# How can you quickly calculate 20 percent of any bill amount?

A tip is not a hint or a clue about something at least in real world consumer math. It is a percentage given or paid cash in addition to the base price for a service provided. It is also called as a “gratuity.” There are many professions where giving the service provider a tip is important. In fact, the bulk of their income is dependent upon tips. If no one tipped them their employers would have to pay them more. This, in turns, means the employer would have to charge the public more to make up for the higher wages. So, some professions pay their employees a low wage and those employees then depend upon tips for most of their income. Generally, professions that provide a personalized service use the practice of giving tips.

Tips are given to cab drivers, bell hops, hair dressers, movers, waiters/waitresses, hotel maids, valet attendants, etc.

Some typical rates of tips given to various service providers are as follows. These may vary from case to case.

To estimate a tip without a calculator, we use some mental math methods as shown in solved examples.

To estimate a tip without a calculator, we use some mental math methods as shown in solved examples.

For 10% of \$ 88.00, we move decimal one place to left and get \$ 8.80;

So, the tip amount = \$ 13.20

Maggie went to a beauty salon to get her hair cut and styled. Her bill came to \$115.00. How much did Maggie tip her hairdresser, if she gave 20% tip?

Bill amount = \$ 115

First to get 10% of \$ 115.00, we move the decimal one place to the left to get \$ 11.50

To get 20% we double this amount as

So, the tip amount = \$ 23.00

Thomas pays a parking bill of \$48. He decides to leave a 5% tip for the parking guard. How much will the total bill be?

Parking bill amount = \$48.00

To get 10% of \$ 48.00%, we shift decimal one place to left and get \$ 4.80

5% is half of 10%.

Total bill = bill amount + tip = \$ 48.00 + \$ 2.40

# Monthly Savings Calculator

It can be difficult to put money into savings every month, but it may help you to know what the future value of your deposits will be. This calculator can help you determine the future value of your savings account.

First enter your initial investment and the monthly deposit you plan to make. Then provide an annual interest rate and the number of years you would like to consider. Press CALCULATE and you’ll get two numbers: the future value of your account and your total interest earnings.

## Compounding Interest: The Future Value of Monthly Savings

When you start planning for your financial future, you'll need to address compounding interest at some point. Contrary to popular belief, compounding isn't meant only for Wall Street gurus. It's beneficial to anyone who wants to invest in their futures. Compounding interest can help you create a comfortable retirement plan, and it can help you increase your investment returns over time.

Essentially, compounding means that your interest is earning interest. Not only are you earning interest on your principal deposit, but you're also earning on the interest amount as well, so your principal deposit grows faster than if you just earned interest on the deposit alone. How often you compound determines how quickly your deposit grows, with more compounding periods resulting in greater interest accrued.

For example, let's say you deposit \$2,000 into your savings account, and your bank gives you 5 percent interest annually. After a year, you've earned \$100 in interest, bringing your balance up to \$2,100. If you don't touch that extra \$100, you can then earn \$105 in annual interest, and so on.

To calculate compound interest, we use this formula: FV = PV x (1 +i)^n, where:

• FV represents the future value of the investment
• PV represents the present value of the investment
• i represents the rate of interest earned each period
• n represents the number of periods

The advantage of compounding interest is simple: it's a great way to earn more wealth over time. Granted, as with any investment, it takes a while to see the full effect of compounding as it's most powerful over long periods of time. In our above example, it would take about 14 years for you to double your principal deposit. To speed up the process, you could choose to compound your interest monthly rather than quarterly or yearly.

Even though it's never too late to start saving, it's better to start compounding interest as early as possible to give your deposit more time to grow. If you're 33 years old and begin compounding \$100 a month at 1.5 percent interest annually, you'll have earned nearly \$60,000 by the time you're 70. Compare that to starting at age 66 when you'll only have earned \$5,000 by age 70.

