Mothers Day provided the perfect excuse for two of our daughters
and a son-in-law to fly up from Sydney to join us on the Gold
Coast.
What is so special about that?
Well, adult children can decide whether or not you are worthy of
their time and expense.
And, if they do visit, is it out of love or a sense of duty or,
even sadder still, the ulterior motive of securing their
inheritance?
As a parent, do I want my legacy to be a love of money above all
else?
What a soulless way to live life.
If your value system is based purely on a bank balance and status,
then youre destined to live a life of envy and misery.
Why? Because someone will always have more and be higher up
societys pecking order than you.
For me, the most treasured gifts our children can inherit are
good values, manners, self-respect, being appreciative, gratitude
and personal responsibility.
These intangible qualities are genuine wealth.
They are the essence of a truly rich and rewarding life.
Dont get me wrong, money is important.
But it is not the be all and end all.
Money can come and go, but character
remains
We had many conversations over the weekend.
The vibrancy, energy and excitement of youth is tonic for the
soul.
However, not all topics were upbeat.
Stories of hardship caused by rising interest rates and tighter
business conditions were relayed to us by our daughters and
son-in-law. Jobs lost. Hours reduced. Friends preferring home
visits to meeting at a caf. Homes being sold due to financial
distress.
In not wanting to dampen the mood, thoughts of, and, this is
only the beginning, were kept to myself.
The Mothers Day weekend was not the time for doom and gloom.
We were together to celebrate the most important person in our
lives.
However, the reality of the future we in the Western World face,
cannot be ignored.
The greatest asset bubble in the history of money is in the very
early stages of deflating.
Unfortunately for many families, money that was easy to come by, is
now going to go.
Relationships are going to be tested. Difficult times are when
true character is revealed.
Will there be enough emotional glue to hold families
together?
For some, yes.
For others with a value system based solely on money, it could be a
real challenge.
How bad could things get?
If we use the United States as a proxy for the Rest of the West,
then the history of bubbles past forewarns a world of hurt.
Traditionally, US household net worth as a percentage of
disposable income has been in the 520% to 560% range.
Which, if you think about it, makes sense.
Absent significant inheritances or lotto wins, net worth (as an
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