Sep 30, 2020
This Is How You Can Learn To Make Money Watching A Fishbowl
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This epiphany came to me just after receiving an “excellent” grade for researching this topic for a subject related to engineering economics. I learned so much from this phenomenon that now I have the ability to identify it in every action I take, and I see that it pays off, after all, it is a milestone in the field of economics.
I come from a Mexican coastal city where marine animals are one of the attractions and pillars of its economy. Thanks to that, I had the opportunity to witness the feeling of having a fish tank with its respective fish. This fish tank was bought for me when I was a child, my parents bought a dozen of them of the same species and the same size.
And there I was, enchanted by my new fish tank with those aquatic vertebrates where I did not take my eyes off them, day after night, I visited them and gave them their food according to their time. So far, nothing strange happens, in fact, nothing strange could happen, right?
After a month, my excitement for the fish had not diminished, in fact, I had noticed a phenomenon a bit “unfair.” I realized that only a little more than a couple of fish were bigger and fatter than the others, my doubt grew when the difference was already abysmal, I was witnessing what a dozen years later would help me achieve more than half of the achievements acquired at my age.
I witnessed a law of life.
Right after noticing this difference in fish sizes, I asked my parents about it, they immediately told me that it was because they ate more, but they did not pronounce the name of that phenomenon. I didn’t even know that the principle that was applied inside that fish tank even applies in control engineering or economics.
80/20 RULE
Inside the tank, every time I threw my handful of fish food, a competition would start between everyone to reach the most food.
Somehow, those handfuls of fish that were bigger than the others had gotten more food and became faster and more agile because they had the energy to spare. They got exponentially bigger to the point where they were almost unattainable by other competitors. Suddenly, these giant fish represented 80% of the food entered in a month. That is, 20% of the fish had 80% of the food inside.
What I had witnessed that month in my childhood was the same that the economist Vilfredo Pareto found at the end of the 19th century.
The first perception was about population and wealth. Pareto saw that approximately 80% of the property in Italy was claimed by 20% of the population. At that time, he made summaries of a variety of different nations and surprisingly found that this pattern was repeated in other areas.
When I received that excellent grade, I got the epiphany that I had already witnessed that effect in that fish tank, but I didn’t know at the time.
The remaining question here is: “What does this have to do with making money?”
We should take a gander at a model. Envision you have a day by day plan for the day with 10 activities consistently. Utilizing the Pareto rule, you need to make sense of what are the two most significant things that will give you most of your outcomes, and once you make sense of this, you need to burn through 80% of your energy on these two things and the lay on the staying 8 activities. This implies regardless of whether you don’t figure out how to finish the vast majority of the things you needed to do, you, at any rate, move the significant things.
This idea is exceptionally straightforward however, the manners in which you can apply it are perpetual.
The point here isn’t the numbers yet rather to disentangle your life and spotlight on the main thing
Regardless of whether it is 15/85 or 30/70, fluctuates between circumstances, the Pareto standard is an overall guideline. The central matter is that a minority of your exertion delivers most of your outcomes.
So, with this in mind, try to identify this principle in cause and effect events. Better yet, try applying it to your daily life. If you want to have a better body, focus on that 20% that will bring you 80% of the results, it can be the diet, the weight progress. Or maybe, focus on the 20% of your habits that result in 80% of your productivity to finish that business you have in mind.