You may have heard the term "compound interest" used in relation to a loan or debt you owe. Unfortunately, compounding can work both ways, and you should always aim to earn it, not pay it. Assuming your credit card company charges 20 percent interest on any unpaid balances, your \$1,000 balance can easily turn into \$1,200 in debt by the end of the year. If you pay off debts quickly, compound interest rates won't hurt too much. However, if you tend to make minimum payments, you'll be paying off your principal much slower, resulting in more money spent on interest.

While compounding interest won't make you rich overnight, it's a great way to slowly build your wealth over time. However, keep in mind that the concept also works in favor of your debtors.

# Basic Percent Calculator &#8211; Finding Percentages of Known Numbers

To use the Basic Percent Calculator, enter an amount in the first field, tab or click out of it, and then do the same in the second field. The answer will display automatically.

A common practice after an evening meal at a fine restaurant is to calculate the tip for the waiter or waitress. Based on how well we liked the service, we come up with a gratuity that&#8217;s usually based on a percentage of the bill.

The Basic Percent Calculator at the top of this page and on the home page of Percent Calculators finds the percentage of a known amount, just like how you would in calculating a tip. So, how does the Basic Percent Calculator work?

Finding the Percent of a Known Number

It&#8217;s very simple. This calculator finds the percentage of a known number by taking that number and multiplying it by the percent converted to decimal format. Here&#8217;s the basic formula:

Formula: (Known Number) x (Percent Converted to Decimal) = Answer

For further clarity, a few examples follow.

Example 1: Bill was exceptionally pleased with the food and service at a new restaurant and decided to tip 20% instead of his normal 15%. The bill was \$48.54. What is the tip amount?

Solution: Sticking the two into the Basic Percent Calculator quickly returns the answer, in this case the tip, of 9.71.

Answer: To get that amount, we first convert 20% to an equivalent decimal by stripping the percent sign and diving it by 100. The result is 0.20. That is then multiplied by the \$48.54 bill to get the 9.71 tip amount.

Formula Completed: 20/100 x 15.42 = 9.71

Example 2: Jim has \$112 to spend but he must also consider an 8.25% sales tax. How much does Jim really have to spend?

Solution: Entering the sales tax percent and Jim&#8217;s money amount into the Basic Percent Calculator shows \$9.24 for the sales tax.

Answer: In manually calculating the amount, we must first convert 8.25% to decimal format by dividing it by 100. The 0.0825 result is then multiplied by \$112 to get the sales tax amount of \$9.24.

Percentage Formula Completed: 8.25/100 x 112 = 9.24

The final step in this particular example is to subtract the sales tax amount of \$9.24 from Jim&#8217;s \$112 to find the actual amount he can spend, which is \$102.76.

# What Is The 80/20 Rule And Why It Will Change Your Life

I mention the 80/20 rule frequently in my writings so I thought it was about time to write a proper introduction to the concept. I believe it&#8217;s fundamental to every business person &#8211; to every human being &#8211; so if you have never heard of this rule, please read on and absorb everything I&#8217;m about to tell you, it could potentially change your life.

The 80/20 rule sounds like a statistic and in some ways it is. Personally I&#8217;m not a big fan of maths and beyond basic web statistics like pageviews, impressions, unique visitors &#8211; and when I stretch myself &#8211; conversion rates and split testing, I try and avoid all complex numbers. I work better with feelings, ideas and concepts.

The good thing about the 80/20 rule is that you don&#8217;t have to understand statistics to be a believer. Yes it has foundations in economics and yes, it was &#8220;proven&#8221; using statistical analysis by a man named Pareto, but it is not meant to be understood only by economics professors.

Here&#8217;s what the Wikipedia has to say about it:

The principle was suggested by management thinker Joseph M. Juran. It was named after the Italian economist Vilfredo Pareto, who observed that 80% of income in Italy was received by 20% of the Italian population. The assumption is that most of the results in any situation are determined by a small number of causes.

I can&#8217;t remember exactly when I was first exposed to the 80/20 Rule but I know when it first really hit home. I was in my local bookshop and I picked up a copy of Living The 80/20 Way by Richard Koch. Koch took the 80/20 Rule and made it his own by writing a series of books on the topic. Living The 80/20 Way fit me well because it discussed living life productively seeking maximum satisfaction by focusing on your passions (Koch has written other books focusing on the 80/20 Rule for business and managers that I didn&#8217;t enjoy quite as much). At the time I sometimes accused myself of being lazy for not &#8220;working hard&#8221; but I realized what I was doing was living an 80/20 lifestyle and in fact probably being a lot more productive than those working harder than myself.

