Managing the Boom and Success Trap

“Australia is one of the best managers of adversity in the world and the worst manager of prosperity.”

The above quote was written in an article in “The Economist” magazine in 1986 and reappeared in an article in the weekend Australian Financial Review dated 25 September 2010.

The article implies that when times are good, individuals, companies and nations fall into the “success trap” of doing nothing because the money keeps rolling in.

Over time, Australians have developed a reputation of managing tough situations and coming out stronger at the end. But in the good times, it’s a case of “she’ll be right mate”.

This reminded me of the New Testament, where the story is told of Joseph, his amazing coat and his ability to interpret dreams; in particular the Pharaoh’s dreams of 7 fat and 7 thin cows and 7 healthy and 7 withered corns of wheat.Joseph’s interpretations and explanations were simple: Harvest in the good times to put aside for the bad times.

The point

Here’s my take on this:
·         Fundamentals work!
·         Have good solid goals in place supported by sound flexible life and financial plans
·         Keep a constant watch on your “success trap”, harvest the maximum that you can in the good times – that harvest also includes continued education of you.
·         Build adequate reserves of personal strength - physical, mental and financial Sow well and you will reap well.

Why? Because YOU deserve it.

Phil