The 1 Percent Rule

James Clear recently wrote about why a few people get most of the rewards. He referenced the one percent rule first identified and written about by Vilfredo Pareto. This is also called the Pareto Principle.

Pareto was an Italian economist who wondered why a tiny number of pea pods in his garden produced the majority of the peas. He wondered if the same thing that was happening to his peas was also happening elsewhere in life. He studied statistics and found that 80% of the land in Italy was owned by 20% of the people. He learned that in Britain 30% of the population earned 70% of the income.

He continued his research and found that while the exact numbers varied from one topic to another the pattern held firm to almost everything. The majority of rewards seemed to always accrue to a small percentage of people. This became known as the Pareto Principle. It is also called the 80/20 rule. And it has been called the 1% rule.

This principle is seen in various places today. In the 2015-2016 National Baseball season 20% of the franchises won 75.3% of the championships. Two teams, the Boston Celtics and the Los Angeles Lakers won half of the championships in NBA history. Clear’s article cites many other examples.

Why does this happen? There may be more than one reason but one reason is the power of accumulative advantage. Once something starts to win it gains advantages over those that are not winning. It becomes stronger. It works in nature as well as Clear describes. This advantage plays out in each contest between the players or people.

Clear’s 1% rule is an application of the Pareto principle. If you can be 1% more effective than the competition you can win. Sustaining the habits that create that advantage leads to sustained success. This is just as applicable to the individual as it is to the business or other organization. Win by just a bit each time and you can build the momentum of being in that 20% that wins 80% of the return.

This observation explains why winners become bigger winners and why those who do not win find it harder to succeed. To sustain success then requires initial wins. You have to succeed to succeed. Success breeds success. A good thing to remember in any competitive endeavor.

Read James Clear’s complete article here.

Wishing you well,

Daniel R. Murphy
Educating people for building wealth, adapting to a changing future and personal development.

Will You Pay the Price?

Benjamin P. Hardy, a doctoral candidate in psychology, recently wrote a post on the on-line journal Thrive Global about achieving anything you want if you pay the price. Hardy’s premise is an old one. If you are willing to pay the price, sharpen your focus, stop wasting your time and say no to a lot of things you can pursue your dream and achieve what you wish to achieve.

Hardy is right. If you are willing to pay the price there is little you cannot achieve. But the more you want to achieve the higher the price. The price is what you must give up to attain what you want. Hardy glances over this aspect of the formula. Can you devote the time you want to devote to family and friends, to your favorite hobbies, and to other activities that are important to you, and still maintain that level of devotion required to attain your goal? That is the difficult question that anyone who has pursued a challenging goal has had to struggle with. It can be a very difficult struggle.

How badly do you want to achieve your goal? That is the question. You must say no to a great many things to achieve something great. Are you willing to do that? I have long found this question fascinating. I’ve seen many people pay the price and achieve the goal. Some of them believe it was well worth it, some regret the price they paid.

Hardy’s list of things you can achieve and the prices you must pay to achieve it are informative and inspiring. In the end though the answer to the question are you willing to pay the price can only be answered by you. It is an intriguing question for us all. How badly do you want what you think you want to achieve? How high a price are you willing to pay?

In the end you will only know if it was worth it if you try it. You must have the drive to achieve what you want and then the discipline to pay that price. Once you have paid that price and achieved that goal, only then can you know if it was worth it for you.

So how badly do you want to achieve your audacious goal? How high a price are you willing to pay to achieve it?

You can read Hardy’s post here and then think about what you want to achieve and what price you are willing to pay.

What do you think?

Wishing you well,

Daniel R. Murphy
Educating people for building wealth, adapting to a changing future and personal development.

The Incremental Formula for Success and Failure

The only thing more rare than instant failure is instant success. It does happen on rare occasion. But in almost every instance success and failure are the result of an incremental process that takes months or years to occur. The success philosopher Jim Rohn wrote:

“Failure is not a single, cataclysmic event. We do not fail overnight. Failure is the inevitable result of an accumulation of poor thinking and poor choices. To put it more simply, failure is nothing more than a few errors in judgment repeated every day.

Now why would someone make an error in judgment and then be so foolish as to repeat it every day? The answer is because he or she does not think that it matters.”

If you eat one doughnut your health will not fail. It will not kill you. And that is exactly what you think, one doughnut will not kill me. Nor will one cigarette or one day without exercise. One night of not enough sleep will not kill you. Failing to read a good book in three months will not lead to ignorance or failure. But repeat these things over and over and failure will result. Do the right things, eating that apple or getting enough sleep or getting exercise – do those things with regularity and success occurs.

