Is there a better way? If so, do I want to change?
Fred Smith, the famous consultant, said that when called into a sick Company he always looked for one of two attitudes, either IGNORANCE or CONCEIT. If it was ignorance he heaved a sigh of relief. They could easily be taught the right principles and practices. But if it was conceit, "We have done it this way for umpteen years", or "Nobody can teach us anything", he would give up.
There seems to be an "Effective Curve" that operates on about a five-year cycle. It may be a business, a project or our household financial plan; we start off with high hopes being innovative, enthusiastic, creative and eager. Things happen, life is rosy and our effectiveness rises sharply. Then we start to ease up and allow inefficiencies to creep in. We learn to coast along on past successes and in fact look backwards instead of forward. Then the curve starts downward until we often can end up where we started, ineffective, disillusioned, a life of tedium and totally lacking in excitement.
It's good to evaluate just where we are on the effectiveness curve so we can take immediate, corrective action if necessary.
A famous aircraft engineer has a picture of a large bee in flight with this caption. "Aerodynamically it has been proved conclusively that the bee cannot fly but the bumble bee doesn't know it and just goes on gathering honey."
A great many people over the ages have "proved conclusively" that this or that could not be done only to wake up too late to discover somebody has done it and like the bumble bee gathered the honey. Maybe we need a few lessons on "Creative Thinking" just to get us back on the upward curve again.
Here's a little test to see whether you limit your thinking by assuming requirements that are not asked for and may not even exist. Draw nine dots in the form of a square. Now you are asked to draw four straight lines so as to intersect each dot. You must not cross any dot more than once, not retrace any line not lift your pencil from the paper until all nine dots have been crossed.
Don't give up - it can be done - only you have to start thinking laterally. However thinking is not sufficient. Creativity needs to be applied. Our country needs original thinkers, not a bunch of robots who only do what they are told. We need those who are prepared to be innovative, think outside the square and willing to test out and improve until like the bumble bee we gather enough honey to set our economy straight again.
Friday, April 07, 2006
FOUND ANY DIAMONDS LATELY?
One of the most famous lectures ever delivered was the one made 5700 times by the American, Dr. Russell Conwell. The name of the speech was "Acres of Diamonds" and I think we can learn something from the moral. The fable was told to him by an Arab guide he used on a tour of the Middle East in 1870. It concerns a poor Arab who was told by a Buddhist priest how the world was created and how all the minerals and gems came into being; that diamonds were among the last of the precious stones to be made and that they were in fact congealed drops of pure sunlight. The poor Arab, made disconent by the story of the diamonds, asked the priest where they were to be found. Told to look for rivers that run over white sand, the Arab sold his farm, left his family with relatives and began the search. After years of fruitless searching and ultimately becoming penniless, he killed himself.
Then one day, the new owner of his farm, took his camel to a stream running through the property. While the camel drank he noticed a gleaming rock in the river, retrieved it and took it to the house.
Coincidentally the same priest who had sent the Arab on his search for diamonds came around for another visit, noticed the diamond and helped the farm's new owner retrieve fabulous stones that soon adorned the crowned heads of Europe.
There were indeed acres of diamonds on the poor Arab's farm. But he did not look in his own garden. He missed finding the diamonds in his own back yard.
I wonder if you are still looking for the pot at the end of the rainbow? Too often our own circumstances seem mundane - we never seem to have enough money to satisfy our wants and we go searching for some get-rich method that will solve all our problems in one fell swoop.
I believe that is why the share market is artificially propped up by the thousands of investors who want to get rich quickly even if it means borrowing to do so. Recent history has been studded with booms and busts and the '87 crash brought many investors to their knees.
Some investors enjoy the cut and thrust of speculation and have the flexibility to ride the highs and lows with equanimity. Others are more intense and are either in a state of euphoria when their shares gain a few points or suffer ulcers when they take a dive. The large remaining group of investors if asked, "Do you want to sleep easy at night or are you prepared to take the risk for high returns and wouldn't worry too much if you lost out", would plump for security every time.
I believe there are diamonds in our own back yard. A big one is the ability to learn how to live within the income we receive. The second is to plan our spending in such a way that we have sufficient surplus to save for the necessities of life without using easy credit. But the most sparkling diamond is reserved for those who are willing to help the poor and needy - those who have no access to the things in life that we take for granted.
Hope you discover a few diamonds in your back yard that you can share with others.
Then one day, the new owner of his farm, took his camel to a stream running through the property. While the camel drank he noticed a gleaming rock in the river, retrieved it and took it to the house.
Coincidentally the same priest who had sent the Arab on his search for diamonds came around for another visit, noticed the diamond and helped the farm's new owner retrieve fabulous stones that soon adorned the crowned heads of Europe.
There were indeed acres of diamonds on the poor Arab's farm. But he did not look in his own garden. He missed finding the diamonds in his own back yard.
I wonder if you are still looking for the pot at the end of the rainbow? Too often our own circumstances seem mundane - we never seem to have enough money to satisfy our wants and we go searching for some get-rich method that will solve all our problems in one fell swoop.
