<\/p>\n
This article, written by Keith Whelan, was recently posted on Wise Bread\u2019s personal finance site.<\/strong><\/p>\n A number of years ago, when I was working for a big company, we had a team of people working on a project with a\u00a0fairly\u00a0simple goal: to keep our customers longer.\u00a0 I knew someone on the team and I remember asking repeatedly \u2013 for over 2 years \u2013 how things were progressing.\u00a0 The typical reply was \u201cOh, this is very complicated.\u00a0 We\u2019re trying to classify every customer and predict when they are likely to leave us.\u00a0 Once we do that we will have to find out why they are likely to leave us.\u00a0 And then\u2026.\u201d\u00a0 That\u2019s when I usually changed the subject.<\/p>\n Needless to say, the project was never completed.\u00a0 All that time and effort wasted.\u00a0 I suggested to the colleague, \u201cWhy don\u2019t you just \u201880\/20\u2019 it?\u201d\u00a0 That is, first focus the effort on just the relatively small number of customers who generate the vast majority of profits for the company and deal with the remaining, less profitable customers later.\u00a0 \u00a0In fact, for most companies 80% of profits do come from only around 20% of its customers.<\/p>\n I like the 80\/20 Rule because it can help us manage <\/i>things more effectively.\u00a0 Things like our finances.\u00a0 Focusing on just a few high-impact assets and liabilities, and the cash flow associated with them, can pay handsome dividends.\u00a0 On the other hand, if you spend all or most of your time trying to micromanage hundreds of smaller daily expenditures…\u00a0\u00a0 Read the full article at:<\/strong> http:\/\/www.wisebread.com\/use-the-8020-rule-to-maximize-your-financial-opportunities<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" This article, written by Keith Whelan, was recently posted on Wise Bread\u2019s personal finance site. A number of years ago, when I was working for a big company, we had a team of people working on a project with a\u00a0fairly\u00a0simple goal: to keep our customers longer.\u00a0 I knew someone on the team and I […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10,9,17,16,3,13,11,8,7,46],"tags":[37,24,53,25,23,91,26,74,48],"class_list":["post-806","post","type-post","status-publish","format-standard","hentry","category-assets","category-cash-flow","category-financial-independence","category-financial-life-cycle","category-financial-planning","category-investments","category-liabilities","category-net-worth","category-retirement","category-wealth","tag-8020-rule","tag-cash-flow-2","tag-cashflownavigator","tag-financial-independence-2","tag-financial-life-cycle-2","tag-keith-whelan","tag-net-worth-2","tag-retirement-2","tag-wealth-2"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.cashflownavigator.com\/blog\/wp-json\/wp\/v2\/posts\/806","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.cashflownavigator.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.cashflownavigator.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.cashflownavigator.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.cashflownavigator.com\/blog\/wp-json\/wp\/v2\/comments?post=806"}],"version-history":[{"count":5,"href":"https:\/\/www.cashflownavigator.com\/blog\/wp-json\/wp\/v2\/posts\/806\/revisions"}],"predecessor-version":[{"id":939,"href":"https:\/\/www.cashflownavigator.com\/blog\/wp-json\/wp\/v2\/posts\/806\/revisions\/939"}],"wp:attachment":[{"href":"https:\/\/www.cashflownavigator.com\/blog\/wp-json\/wp\/v2\/media?parent=806"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.cashflownavigator.com\/blog\/wp-json\/wp\/v2\/categories?post=806"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.cashflownavigator.com\/blog\/wp-json\/wp\/v2\/tags?post=806"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}