By the numbers it means that 80 percent of your outcomes come from 20 percent of your inputs. As Pareto demonstrated with his research this &#8220;rule&#8221; holds true, in a very rough sense, to an 80/20 ratio, however in many cases the ratio can be a lot higher &#8211; 99/1 may be closer to reality.

It really doesn&#8217;t matter what numbers you apply, the important thing to understand is that in your life there are certain activities you do (your 20 percent) that account for the majority (your 80 percent) of your happiness and outputs.

There are many economic conditions, for example the distribution of wealth and resources on planet earth, where a small percentage of the population controls the biggest chunk, which clearly demonstrate the 80/20 Rule. There are business examples such as 20 percent of employees are responsible for 80 percent of a company&#8217;s output or 20 percent of customers are responsible for 80 percent of the revenues (or usually even more disparate ratios). These are not hard rules, not every company will be like this and the ratio won&#8217;t be exactly 80/20, but chances are if you look at many key metrics in a business there is definitely a minority creating a majority.

At a micro level just by looking at your daily habits you can find plenty of examples where the 80/20 Rule applies. You probably make most of your phone calls to a very small amount of the people you have numbers for. You likely spend a large chunk of your money on few things (perhaps rent, mortgage payments or food). There is a good chance that you spend most of your time with only a few people from the entire pool of people you know.

I&#8217;ll present to you how the 80/20 Rule applies to my life and how I have used the concept, although not always deliberately &#8211; it&#8217;s just the way I construct my life (for maximum pleasure!) -to improve the efficiency of my output and enhance my overall lifestyle.

In my life I&#8217;ve noticed plenty of 80/20 ratios and generally they relate to my core competencies and passions. I really enjoy writing articles such as this, recording podcasts and interacting with other business people through Skype and blogging. In terms of rewards, the two-to-four hours or so per day that I spend writing &#8211; when I&#8217;m in the creative zone and my best work comes out almost effortlessly &#8211; is my money time. My articles and podcasts work hardest to generate income for me, create business opportunities and allow me to express myself creatively. I get the most financial and intrinsic satisfaction from this time.

I expect you could tell me a similar story about your life. During times you really enjoy yourself your output is at its peak. Your passion activities probably don&#8217;t pay your bills at the moment, which unfortunately means that you can&#8217;t sustain your life by indulging only in what you enjoy. I&#8217;ll talk more about transforming your life to a financially stable and personally fulfilling 80/20 format later in this article.

During some times in my life I struggle and waste time performing activities I don&#8217;t enjoy or I am not good at. For example bookkeeping is not high on my fun list. I don&#8217;t always like managing keywords in Google AdWords campaigns because I don&#8217;t have the patience to thoroughly test the variables and track the numbers. The same can be said for things like Google Analytics. These activities are more numerical in basis, I&#8217;m not a numbers person so when possible I leave these tasks, along with other activities like programming, graphic design and proofreading to other people, the specialists who enjoy them.

Some of my time is spent procrastinating or working inefficiently doing activities that provide very little benefit. This often occurs when I am tired or below peak physical condition. I sometimes lack the mental throughput to motivate myself to be productive (and boy, my writing stinks when I&#8217;m tired!), but I&#8217;m working on it and getting much better at reducing time wastage. When I&#8217;m in this state it&#8217;s smarter for me to study &#8211; read books and ebooks &#8211; because I&#8217;m not capable of producing quality output, but taking input &#8211; learning &#8211; is a good use of time when I am not there 100 percent mentally.

When I look at one of my businesses, BetterEdit.com, it&#8217;s very clear that a small handful of repeat customers account for most of the income. The customers who become longterm users, who gain the most from the services and fit well demographically and socially with the business model, are key. They provide 80 percent of the value but only represent 20 percent (or much less) of the overall people that use the business. My job is to determine the best way to attract and convert more customers into longterm users.

