Read the latest Personal Finance article number 8 and discover the system i used to make my first internet marketing sale by CLICKING HERE.

One of the most common reasons why people cannot sleep restfully throughout the night is because of money. Well, actually, the lack of it.

Some people are working grave yard shifts to make ends meet while some are too poor to afford a decent bed in a quiet bed room in a safe neighborhood. Others are worried about business deals that have gone sour while some are crying over spilt milk when they remember missed golden opportunities.

On the other end of the scale are people unable to catch a wink because they think someone will steal their loot. While some people have acquired enough wealth and do not think about the things that money can buy, they still cannot rest well enough at night because they are not the richest at the golf club.

Whatever the reason, may be it is good question to know how much money will guarantee you a good night's sleep anywhere in the world.

A survey was conducted in 2008 among millionaires to determine at what level of wealth someone would be able to sleep soundly at night, in comfort and luxury, without thinking about money or what money will buy.

THE NUMBER IS 23 MILLION DOLLARS.

All the millionaires surveyed who were worth 23 million dollars and above stayed awake at night for other reasons but not money.

How do you measure up to this number?

Quote: You are only limited but your own imagination.

The Pareto Principle, also known as the 80-20 rule, was named after an Italian Economist, Vilfredo Pareto. Pareto observed that 80% of the wealth in Italy was owned by 20% of the population. Since then, very many observations have been seen to follow the 80-20 rule and Pareto's Principle has been used by the United Nations, Microsoft and other international giants. It is commonly stated that 80% of the effects come from 20% of the causes.

The principle follows from the fact that life does not distribute things evenly. Therefore, the way you allocate time, resources and effort has a pareto principle effect. For example:

1.  80% of your happiness comes from 20% of your activities

2. If you have a business, 80% of your profit will be generated from 20% of your customers. Also 80% of your complaints/calls will come from 20% of your customers

3. 80% of your telephone calls are to 20% of the numbers in your phone book.

The big lesson today is the realization that you only need to focus on the critical 20% that matter. You can therefore afford to ignore the trivial 80% and yet achieve 80% satisfaction.

Let me explain this in a simple way. Each day when you have to make decisions on what not to do, make sure you at least do the critical 20%. What this means is that you should identify the critical activities (20%) that produce the most value and focus on these.

What about the other 80% made of trivial activities? You can delegate these activities or automate them or delete them - they won't affect you much.

Homework.

1. Analyse the 20% critical activities that affect your personal finances. For example if you want to reduce your monthly expenditure, start by identifying the 20% expense items that contribute 80% of the total expenditure. Then work on trimming these expenses and you will see a big impact o

2. If your phone book is full, which numbers can you afford to delete with minimal regret? Send your answer to [email protected] and receive a surprise gift.

I am sure you were once introduced to a milionaire who appeared smart, sharp and admirable - before he spoke. After listening to him for a while and catching up on some gossip about him, the same millionaire lost his glamour and you wondered aloud to yourself, "Why is this idiot rich and i am not?"

If wealth had a simple, direct and obvious relationship to the level of intelligence (IQ), then every professor would be a millionaire and every idiot would be writhing in poverty.

How come some people like you who are good by nature, well-bred, never missed a day in school, and very hardworking are struggling pay-check to pay- check? How come some people who do not have manners, never attended afternoon classes and are ignorant of classical theories and national history revel in so much wealth?

Below I quote Charles Revson the founder of REVLON, a billion dollar health and beauty company.

"Look kiddie. I built this business by being a bastard. I run it by being a bastard. I'll always be a bastard, and don't you ever try to change me." — Charles Revson, founder of Revlon, to a senior executive within his company.

If you want to know some of the reasons wealth and riches have been dodging you lately, then read Robert Shemin's book, "Why is this idiot rich and i am not?"
This is our recommended book for October.

Story

Last week a close friend of mine narrated to me an incident which happened in his home, that I will gladly share with his permission.

Barrack Obama and John McCain had just finished their 90-minute presidential debate and political analysts were quick to go on air to dissect the debate and showcase their political acumen.

My friend Joe (not his real name) was closely following the analysis unfold as he lay horizontal on his favorite couch. His eyes were glued to the television set and his habitual 9p.m. cup of coffee was still cold and untouched. It lay on the coffee table like a deserted friend. His cell-phone was conveniently tucked beneath the cushions - he did not have the time to put it on vibration mode.

Joe was confident nothing in the world would interrupt him. His kids were asleep rehearsing their childish plays in dreamland. His wife was somewhere within the house - it did not matter where. 

Just then he noticed from the corner of his eye a shadowy figure float into the room. It settled right next to him, but he paid no attention. The political analysis required 100% of his attention. How else would he get enough material to boast about his political sharpness in the office the following morning?

Without notice and almost robotically, the shadowy figure slowly extended a limb and he felt the warmth of clammy fingers caressing his hairy chest. Startled and annoyed, Joe stared menacingly at the shadowy figure. Without thinking he blurted out, “Honey, please wait for the weather!” And he continued to listen to the news.

The shadowy figure was his dear wife. She coyly retreated and immediately disappeared into a dark and lonely bedroom.

Seconds later, the truth of his actions hit him like a brick. He immediately realized he had sacrificed the endless love of his wife and the friendship of ten years for a piece of news that will be repeated a hundred times on CNN. With a heart full of guilt, Joe reached for the red button on his remote control. He turned off the television and every light in the house. Then he picked enough courage to follow his wife to their pitch dark bedroom.

Lesson

Are there times in your financial life that you have sacrificed something very important so that you could have immediate gratification from something very unimportant? Like spending $200 a month on coffee and ignoring to insure your life with $300,000 for only $40 a month?

End.

Written for www.MyMoneyTips.Weebly.com by George Chege