Economic Winters - A philosophical perspective

" The first great lesson of life to learn is that winter will always come; not only in the winter of cold, and wind, and ice, and snow, but the human winters of despair and loneliness, or disappointment, or tragedy. It is winter when prayers go unanswered, or when the acts of our children leave us shaken and stunned. It is winter when the economy turns against us, or when creditors come after us. It is winter when competition threatens, or when a friend takes advantage. Winter comes in many forms, and at any time, both to the planter of crops as well as to the person in business, or even to our personal lives.

The arrival of winter finds us in one of two categories: Either we are prepared or we are unprepared.


To those who are prepared, who have planted abundantly in the spring, guarded their crops carefully during the summer, and harvested massively during the fall, winter can be yet another season of opportunity. It can be a time for reading, a time for planning, a time for gathering our strength for the coming spring, and a time for taking comfortable shelter. It can be a time of great enjoyment, a time to be shared with those we love, and with those with whom we have labored. It is a time of thanksgiving, and a time for the sharing of life’s bounteous gifts. Winter is a time for being grateful, both for what we have, as well as for what we can yet achieve. Winter is a time for rest, but not excessive rest. It is a time to enjoy the fruits of our labors, but not a time for gluttony. It is a time for warm conversations, but not a time for gossip. It is a time of gratitude, but not a time for complacency.

The major challenge confronting those surrounded by winter is to not let it affect the arrival of spring, and our ability to recognize that arrival. Much of life is in learning to always remain part of the solution rather than allowing ourselves to become part of the problem.

Let winter find you planning for the arrival of spring, not contemplating the errors of commission and omission of last year. Let winter find you with a joyful countenance and a happy heart… with a good word for all those around you; with confidence in the future, not apprehension; with appreciation of the past, not regret; and finally, with gratitude for your achievements, adversities, and uncertainties of life, for each is a form of blessing which removes all limitations from the future possibilities of life." JR (Seasons of life).

 

May hay while the sun shines. It's trite but true. Especially with property investing. One of my IPs in Perth was rented for $440 per week now $280 per week. That doesn't hurt because I put aside extra for a rainy day.

 

Do people even put money aside for rainy days nowadays...It's like a revolutionary concept for many.

 

Smart investors do. Like in Perth when rents plummet, interest rates increase at the same time your IO loan reverts to P&I. Its called a buffer and lots of investors have a buffer

 

A buffer......

 

lol

I meant to say #EVERYONEISGONNAGOBROKE!!!

 

Is that you Mr Dent?

 

No, I'm Mr Salt

 

Savings are trendy:
Millennials Like Saving Money, Want to Save More
All the young peeps are doing it (well, not all):
‘Irresponsible’ Millennials Saving More Than Almost Every Other Group

 

Seems that's for the US (unless I read too quickly). I wonder how Aussies fare.

 

Jim teaches the most important part of the whole success equation starts from:
Lesson One: Your Personal Philosophy – The Set of the Sail

Get that right and you can achieve almost anything.
Get it wrong, and well.... no need to say more.

 

Yeah, I think so. I researched quickly too The Australian statistics are similar, in that the younger cohort are better savers than they are given credit for (ha, pun!).
Suncorp finds Gen Y are Australia’s best savers - CANSTAR

 

From the various reports I've read over the last several years - not really.
A large number of people all over the world live pay check to pay check - probably that's why Superannuation was invented I would say.
Another indicator is investing - not many people are property investors, but Tattslotto and gambling on horses, dogs, card flips and wheel spins are huge.
A lot of people buy shares, but most of the people I know who do (and it is not that big a percentage of those that I know) are not really shares "investors" - they are really shares "gamblers".