Prosperity in the rear view mirror

Here's a question to put in perspective your feelings with the current tightening of the economy: how were you feeling 12 or 18 months ago when business seemed to be chugging right along?

Your initial response is likely to be, "Are you kidding? It was great, just great, especially by comparison to now." I'm not asking for comparison here. If you were to roll back the clock and take your emotional temperature in that different market climate, what reading would you get?

Here's where we tend to forget one key truth about any period in the never-ending cycle of economic swings: we always view periods of prosperity through our rear view mirror.

What are the implications? This means that:

1. Even in the best of times, we don't realize how good we have it until we no longer have it so good.
2. No matter how good the times may be, we're thinking about how conditions could be better.
3. Rather than counting our blessings and taking a bit longer to do so in the good times, we're already concerned, worried or even scared that the upswing may be coming to an end.

Where's the lesson, the redeeming value here? Knowing the cycles and the feelings we attach to each, we can:

1. Spend less than we earn. Period. Any other formula can cause indigestion and heartburn to the most financially savvy among us.
2. Have that rainy day fund covering 12 months of living expenses to prevent panic-based decision making when times turn tough.
3. Give thanks for the good times and bad, since each contains benefits and lessons for us if we just look.
4. Spend more time in reflection and learn from the lessons rather than repeating the mistakes.
5. Read something other than the news. Put your mind in learning mode and increase your prosperity by sharpening your mind.
6. Seek timeless wisdom and counsel from a mentor or coach who can help put things in proper perspective, even if it's just as a sounding board by listening to you closely as you lay out your issues and concerns in detail.
7. Spend time with people who tend to stay on a relatively flat track emotionally, who are neither too solemn in a downturn nor too giddy in the midst of prosperity. By doing so you can learn to take whatever happens in stride while you prepare to face whatever the economy will throw at you.

Up and down, good or bad - these are simply judgmental labels we place on people, things and circumstances. By refraining from judgment and focusing on Boy Scout-level readiness - always prepared - the truth for you can be, as they say, "It's all good."

Keep the faith,

John Earl Carroll