With blogging I learned (and teach in my Blog Profits Blueprint newsletter) that there are a handful of activities that I do every day that produce the most results. Breaking things down further, there are usually a key 20 percent of elements within an individual blog article (think article headline) that have the most dramatic effect on results. The numbers of course are not clean 80/20 ratios but there are definitely dominant factors at play.

In a business sense, finding the 80/20 ratios is crucial for maximizing performance. Find the products or services that generate the most income (the 20 percent) and drop the rest (the 80 percent) that only provide marginal benefits. Spend your time working on the parts of the business that you can improve significantly with your core skills and leave the tasks that are outside your best 20 percent to other people. Work hardest on elements that work hardest for you. Reward the best employees well, cull the worst. Drop the bad clients and focus on upselling and improving service to the best clients.

When you start to analyze and breakdown your life into elements it&#8217;s very easy to see 80/20 ratios all over the place. The trick, once your key happiness determinants have been identified, is to make everything work in harmony and avoid wasting time on those 80 percent activities that produce little satisfaction for you.

The message is simple enough &#8211; focus on activities that produce the best outcomes for you. This applies to both your business/working life and your &#8220;other&#8221; life (I think they are all part of your &#8220;life&#8221; but people often prefer to distinguish them). The problem for most people is how to make a living from what you really enjoy, so lets focus on that&#8230;

I&#8217;m sure you have heard the phrase &#8220;struggling artist&#8221;. The stereotype where a creative person, musicians, actors, writers and artists, struggle to get discovered and work long hours on horrible day jobs, often in retail and hospitality, until hopefully they finally break out, get discovered and become famous. It shouldn&#8217;t surprise you that the ratio of struggling artists who actually become famous enough to live off their craft also follows an 80/20 Rule &#8211; only a small few of the overall total manage to get that far.

The same can be said for entrepreneurs. How many of you now reading this article are working day jobs, jobs you probably don&#8217;t like much, while you work hard after-hours to get your dream business up and running?

In truth, and this is a sad fact, most people in the world work jobs they don&#8217;t like and only truly live their passions on weekends and outside of working hours. Only a small sample actually live their passions day in and day out, how they want to and when they want to. If you want to become one of the special few so you can live your passions on your terms there are a few things you can do.

The simple fact is not everyone can be a famous artist. Not everyone will start a million dollar business. I&#8217;m not going to tell you stop striving for those goals, I&#8217;m working on them myself, however you can work smarter TODAY to find greater fulfillment, and that is what living an 80/20 lifestyle is all about. Best of all, your likelihood of becoming one of the famous artists or entrepreneurs is enhanced if you tweak your life to follow the 80/20 Rule because you tap into what you do best more often.

The first thing you must decide, and this is often the hardest step, is to determine what it is exactly you have passion for. Some people can answer this question easily &#8211; &#8220;I want to be a famous pianists/singer/poet/author&#8221;, &#8220;I&#8217;d like to run my own real estate agency/coffee shop/advertising company&#8221; etc. Others may have a general idea &#8220;I don&#8217;t want a day job&#8221; or &#8220;I want to run a business&#8221; but the specifics are not sorted yet. If you are not sure what your passions are all I can suggest is test yourself. It&#8217;s usually easy to determine what you DON&#8217;T like so keep doing that until you find what it is you DO like.

I&#8217;d like to make a point about outputs vs inputs before moving on. Most humans are good consumers &#8211; we are good at taking inputs. Chances are you can easily rattle off a bunch of things you do enjoy about your life: eating out at nice restaurants, consuming junk food, reading books and magazines, going to parties and dance clubs, watching movies and DVDs, listening to music, meeting new people, surfing the net, having sex, playing sports and shopping. All of these activities more or less are inputs which means you consume the outputs of other people.

