No-one knows for sure what is going to happen in the next few years, but the smart money is betting on a longish recession.

Since most of our young people have only ever seen good times, apart from a small dip for the GFC, they are ill-prepared for the forecast recession.

They will be looking to us for help and guidance.

With that in mind, here are the survey results about what became important during the Great Depression of the 1930s.

 

'Five qualities were identified as important to the parents of most of the research participants in providing for their families during the 1930s: 

  • a strong support network which was typically provided by a comprehensive type of "family relief;"
  • a strong work ethic of all family members of all generations;
  • the practice of thrift;
  • the utilisation of a large set of personal skills; and
  • beliefs and values which included religious faith for the majority of participants as well as the importance of family and education.

'Another belief of the majority of the parents of the research participants was the importance of bearing hardship without complaint or grumbling—at least in front of the children.'

 

Some of the sayings that reverberated through that era still have meaning today, even though many people have neglected them.

  1. 'Beware your sins will find you out'. Be honest in your dealings. Don't lie about the situation. Deal with the brutal facts and develop a plan to get through to the better times that will — in time — come again.
  2. If it sounds too good to be true, it usually is. Get rich quick schemes, Ponzi schemes, Tax minimisation schemes, easy money to be made etc. As enticing and as believable as some of these concepts sound, they generally all end in tears. Don't make a difficult financial situation worse by chasing the quick buck.
  3. There is no new way to go broke. It is always too much debt. We are about to see an excellent demonstration of the perils of borrowing to excess. Delayed gratification is far more rewarding — and lasting — than the instant gratification of 'buy now, pay later' schemes.
  4. It's not what you make, but what you keep. Save first, then prioritise spending from essential to non-essential.
  5. You must have goals. Without a target to aim for, you are shooting at nothing. Too many people are rudderless in life. Drifting with the tide rather than charting a course. Goals - large or small — give your life purpose. And when you have a purpose, there's a reason to get out of bed each day.
  6. Never, never, never give up. Sir Winston Churchill knew the power of persistence and determination. Teaching your children to 'dust themselves off' is as equally as important as acknowledging their achievements. You tend to learn more from your failures than you do from your successes. Allow them to fail and learn.
  7. Finally, 'a smile is the best makeup a girl can wear'. A smile says so much about who you are and how you feel about yourself. It can also brighten a person's day. Good manners go hand in hand with a smile — please and thank you are words that, sadly, are being used less frequently by the younger generation.

 

Regards,
Brent.

 

P.S. I know that I have been hitting this button several times this year, but it concerns me that our media and politicians are pushing the wrong direction.

This push will cause the crash to be more significant and the recession to go longer than it would have if they had allowed the GFC to generate the correction required.

For you, there is a real possibility that your income will become severely restricted.

It's not likely to be so bad for me because I'm retired, and I have prepared for this retirement.

I still think I need to generate a nice consistent income online because I'm concerned that the coming crash might cause more financial damage than I would like.

For you, it means that you need to begin preparing to generate a second income stream from somewhere.

If you are considering it and haven't taken action yet, why not?

Do it while you can, waiting could be hazardous to your income.

Take advantage of the vast numbers of people stuck at home who are online and bored.

Write a book or two. 

They'll buy them.

Find out how to write a book in 24 hours.

 
  Brent Milne
12 Torrens St
Happy Valley
South Australia

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