EP 97: ER Docs, Use the 80-20 Rule to Master Your Finances!

There are several financial “rules of thumb.” Take not exceeding 28% of your gross pay on your mortgage payment or maintaining 6 months of spending as cash reserves, as examples. And while these may not be adequate for everyone, they can serve as a general guideline and promote action where otherwise action would not have been taken otherwise. In that sense, these guidelines carry positive influence.

In the same vein, on today’s episode we’ll discuss a principle that not only applies to personal finance, but bleeds into all aspects of life. It’s called the Pareto Effect.

Topics Discussed:     
  • How to allocate your resources efficiently.
  • The importance of evaluating your spending.
  • The benefit of identifying where you could limit your spending.
  • Why you shouldn’t sell in a market downturn.
  • The importance of delegating tasks that don’t make you happy.
  • How to improve your job satisfaction.
Resources Mentioned:


planning, financial planning, ER doctor, doctors, finances,