I believe that is why the share market is artificially propped up by the thousands of investors who want to get rich quickly even if it means borrowing to do so. Recent history has been studded with booms and busts and the '87 crash brought many investors to their knees.
Some investors enjoy the cut and thrust of speculation and have the flexibility to ride the highs and lows with equanimity. Others are more intense and are either in a state of euphoria when their shares gain a few points or suffer ulcers when they take a dive. The large remaining group of investors if asked, "Do you want to sleep easy at night or are you prepared to take the risk for high returns and wouldn't worry too much if you lost out", would plump for security every time.
I believe there are diamonds in our own back yard. A big one is the ability to learn how to live within the income we receive. The second is to plan our spending in such a way that we have sufficient surplus to save for the necessities of life without using easy credit. But the most sparkling diamond is reserved for those who are willing to help the poor and needy - those who have no access to the things in life that we take for granted.
Hope you discover a few diamonds in your back yard that you can share with others.
Wednesday, April 05, 2006
MONEY IN PERSPECTIVE
I have hust read about a thrifty young woman who became concerned over the lavish amount of money her boyfriend was spending on her. After an expensive dinner date she asked her mother, "What can I do to stop Bill from spending so much money on me?" Her mother replied simply, "Marry him!"
Is that an unfair generality or a very perceptive comment on the state of our Kiwi male who within a year of marriage reverts to type and becomes buried in the dull routine of existence. As far as the purse strings are concerned he is likely to pursue one of two directions. Either he says to his wife, "I'll make the money - you handle the pay packet. Mind you any overtime or extras usually finds its way into his hip pocket.
The other option is for him to keep tight control of the chequebook so that his wife has to plead when she needs money to buy a new outfit.
Very seldom do I see a totally shared responsibility when it comes to handling the household finances. Yet this is the very essence of good money management.
Take two people, one male and one female, from totally different homes with different upbringings and experiences each with different likes and dislikes, each with some degree of independence and self-centeredness living in the same house with different tasks and responsibilities trying to work from the same budget and trying to meet the same goals. Will they agree on everything? Not in your life! Despite their firm commitment of love and loyalty these differences make some degree of conflict inevitable. There are more disagreements about handling of money than possibly any other subject.
So, what should a young couple do when setting out on life's journey? I would like to see them take these steps:
1. Get some expert advice to set up their initial financial plan.
2. Open the required number of joint Bank accounts with either to sign.
3. Enrol in a few courses like cooking classes for low-cost meals, repairs and maintenance etc. and teach each other these skills.
4. Start right from scratch while there are two incomes to save a healthy deposit on their first home.
5. Take it in turns to decide what will be the next financial goal to save for but put a ceiling on the limit.
6. Have a family conference every few months to discuss finances, evaluate progress, allocate tasks and modify plans.
7. Plan an annual holiday and decide where to go and how much it will cost. Then save specifically for the holiday.
8. Above all, get some enjoyment out of your hard-earned money and use it for innovative purposes. Give each other a surprise present apart from birthdays and Christmas.
Enjoy a dinner out on occasion. The reciprocal rewards will be great!
Is that an unfair generality or a very perceptive comment on the state of our Kiwi male who within a year of marriage reverts to type and becomes buried in the dull routine of existence. As far as the purse strings are concerned he is likely to pursue one of two directions. Either he says to his wife, "I'll make the money - you handle the pay packet. Mind you any overtime or extras usually finds its way into his hip pocket.
The other option is for him to keep tight control of the chequebook so that his wife has to plead when she needs money to buy a new outfit.
Very seldom do I see a totally shared responsibility when it comes to handling the household finances. Yet this is the very essence of good money management.
Take two people, one male and one female, from totally different homes with different upbringings and experiences each with different likes and dislikes, each with some degree of independence and self-centeredness living in the same house with different tasks and responsibilities trying to work from the same budget and trying to meet the same goals. Will they agree on everything? Not in your life! Despite their firm commitment of love and loyalty these differences make some degree of conflict inevitable. There are more disagreements about handling of money than possibly any other subject.
So, what should a young couple do when setting out on life's journey? I would like to see them take these steps:
1. Get some expert advice to set up their initial financial plan.
2. Open the required number of joint Bank accounts with either to sign.
3. Enrol in a few courses like cooking classes for low-cost meals, repairs and maintenance etc. and teach each other these skills.
4. Start right from scratch while there are two incomes to save a healthy deposit on their first home.
5. Take it in turns to decide what will be the next financial goal to save for but put a ceiling on the limit.
6. Have a family conference every few months to discuss finances, evaluate progress, allocate tasks and modify plans.
7. Plan an annual holiday and decide where to go and how much it will cost. Then save specifically for the holiday.
8. Above all, get some enjoyment out of your hard-earned money and use it for innovative purposes. Give each other a surprise present apart from birthdays and Christmas.
Enjoy a dinner out on occasion. The reciprocal rewards will be great!
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