During the past year or so, despite difficult economic conditions, some companies have reported excellent earnings. Upon reading their reports it becomes clear that many of them achieved this without increasing sales revenues. Instead, rigid cost discipline allowed these firms to post profits. Many families have followed a similar culture of frugality. They are enduring a depressed economy by ruthlessly cutting their expenses.
We hope that things will improve and tough times will eventually fade away, though for many of us painful memories will linger. But maybe that is not all that will linger. While reaching for the stars, an awareness of restraint is healthy. It is good to balance the belief that we can do anything and have everything with an appreciation of limitations.