are; taking a break from work to hike the Appalachian Trail from start to finish most certainly will.

“Our experiences are a bigger part of ourselves than our material goods,” said Gilovich. “You can really like your material stuff. You can even think that part of your identity is connected to those things, but nonetheless they remain separate from you. In contrast, your experiences really are part of you. We are the sum total of our experiences.”

Comparisons matter little. We don’t compare experiences in the same way that we compare things. In a Harvard study, when people were asked if they’d rather have a high salary that was lower than that of their peers or a low salary that was higher than that of their peers, a lot of them weren’t sure. But when they were asked the same question about the length of a vacation, most people chose a longer vacation, even though it was shorter than that of their peers. It’s hard to quantify the relative value of any two experiences, which makes them that much more enjoyable.

Anticipation matters. Gilovich also studied anticipation and found that anticipation of an experience causes excitement and enjoyment, while anticipation of obtaining a possession causes impatience. Experiences are enjoyable from the very first moments of planning, all the way through to the memories you cherish forever.

Experiences are fleeting (which is a good thing). Have you ever bought something that wasn’t nearly as cool as you thought it would be? Once you buy it, it’s right there in your face, reminding you of your disappointment. And even if a purchase does meet your expectations, buyer’s remorse can set in: “Sure, it’s cool, but it probably wasn’t worth the money.” We don’t do that with experiences. The very fact that they last for only a short time is part of what makes us value them so much, and that value tends to increase as time passes.

Bringing It All Together

Gilovich and his colleagues aren’t the only ones who believe that experiences make us happier than things do. Dr. Elizabeth Dunn at the University of British Columbia has also studied the topic, and she attributes the temporary happiness achieved by buying things to what she calls “puddles of pleasure.” In other words, that kind of happiness evaporates quickly and leaves us wanting more. Things may last longer than experiences, but the memories that linger are what matter most.

What makes you happier, experiences or things? Please share your thoughts in the comments section below as I learn just as much from you as you do from me.

I am the author of the best-selling book Emotional Intelligence 2.0 and the cofounder of TalentSmart, a consultancy that serves more than 75% of Fortune 500 companies and is the world’s leading provider of emotional intelligence tests and training (www.TalentSmart.com). My books have been translated into 25 languages and are available in more than 150 countries. I’ve written for, or been covered by, Newsweek, BusinessWeek, Fortune, Forbes, Fast Company, Inc., USA Today, The Wall Street Journal, The Washington Post, and The Harvard Business Review. I’m a world-renowned expert in emotional intelligence who speaks regularly in corporate and public settings. Example engagements include Intel, Coca-Cola, Microsoft, Fortune Brands, the Fortune Growth Summit, The Conference Board: Learning from Legends, and Excellence in Government. I hold a dual Ph.D. in clinical and industrial-organizational psychology. I received my bachelor of science in clinical psychology from the University of California – San Diego.

Source: Why You Should Spend Your Money On Experiences, Not Things

The 80/20 Rule And How It Can Change Your Life

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What is the 80/20 Rule and could it actually make 80% of your work disappear?

If you’ve studied business or economics, you’re well familiar with the power of the Pareto Principle.

The Man Behind The Concept

Vilfredo Federico Damaso Pareto was born in Italy in 1848. He would go on to become an important philosopher and economist. Legend has it that one day he noticed that 20% of the pea plants in his garden generated 80% of the healthy pea pods. This observation caused him to think about uneven distribution. He thought about wealth and discovered that 80% of the land in Italy was owned by just 20% of the population. He investigated different industries and found that 80% of production typically came from just 20% of the companies. The generalization became:

80% of results will come from just 20% of the action:

Pareto’s 80/20 Rule

This “universal truth” about the imbalance of inputs and outputs is what became known as the Pareto principle, or the 80/20 rule. While it doesn’t always come to be an exact 80/20 ratio, this imbalance is often seen in various business cases:

• 20% of the sales reps generate 80% of total sales.

• 20% of customers account for 80% of total profits.

• 20% of the most reported software bugs cause 80% of software crashes.

• 20% of patients account for 80% of healthcare spending (and 5% of patients account for a full 50% of all expenditures!)

On a more personal note, you might be able to relate to my unintentional 80/20 habits.

I own at least five amazing suits, but 80% of the time or more I grab my black, well-tailored, single-breasted Armani with a powder blue shirt. (Ladies, how many shoes do you own, and how often do you grab the same 20%?)

I have 15 rooms in my house, but I spend about 80% of my time in just my bedroom, family room, and office (exactly 20%).

I’m not sure how many miles of roads are in the small town where I live, but I bet I only drive on 20% or less of them, as I make daily trips to my kids’ schools, the grocery store, the bank and gas station.

On my smartphone, I have 48 different mobile apps pinned to the tiles, but 80% of the time I’m only using the eight on my home screen.

When I go grocery shopping, I definitely spend the most time in the aisles that are around the edges of the store: produce, the fish market, dairy, breads—and generally skip the aisles in the middle of the store (except for health and beauty).

As a massive introvert, I don’t actually socialize too much, but when I do, 80% of my time is spent with the same 20% of my friends and family members.

In my research into the productivity habits of high achievers, I interviewed hundreds of self-made millionaires, straight-A students and even Olympic athletes. For them, handling every task that gets thrown their way—or even every task that they would like to handle—is impossible. They use Pareto to help them determine what is of vital importance. Then, they delegate the rest, or simply let it go.

How You Can Use It

So how can you apply Pareto’s principle to gain more time in your life?

Are you an executive? You’re surely faced with the constant challenge of limited resources. It’s not just your time you need to maximize, but your entire team’s. Instead of trying to do the impossible, a Pareto approach is to truly understand which projects are most important. What are the most important goals of your organization, or boss, and which specific tasks do you need to focus on to align with those goals. Delegate or drop the rest.

Are you a freelancer? It’s important to identify your best (and highest-paying) clients. Of course, you don’t want all your eggs in one basket. But too much diversification will quickly lead to burnout. Focus on the money makers and strengthening those long-term relationships.

Are you an entrepreneur? The temptation always exists to try the new and exciting. There’s nothing inherently wrong with that, but it boils down to your goals. Are you trying to grow your current business? Would an 80/20 mindset help you to stay focused on your strategic plan and spend less time chasing endless new opportunities?

No matter what your situation, it’s important to remember that there are only so many minutes in an hour, hours in a day, and days in a week. Pareto can help you to see this is a good thing; otherwise, you’d be a slave to a never-ending list of things to do.

So, what 20% of your work drives 80% of your outcomes?

 

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