Broad vs. Narrow
How to know the next move.
Hello again, Squad.
The Really Rich Journal
A special thank you to our sponsors who keep this Journal free to readers:
🛠️ Think & earn like an entrepreneur in 5-days or less: Learn how think like an entrepreneur with a full week of hour-long lessons taught by Nicholas Crown. Get it HERE.
The Weekly Tone
Now, I'm not a betting man, unless you count my seven years on Wall Street... but let's not get into that now.
What I am, though, is a entrepreneur and an occasional goofball on TikTok. And in this world, knowing when to spread your bets and when to go all-in on one is the difference between success and a very expensive lesson in failure.
Allow me to introduce you to my dear friend, the Pareto Principle, or as it's more commonly known, the 80/20 rule. It's a simple concept: 80% of your results come from 20% of your efforts.
Now, I know what you're thinking. "Great, I'll just focus on that 20% and ignore the rest." Not so fast, my ambitious friend. The trick here is figuring out which 20% is the golden goose.
And that, my dear reader, is where the fun begins.
When starting a venture or investing, it's wise to spread out your bets. Diversify. It's like a buffet - you want to try a little bit of everything…except the salmon.
You don't know yet what's going to tickle your palate... or in this case, fill your pockets.
But, as time goes on, you'll start to notice a pattern. A certain dish - or venture - starts to outperform the others. That's your 20%. That's where the magic happens.
When you see your income and opportunities piling up in one area, that's your cue to shift gears. It's time to go all-in. Double down.
Order a second helping of those dumplings.
But remember, the key to this strategy is balance. Going all-in doesn't mean forgetting about the rest of your portfolio. It means focusing more of your resources on the top performer while still keeping an eye on the rest.
And, as with all things in life, this strategy isn't foolproof. Sometimes, your golden goose might just be a regular old goose with a good PR team. That's why it's crucial to regularly reassess and adjust your strategy.
Pay attention and listen to your gut when it perks up to tell you something’s amiss.
So, dear reader, may you find your 20% and make the most of it. And remember, whether you're at a buffet or in the world of entrepreneurship, moderation is key. Except for when it comes to my Halloween candy habits, but that's a newsletter for another day.
Rich: Put the blinders on.
Really Rich: Don’t double-down until you have proof.
🎙️ This Week On The Really Rich Podcast
Americans seems to be some of the most efficient over-spenders in the world. And can you blame us? We're bombarded with messages about luxury goods all day long while getting handed a little card that let's us spend and spend without having to worry about the bill until much later.
Today, I'll go through the top three worst money habits that are keeping you from living a happier, richer life. How many are you getting tricked into? It's not to late to make better decisions about how you spend (or save).
🤝 How I can help you:
The Entrepreneur’s Field Guide (Book) - learn the rules for entrepreneurship and how to blaze your own path.
The Guided Journey (Course) - I’ll be your personal guide on your path to success in my comprehensive digital lecture course
The Really Rich Podcast (Free) - a weekly deep dive into business, finance, and wealth mindset.