The 80–20 rule of money, also known as the Pareto principle, suggests that 80% of your results or outcomes come from 20% of your efforts or actions. Applied to personal finance, it means that a significant portion of your financial progress can be achieved by focusing on the most impactful actions or strategies. For example, by identifying and addressing the 20% of expenses that contribute to 80% of your spending, you can make substantial progress in managing your finances effectively.