Comments on My Open Wallet: Finances and the Family: The Earlier Generations

I agree with Gord. It's not enough that our paren...

2009-09-16T21:19:39.019-04:00

I agree with Gord. It's not enough that our parents bequeath their wealth to us. They too should pass the "formula" on to us to make this inherited wealth substantial.
My Well Of wealth

It's not how much we have, but how we manage our m...

2009-09-12T09:57:51.535-04:00

It's not how much we have, but how we manage our money is the most important things in life.

You are not alone...Each one of us face such type ...

2009-09-02T21:08:16.811-04:00

You are not alone...Each one of us face such type of challenging thoughts in our everyday lives but life isn't about how much money we make or what can we afford .I would feel the panic sometimes but my experience has taught me that what really matters is not calculated by numbers or totaled in our net worth..... of course Money and you by Habit Changer has provided useful tools in changing this perspective .http://www.habitchanger.com/moneyandyou/

you're not the only one to think like that. I too...

2009-08-20T12:55:25.224-04:00

you're not the only one to think like that. I too believe that we have it so easy and if anything we should be able to go above and beyond what the generation of our immigrant ancestors were able to do. Somehow visions/goals seem to have changed, is it because the hard working parents made it very easy for their kids?

You say at the end of your post that "they passed ...

2009-08-19T16:52:16.376-04:00

You say at the end of your post that "they passed on an amazing gift to us"

But that's just it. Most parents don't pass it on. They may know how to be successful financially, but they don't really pass the philosophy on to their children. They pass on the money and the assets, but it's not enough. It's more than technique, it's a way of thinking and feeling.

Just do not forget,who is the NO 1 in your life......

2009-08-19T14:18:30.602-04:00

Just do not forget,who is the NO 1 in your life....
It is you!!!!
Take good care of yourself....

The final anonymous poster makes a good point abou...

2009-08-19T09:34:54.554-04:00

The final anonymous poster makes a good point about the big bull market after WWII. Plus, the depression and WWII made 95% of the population extremely frugal.

It should also be noted that those who had jobs during the Great Depression, and there were plenty who had jobs, were in a great position to expand their wealth by buying undervalued assets (property, stocks, etc.).

They also caught the sweet spot of this nation. We had enough people to be a heavy weight, but not enough to make the majority of land expensive or crowded.

Of course, they didn't take these opportunities for granted and they didn't bother to put 5 TVs in house that was 3x larger than they needed, with 3 cars for two drivers. They thought one trip to Hawaii in their life would be the pinnacle of their travel...but most never actually went through with it.

They rarely bought their kids anything.

They also didn't have the ridiculous options for spending money we now have. Just compare phone options. They had basically one option (black rotary phone) and we have an almost infinite number that have to be replaced every few years. My parents still have a black rotary phone that works in their basement, which is at least 40 years old. Is our phone even going to last us through 2010? Definitely not 2012.

People often wonder why the current generaton is s...

2009-08-19T09:08:30.897-04:00

People often wonder why the current generaton is struggling while their parents and grandparents did fairly well. It's often forgotten what role a long running bull market played in helping our grandparents and parents prosper in the years following WWII.

Madam. . . . I have come to believe that the way m...

2009-08-19T00:46:21.205-04:00

Madam. . . . I have come to believe that the way money is handled has nothing to do with how you were raised. There are 4 of us. . . The brother with the least education makes the most money and has gone bankrupt 2 times. The other two do fairly well with the money they make. I have the most education and make the least money, but have the most assets. Our parents saved all their lives to give to us. . . . Their parents did the same. Both my father's parents and my my mother's parents saved and saved and saved.
Looking back, I wished my mother and father had traveled and done things. My mother is gone, and my father is a shell of a man without her.
The money they wanted to leave to us and have saved all our lives will probably go to pay for a nursing home for my father.
Maybe your mom has the right idea.
Ciao

Your story is actually quite common. Have you eve...

2009-08-18T19:15:21.402-04:00

Your story is actually quite common. Have you ever heard the saying, rags to rags in three generations? If you do a google search, you'll come up with the following explanation...

"The first generation in a family makes money (goes from rags to riches); the second generation holds or keeps the money; and the third generation squanders or loses the money (and so goes back to rags)."

madame X: Chin up! You are feeling too sorry for y...

2009-08-18T19:05:50.188-04:00

madame X: Chin up! You are feeling too sorry for yourself, but don't. Overall, things are not as bad for you family, as they are for most people in the world. On a global scale, your family is probably in the top 5% if not higher. Things will get better.

Madame X wrote: “The "American Dream" is for that ...

2009-08-18T16:37:35.141-04:00

Madame X wrote: “The "American Dream" is for that kind of prosperity to increase in each succeeding generation, not evaporate. Yet that evaporation is what seems to be happening in my family.”

Make no mistake that is generally the path the US is on as a whole. So welcome to the party.

The tremendous amount of debt, both public and private, are going to have to be repaid somehow (think higher taxes or inflation). This fact will cause a “generational” step down in standard of living for Americans. We have spent future earnings (through borrowing debt) for far too long, both as individuals and a society. No one, not even governments, can spend more than they take in forever.

The story you tell for your family is the story of the US.