Saturday, December 26, 2009

80-20 Rule for allocating time in building up passive incomes

I have set up my life time table as shown above. My total work time for my main job is 50 hours, and the time for building my passive income is 13 hours. Based on the total of 63 working hours per week, 80% will be used for my main job, and 20% will be used for building up my passive income. Somehow it matches nicely to the Pareto's Principle - The 80-20 Rule. The 80-20 Rule means that in 20% of anything is vital and 80 percent of anything is trivial. It is true that the time used for building up my passive income is more important than the time used for my main job.

The main purpose of setting my life time table is split my working time and family time so that I can take care of both my work and my family. The passive income time is currently used to slowly build up my passive income 4 and to find out what is my passive income 5. My passive income 4 is only 10% done up so I will be spending 10 hours per week in it. Recently I have some rough idea for my passive income 5, so I will be spending 3 hours per week to do some research on it. I wouldn’t feel tired by spending time for my passive income as I have 8 hours of sleep per day.

You can read my post on how much passive income I have achieved @ I have achieved one-half of my targeted passive income!!!

5 comments:

xor said...

nicely done! but how about time for exercise, reading, etc?

Freedom Achiever said...

Hi xor,

Thank, I have updated the time table with 2 hours of exercise per week. I do reading during "Working for my passive income" timing.

Regards,
Freedom Achiever

Ben said...

I note that you have created quite a bit of passive income.

Would it be possible if you could elaborate example of passive income that you have created for yourself? It does not have to be specific.

Thanks.

Wealth Journey said...

Yes! The 80/20 Rule is very effective in almost everything we do.

For me, I will try to focus on the 20% that matters on every project I take on. The other 80% you can actually use less time/analysis and the result will actually be quite similar to those who put in more effort/time in the 80%.

Ben said...

FA

Thanks for your inputs.

Will be popping to your blogs. It is very valid in our pursuit for financial freedom.

Cheers

Ben

Have you started your journey towards financial freedom?

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