MY 10 TIME TESTED WAYS TO WEALTH - SCOTT PAPE Has it ever struck you that – in Australia at least – the last few decades of uninterrupted economic growth have left us, well, kind of soft? That’s the only conclusion I can come to after spending some time with my grandparents and other octogenarians. Unlike us, they lived through genuinely tough times. So, with all the navel-gazing negativity going on today, let’s draw on some lessons from their lives in the 1930s and 40s. 1. They paid their bills One of the nicest things I ever heard said about my grandfather was that he always paid his bills on time. For him it was an integrity issue: you were either a man of your word, or you were a crook. 2. They paid in cash They didn’t have a choice. Credit cards were yet to be invented, and bankers back then behaved like responsible corporate citizens. More than that, people had an aversion to debt, caused by the borrowing binge that preceded the (not so) Great Depression. 3. They saved money The hard times left them with a healthy respect for risk, and this stayed with them – and ultimately served them – even after the economy picked up post World War Two. These were the days before mass-market consumer credit, so most people simply couldn’t live beyond their means. 4. They fixed stuff Things were fixed, not thrown away. Both my grandfathers had sheds where they could get away from the missus, have a crafty beer or a fag, listen to the footy, and ‘tinker’. Shoes were re-soled, socks were darned, dresses were hemmed. 5. They worked hard With five mouths to feed, there was no time to ‘find themselves’. Both my grandfathers worked long and hard (and there was only one income). Second and even third jobs were common. 6. They didn’t expect handouts The dole was something to be ashamed of. You worked hard, paid your taxes and paid your way. Listening to them, it seems like there wasn’t the entitlement attitude that pervades our politics today. 7. They lived in modest homes One of my mate’s grandfathers once told me, “I remember growing up with dirt floors – it was like Christmas when we got carpet – imagine that, being happy with carpet!” They bought what they could afford, then they slowly added ‘mod cons’ like carpet and curtains. 8. They lived through genuinely tough times I learned this when my grandmother said “we skinned rabbits in the old days – whatever it took to make ends meet” (wait – KFC was around even back then?). There was large-scale unemployment and married women weren’t accepted in the workforce. They simply did what they had to do. 9. They had a sense of community While Gen Y are the most connected generation in history, it’s commonly cited that they’re also the loneliest. Things seemed to be simpler back then – people lived with dignity, they saved money, and they competed, but on their integrity and their family, not the ‘stuff’ they had. 10. They created a real legacy Each generation since the 40s has done everything in its power to reduce the risks of life: credit now enables us not to stress about living within our means, superannuation means we don’t have to worry about retirement, and populist politicians claim to be able to fix whatever worries are left over – so long as we vote for them. But it’s impossible to be fully insulated from risk. And even if you could be, you wouldn’t want to. A bit of pain is life’s way of telling you to stop doing dumb stuff. So, despite all the doom and gloom in the newspapers, we need to remember that things are pretty bloody good. After all, we’ve got low unemployment, first-class (and basically free) healthcare and subsidised education. Or, as an old bloke once said to me: “Life isn’t fair, and if you expect it to be, well, what you need to do is get a bucket, a spade and some concrete and harden up, cupcake.”
Posted on: Wed, 26 Mar 2014 02:19:57 +0000
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