By pa360, Jan 3 2015 09:24AM
When you think of the word 'economy' what are the thoughts that come to mind? Gross Domestic Product (GDP)? Interest rates? Inflation? Job creation. I suspect that you think of all of the above indices plus others.
But do you also recognise yourself as an 'economy'?
I doubt that most people consciously recognise themselves as economies - I know that for most of my working life, I certainly didn't see myself that way. Instead I suspect that most people recognise themselves as individuals within economies or (in the worse case scenario) at the mercy of economies.
I use the word 'recognise' on purpose, because recognition is the first stage in acknowledgement. I may recognise something but fail to acknowledge it through my actions. To acknowledge therefore, is to consciously respond to that which I recognise.
This kind of insight is not new. I think it was Margaret Thatcher, who once said: "Any woman who understands the problems of running a home will be nearer to understanding the problems of running a country". This is because at a fundamental level, our personal economy functions much as our national (macro) economy does.
In simple terms, our belief fuelled by aspiration and ambition, provides the stimulus and optimism to drive our personal economy forward. Meanwhile, the standards that we adhere to (through repetition and behaviour) provide the structure of our economic model, deliver productive output and establish our personal brand or currency. A strong brand provides greater spending power in the market place of opportunity. This in turn boosts our personal GDP, which could be measured in terms of greater personal satisfaction, sense of well being, increased income or recognition by others.
Implicit in this simple logic is the realisation that: if you have the right economic model, you will be well placed to fully maximise your economic potential. So much so that that even in times of economic recession, at national level, your personal economy should continue to experience sustained growth and prosperity.
Of course the flip side of that coin is that if your personal economy is not set up right, even in times of sustained growth and prosperity at national level, it is likely to underperform or worse.
Everyone is an economy. Your belief fuels that economy and provides the basis for a positive economic outlook.