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What is the Top 1% Rule?

Published in Wealth & Achievement 3 mins read

The "Top 1% Rule" isn't a single, universally defined concept. Instead, the term refers to several distinct ideas, depending on the context. Let's explore the most common interpretations:

1. The 1% Advantage Rule (in achievement and success):

This interpretation, highlighted by James Clear on his website (https://jamesclear.com/the-1-percent-rule), states that over time, the majority of rewards in any field accumulate to individuals, teams, or organizations maintaining a consistent 1% advantage over their competitors. This isn't about being inherently superior, but about sustained, incremental improvement.

  • Example: A software company consistently improving its product by 1% each month will significantly outperform a competitor making only sporadic improvements over the long run.

2. The Top 10% Rule (in college admissions):

In some US states, like Texas, a "Top 10% Rule" exists for college admissions. This guarantees automatic admission to public universities for high school graduates ranking in the top 10% of their graduating class. (http://www.collegeforalltexans.com/index.cfm?objectid=24937C2A-D8B0-34EB-1FC5AF875A28C616) This isn't about individual achievement in the same way as the 1% advantage rule, but rather a system for college access based on academic ranking within a specific cohort.

3. Wealth Inequality and the Top 1%:

References frequently mention the top 1% in relation to wealth distribution. Studies consistently show that a small percentage of the population holds a disproportionately large share of the total wealth. (https://www.cbpp.org/research/federal-tax/the-2017-trump-tax-law-was-skewed-to-the-rich-expensive-and-failed-to-deliver) This is a sociological and economic phenomenon, not a specific rule or principle in the same way as the others mentioned.

4. The "1% Rule" in Other Contexts:

The phrase "1% rule" might appear in various contexts unrelated to the above interpretations. For example, it may refer to specific rules or guidelines within particular fields like finance or gaming. These usages are specific to their respective domains and lack a general definition.

In summary, "the top 1% rule" lacks a single, concise meaning. Its interpretation depends heavily on the specific context in which it's used.

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