You may consider the activities I just mentioned passions but it&#8217;s hard to find a sustainable passion if all you do is consume. To foster an 80/20 lifestyle you need to locate activities that are passions for you because you create output for others to enjoy. Yes you can get paid to have sex, watch movies, eat at restaurants and read books, but chances are you won&#8217;t find it fulfilling or sustainable for very long OR you will be required to provide something back as part of your involvement &#8211; that&#8217;s your output, the value you create.

It&#8217;s okay to love eating out at restaurants and claiming your passion is food, if your intention is to also create output by starting your own restaurant, or a restaurant reviews website or a newsletter or magazine or becoming a chef. If you enjoy listening to music you might also enjoy producing your own music or covering the music industry as a journalist on your own blog.

Only by producing output for other people to enjoy or make practical use of can you expect to convert a passion into a sustainable income. You should understand this already as I suspect the times in your life that you have created something for others or worked on something that benefited other people you experienced the most fulfillment. If you suffer from a lack of direction now, if you are depressed because you don&#8217;t even know what your passions are to start applying the 80/20 Rule to, you need to do one thing &#8211; start being creative and giving back &#8211; produce output! You won&#8217;t find fulfillment only by consuming.

To start living 80/20 today you have only to do one thing &#8211; focus your energies on what you enjoy.

Part time work &#8211; Part time passion

Many people work a full time job and work after hours on a business or hobby or creative talent. If this is you I suspect your ratio is not 80/20 and probably closer to 20/80. You spend way too much time at a job you don&#8217;t like, you are probably not very motivated to do it well so you don&#8217;t fall into the vital 80/20 employees for that company, and by the time you get home you are too exhausted to spend time on your passion. You feel like you are getting nowhere fast. This lifestyle is not good for anyone since all the relationships fall into the 80 percent that produce 20 percent of the value. You get very little from it and the people you work for get very little from you.

If this currently describes your situation what you need to do is start changing those ratios. Reduce the amount of time you spend at a job you don&#8217;t like and increase the amount of time you spend on your passion. You may say you can&#8217;t do that because you need the money but I suspect you don&#8217;t really need as much as you think you do. Most people can live off part time work but choose to work more because they want more things. You may see your peers enjoying material goods which creates desires in you. Your wants start to outweigh your needs, which is probably the biggest pitfall in our modern, advertising driven, materialistic society.

I&#8217;m not saying you have to live like a pauper but I know that your real happiness comes from spending time doing things you enjoy the most, not from earning more money. Chasing the dollar for the sake of the dollar does not work. Chasing passion often leads to a greater income because the quality of your output is so much higher. Focus your energy on increasing investment in your core strengths and you will reap rewards.

Drop your working hours to three days per week and spend more time attracting more clients, booking more singing gigs, finding more time to write your novel or to develop your invention or code your software or find investors or whatever it is you really want to do.

For those of you who have no intention of turning your passions into money generating enterprises this is still a good option. If money isn&#8217;t your primary concern but your music is, why do you spend so much time working to earn more money than you need? Yes you need to plan for the future and build assets, but clearly for your musical soul it&#8217;s not something that needs to take the majority of your time and energy. You can be happy without that mansion by the sea and you never know, if you spent more time on your music the eventual album sales may one day lead to that mansion by the sea. If not, at least you will be a lot happier for following your enthusiasm rather than the dollar.

If financial freedom is important to you and a big part of your plans look at this step as phase one and work to convert your passions into income generating propositions. Grow your business client-by-client, gig-by-gig or sale-by-sale. keep adjusting your work vs passion time ratio as your business grows to support you and you no longer need your job income. Look for 80/20 activities in everything you do and drop any inefficiencies as soon as you can.

The biggest factor that stops most people from chasing their dreams and working towards their real goals is fear. Fear of the lack of security, the reduced paycheck and of the unknown future keeps people locked into routines that are not satisfying. That path leads to sadness, depression, poor health, low income and ultimately an early death. Who wants that!

Don&#8217;t let fear be the reason for not achieving your goals. Stop, reassess your real passions, remove the money equation long enough so you can think without worrying about finances, and make plans to move towards your 80/20 lifestyle activities. Maximize what you are good at. Find the activities that produce the most results for you and your business and put your energy where the big rewards are.