Let’s do lunch at Italiannies

It’s almost lunch time now. How many of you like Italiannies? I love them when it comes to Italian food.

If you happen to be in Mid Valley during lunch time, now is the time to enjoy lunch special!

People aren’t prepared for rainy days

Today’s NST features a report on Citibank’s financial survey done in October 2008. The result concluded that Malaysians are not prepared to lose their job due to lack of savings. 21% of the respondents said that their savings could only last them a month.

We have heard it many times. The common financial advice given is to have at least 6 months savings for rainy days. How many of us actually do save? In the survey, 60% of respondents said they save 20% of their income, excluding the 11% deducated for EPF (Employees Provident Fund).

Once again I see the 80/20 rule in the result. The Pareto principle or 80-20 rule is like a principle in the universe. It says that the majority of results come from a minority of inputs.

Rather than trying to be a financial expert or an accountant, one can use the 80/20 rule as a general guideline. It may not be 100% accurate but you won’t be left high and dry for the least.

The point is you can often focus your effort on the 20% that makes a difference, instead of the 80% that doesn’t add much.

Last night I shared with a friend about putting aside some funds as money needed for upkeeping the equipments for his business. It is a business that requires equipments to be in tip-top condition. However, I did not mention the 80/20 rule to him. I hope that he will read this blog and apply this in his work and life in general.

Take a look at the titles below and see where and how people apply the Pareto principle.