The Formula for Failure

Rohn observed, “Failure’s most dangerous attribute is its subtlety. In the short term those little errors don’t seem to make any difference. We do not seem to be failing. In fact, sometimes these accumulated errors in judgment occur throughout a period of great joy and prosperity in our lives. Since nothing terrible happens to us, since there are no instant consequences to capture our attention, we simply drift from one day to the next, repeating the errors, thinking the wrong thoughts, listening to the wrong voices and making the wrong choices. The sky did not fall in on us yesterday; therefore the act was probably harmless. Since it seemed to have no measurable consequence, it is probably safe to repeat.

On their own, our daily acts do not seem that important. A minor oversight, a poor decision, or a wasted hour generally doesn’t result in an instant and measurable impact. More often than not, we escape from any immediate consequences of our deeds.”

The Formula for Success

Success is the result of the sustained practice of doing the right things. It is the result of disciplined repetition. Doing the right thing over and over leads to success. Doing one thing once is not what is required. The success mentality looks far into the future and recognizes that what we do regularly, what we do every day, leads to success, or failure.

This ability to look into the future and see the collective result of repeated efforts (or failures) is what distinguishes success from failure. Allowing oneself to be caught up in the instant moment and disregarding the long term cumulative effect of what we do leads to failure.

Jim Rohn left a treasure of wisdom like this.

Read Jim Rohn’s full article here.

Learn more about Jim Rohn and his teachings on personal development and creating wealth here.

Wishing you well,

Daniel R. Murphy
Educating people for building wealth, adapting to a changing future and personal development.

Achieve Anything in Just One Year by Jason Harvey

Book Review by Daniel R. Murphy

Title and Author:  Achieve Anything in Just One Year by Jason Harvey

Synopsis of Content:

Harvey has compiled in this book a daily meditation and inspiration for how to achieve more. For each day there is an inspirational quote from an author or leader, some questions to stimulate your thinking and a lesson which often requires you to do something.  There are 365 such pages, one for each day of a year. You can start any time as they are not tied to any dates.

While you could sit down and read this book through its real value is to use it one page per day for a year. Harvey challenges the reader to move beyond where they are now in life, even if they feel stuck, and to expand your potential and accomplish more.

Each day has a lesson and an assignment. Some of the assignments are generalized, challenging you to think in a different way or to interact with others in a different way. Other assignments are more specific challenging you to do one thing differently.

The book is part inspiration – and it is very inspirational – and part a book of exercises and lessons to move you forward in the areas where the author has found people most often stuck or lacking proper action or reflection. The book is also a day by day recipe for constant personal development.

Each page can be read in five minutes or less, and many only take a minute to read. The exercises and assignments however take more time – as much as you are willing to devote to make positive changes in your life.

It does not matter where you might be on your road to success and achievement nor does it really matter what you are attempting to achieve. It would serve people in business, in their private lives, or in any personal success path.

The book is not preachy but it does deliver valuable lessons that are classic success ideas. Harvey gives you a little push and what you do with that is entirely up to you.

What I did not like about this book:

The book would benefit from a table of contents and a good index. While the day by day progression is good the book contains a lot of wisdom that would be easier to access if it had a good index.

What I found useful about this book:

The daily quotations are real gems and come from many different sources. The book is almost worth its price just to get those quotes. The real value though goes far beyond the quotes. The inspirational lessons and the exercises are excellent day by day steps to make progress.

One of the book’s advantages is that you do not have to wade through hundreds of pages and then try to draw broad lessons from them. The daily format lets you move through the book gradually without spending more than five minutes a day reading.

After a year the reader will have covered 365 pages but more importantly the reader will have moved through a set of lessons and exercises that can change perceptions, beliefs, and patterns of thought and action.

Readability/Writing Quality:  

The book is well written and very easy to read. The day by day format slows you down and forces you to do what should be done with every good book on personal development and success – it forces the reader to understand, think about and use the book’s content. It is like having a one year success coach.

Notes on Author:

Jason Harvey is a certified life coach. He is founder of the Limitless Institute, a nonprofit organization dedicated to research on human potential. Harvey lives in Canada.

To read more about the author and about his purpose in writing this book read the Books2Wealth exclusive interview with Jason at: Interviews.

Related Website:

Three Great Ideas You Can Use:

  1. This book contains 365 ideas you can use, but for this review I will include just three: your power of choice more than your abilities define your potential. Look at the choices you make where they have led you. Consider that each choice you make defines your limits and your potential.
  1. “A missed opportunity is worse than a defeat”. Be alert to opportunity and be willing to seize it when it becomes apparent. So much is missed when we let opportunity pass by.
  1. “All things are difficult before they are easy”, Thomas Fuller. Resist the inner thinking that you are not good enough, smart enough or otherwise unable to do something. Stop limiting yourself. If you want to achieve something do the work and it can happen.

Publication Information:  

Title and Author: Achieve Anything in Just One Year by Jason Harvey

Copyright holder: 2010 by Jason Harvey

Publisher: Amazing Life Press, Canada

Wishing you well,

Daniel R. Murphy
Educating people for building wealth, adapting to a changing future and personal development.