How the Pareto Principle Solved a Major Problem for Two Clients

Most clients come to me seeking financial assistance, however, they often bring concerns that go beyond finances.

Recently, two clients approached me to improve their financial situations, both facing the challenge of unemployment at the time. 

While my expertise as a financial planner allows me to create personalized plans with investment goals for a more prosperous future, my approach goes beyond that. As part of my method, I apply a questionnaire based on the Pareto Principle, which aims to identify the primary causes of major concerns.

The Pareto Principle, also known as the 80/20 rule, highlights that approximately 80% of results come from just 20% of causes. Companies use this rule for various purposes, and on a personal level, I apply this approach to identify problems whose resolution can generate 80% of the desired results.

For these two clients, it became clear that the core issue was not financial but rather their job search. In these cases, I temporarily paused the financial planning work and referred them to colleagues specializing in career coaching.

The results exceeded expectations: in less than five sessions with the career coach, both clients secured employment and returned to financial planning with renewed motivation and the financial resources to implement what had been planned.

Conclusion: In situations where non-financial problems directly impact clients' financial stability, it is essential to apply holistic approaches, such as the Pareto Principle, to identify the areas of greatest impact for resolution. 

By recognizing and focusing efforts on the 20% of activities that are most relevant, significant results can be achieved, promoting positive change in your life.

Women solving problems