Rupert Murdoch, media mogul and managing director of News Corporation, believes Australia is not adequately preparing itself for the challenges of the 21st century.

He used the last of his six Boyer Lectures for the ABC to look to Australia’s future in the global economy.

Mr Murdoch said that while poor societies were becoming richer, rich societies were at risk of becoming complacent.

“At this time in our history, the gravest threat to Australia’s freedom and prosperity does not come from war or terrorism, it comes from the comfort that can make us content,” Mr Murdoch said in his lecture entitled The 21st Century.

“Australia’s open economy, free society and strategic location give us many advantages.

“They also give us a clear choice - Australia can be a model for the world or we can be a land of squandered opportunity.

“That is the challenge we face.”

Mr Murdoch says Australia is not preparing itself adequately for competition from the world’s emerging economies.

He says it would be a tragedy for Australia to squander its economic strength.

“Australia is not preparing itself adequately for the challenges ahead,” he said.

“And the reason for this is also clear. We are too comfortable. And when we are comfortable, we often are willing to settle for less as long as we don’t have to change how we do things.”

Praising the land he was born in, the 77-year-old said Australia defined him and gave him his first successes.

As every country’s greatest asset was her people, Australia must unlock the abilities of all her citizens to advance in the global community, he said.

“Today, instant flows of information, the advance of trade and the rise of economies that reward risk and enterprise, are all combining to create a world where the opportunities ahead would be greater than anything we’ve seen in human history,” Mr Murdoch said.

“With so much talent, with so many advantages and with so much potential, I can think of no greater sadness for this century than an Australia that was willing to settle for just getting by.”

While some may predict dire consequences should Australia not observe and embrace change, Mr Murdoch said it was quite the opposite.

“I am reasonably sure that the consequences will probably not be dire,” he said. “In my mind, that’s the problem.”

You know, here at Own Your Life Club we strongly believe in people having a Plan B as a backup source of income. Especially in these uncertain times with the mention of recession and job losses.

One of the problems we see is complacency, just as Rupert Murdoch does. In Australia most people are financially OK and there’s always Government assistance to get through any unexpected tough times. “She’ll be right, mate.”

But wouldn’t it be better to be in control of your life if something did go wrong? And if you’re one of the lucky ones who won’t be affected by the economic downturn, then at least you’ll have learnt something new and perhaps even created a second income.

If you are not yet a Member of Own Your Life Club but have been thinking about joining, we now have over 530 content-rich educational products you can access. Covering tops such as Personal Development, Business including Home Based Business, Real Estate, the Stock Market, Internet Marketing, Health and Relationships.

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Until next time, this is Julie Vale from Own Your Life Club.

5 Biggest Mistakes People Make In An Economic Downturn

An economic downturn can be short term or long term. It can be confined to the state you live in, the country you live in or, as we are currently seeing, it can affect the whole globe.

No-one knows how long the current world financial crisis will last. In the US, countless families have lost their homes, lost their jobs and lost money in the stock market, superannuation and bank deposits. It’s just the tip of the iceberg and the flow-on effect is being felt worldwide. It seems everyone is being or will be affected in some way. Even the wealthiest people on the planet such as Warren Buffett and Donald Trump will be worth millions or billions less as share markets take a dive and property values fall.

The crisis began in the US and questions are being asked as to whether it came about through greed or through lack of regulation in the housing sector. Or both. Those questions will be answered in due course through investigations and possibly court cases.

But for now, is there anything you can you do to prepare yourself for if and when the downturn reaches you?

In listing the 5 Biggest Mistakes People Make In An Economic Downturn you will also discover some easy to implement strategies to help you weather the storm by putting more money in your pocket. Immediately.

Mistake No.5 - Living Beyond Your Means

There are many reasons why people live beyond their means and spend more than they earn. Some think that because they’re on a large salary, they deserve it. Some think they need it. Some are under pressure to keep up with the Joneses. Others do so just because they want it.

But the bottom line is, if you don’t have the money, don’t buy it because you can’t afford it. It is mathematics, not magic!

Living within your means will keep you debt free.

Mistake No.4 - No Emergency Back-Up Plan

Years ago a second income in the family used to be a back-up for an emergency. A buffer for times of bad luck, illness or death. Now many households have two incomes and spend it all.

Putting even a small percentage of that second income away in a savings plan puts money in your pocket.

Mistake No.3 - Cashing In Your Superannuation or Shares

Some people are tempted in tough times to cash in their superannuation or shares in a falling market.

It’s better to make some adjustments to get you through without touching your retirement fund or shares. That way you’ll have money for today and for tomorrow. The market is expected to recover but if you sell up now you’ll realise the loss that would otherwise have been only a paper loss.

Mistake No.2 - Believing A Fixed Income Is The Only Answer

More than ever in tough times people need to be more entrepreneurial and create new money. Your current salary is not the end of your earning power. You could take a part-time job. You could start a home based business. You could sell things on eBay. It can be the difference between sinking and swimming.

Mistake No.1 - Believing The Myth of Fixed Expenses

Many people go over their list of expenses and can’t find anything to cut back on. There are very few fixed expenses. If the cost of running a second (or even your main) car means cutting back on groceries, sell the car. If the internet or mobile phone bills are too high, move to a cheaper plan or cut them out altogether. If the repayments on your home are sending you bankrupt, downsize until you get back on your feet.

These are drastic measures for drastic times but they will put money in your pocket immediately.

Research suggests that people who can get out from under a pile of debt feel a great weight off their shoulders. Their anxiety levels drop, their relationships improve, their families are happier and they feel energised to move forward. But it requires a plan and it takes effort.

There are many people so far unaffected by the economic downturn because they don’t have shares or an investment portfolio - but they may still not be immune.

They may have been lulled into a false sense of security thinking the worst is over. Petrol prices are heading down and interest rates on mortgages also going down. But there are predictions now that there is another storm brewing which is yet to arrive. And that storm will directly target jobs.

There is an increasing need for people to become financially educated. That’s one of the main reasons we created Own Your Life Club - for your financial education. The greatest gift you can give yourself and your family is your financial education and obtaining specific knowledge that will empower you and protect you. Not just during the current financial crisis - but for the next one which will come after it. And the one after that.

Wouldn’t it be great to have the knowledge to be financially independent and not have to worry about being affected by an economic downturn? Warren Buffett and Donald Trump have that knowledge and see the crisis as a time of great opportunity. You can too.

To find out exactly what Own Your Life Club offers, click here to take the 21 day test drive for $1.

Until next time, this is Julie Vale from Own Your Life Club.