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Here is an even more important implication of the 80/20 rule: The question then becomes, which of the income generating assets could be your 20%?

I’d argue that 80% of your passive income will come from 20% of your income generating assets. How is the 80/20 rule working in your life right now?īringing this back to our topic of today. Imagine what would happen if we used our knowledge of this principle to commit our resources to the 20%. It applies to most things but not everything. What we are looking at with the 80/20 rule is somewhat a law of nature. 80% of the traffic comes from 20% of the blog posts. You see this in churches – 80% of the donations come from 20% of the attendees. The Pareto Principle (80/20 rule) or the law of the vital few states that, for many events, roughly 80% of the effects come from 20% of the causes.įor example, in business, we know that roughly 80% of the sales come from 20% of clients.Ĩ0% of the income from football games comes from 20% of the super fans. In even simpler terms, assets exist to put money in your pocket today and tomorrow.Īn income-generating asset (or income-producing asset) helps you generate cashflow and over time, a Return On Investment (ROI).īut the type of income-generating asset that you invest in matters. They exist to help those who are future-minded achieve their goals. What are some good assets to start with?Īn asset is a source of future economic benefit. Frequently Asked Questions on Income Generating Assets.