I think Ned and I are quite happy to have folk rent, Greg.
It’s paying off our properties.

A few general comments I have though:

1. For some people it is probably better to rent than buy. In all depends on the sums. One solution is not suitable for all so I don’t think we can say someone has taken the wrong approach because they rent, nor can we say you are guaranteed to come out on top by buying a home.

2. You haven’t made a cent until you sell gold, it pays no dividend or interest I am sure there are plenty of people sitting on nice unrealised gains when it comes to gold, but you can spend an unrealised gain

3. None of us can predict what will happen in the future. I don’t expect we are facing a “Mad Max” scenario in the years ahead but then again how can I be so sure?

4. It is not use to accumulating wealth and being unhappy. There are far more important things in life than stocks and investing.

Have a nice day!

Whatever floats your boats boys..

Hey look -- Gold is up +3.50
Wow…I wonder how much that makes it….okay bought 200oz @ $300 per oz and now its $1366oz AUD…what does that make it??? ummm can you help me out fellas….my calculator is jammed.

Oh well, my 4 year old will be happy her pram got her a healthy return..
Not bad for a SISTER aye??

You keep telling your kids to work hard and I’ll keep teaching my kids to let their MONEY work for them.

We’ll just keep counting the zeros on our calculator in our RENTED apartment while you go out there and work hard and make those banks RICH!!

Biker…you might wanna drop by Ned’s hood and pick him up in your Hybrid so that you can both contemplate how you got it so wrong…

Isn’t ASSUMPTION and IGNORANCE an ASS!!

That just about sums it up, Ned. I should have mentioned the second requirement, but was being sensitive… .

I’ve no issue with a family:

* renting rather buying;

* conserving and managing their resources well;

* learning useful lifeskills;

* being prepared for a rainy day.

The rest of the philosophy is as scary a manifesto as I’ve ever read. Perhaps it isn’t as unrealistic as it sounds, but there’s a distinct possibility these kids are home schooled. Let’s hope not. They need exposure to realistic, optimistic adults… . Doom’n'gloom is a very poor diet for children… .

Nope, for mugs like me, about the best that can be aspired to is that over multiple generations we just might lift ourselves out of the mire providing we work hard and all contribute our bit and none of us are ever excessively stupid. Such is life as my Irish namesake is reputed to have said.

“Ive been following some well known analysts and economist in the US closely these past months, and their predictions have not been very encouraging. In fact, they have been depressing..”

and

“I’m actually awaiting the “economic downturn” with open arms, because it’s my ticket to financial freedom.”

Depression to elation in a few minutes. Alarm bells ringing…

Good luck with that.

Only hard work helped us achieve financial freedom. It would have been great to have simply put our faith in some external event which suddenly enriched us, but we’ve never experienced such an event, nor to we expect to ever see it happen.

Both our sons, in their mid-twenties, have achieved that financial freedom you seek. We raised them to achieve goals, not to await a mysterious fortunate event which would bring them wealth. If rubbing your hands together warms your existence, it’s worthwhile.

Teaching your kids to trade their toys for precious metals sounds just a little extreme, especially for a 4 yo.
Have you considered counselling, to help you with your issues?

They got into self sufficiency as a rather full-on lifestyle thing when they retired. (One had been a computer programmer and the other was a superannuation bod with BIS Shrapnel.) The Uncle just turned 70 so I imagine they’d be happy enough of a hand. Providing I don’t eat too many of their pickled vegies while we’re waiting for the fruits of MY labour to mature.

And most especially if I showed up with some useful stuff like a crossbow and a couple of kilos of nails?

NOT that I consider such a scenario at all plausible in this country. But given some of the gloom ‘n doom predictions bouncing around these days, I agree with Biker when he says “If your preparations help you sleep better at night, then you’re spending your time wisely.”

And just feel to add that when you have done so, then I hope you will feel happy to get back to thinking about preparing for a somewhat less shocking future as well?

Its great to hear that you didn’t instill any fear whilst rearing your boys.

To clarify myself…My post was to merely share what is happening around the world -- in case you don’t see it on the 6 o’clock news in Australia.

This is not about FEAR and trying to spread doom and gloom. Its about not leaving any stones unturned, it’s about teaching the next generation to be “leaders” and not followers. It’s about empowering and encouraging our kids to use the grey matter between their ears for something other than texting.

To the contrary, I’ve actually been teaching my kids about ways to prosper in a downturn and how we can do things as a family to cope IF anything was to happen. And how they can help others..

My 4 year old and 11 year old are loving watering their garden, and they’re enjoying learning about how to recycle, and ways to save power, and how to make $150 from $10 by selling some of their things on ebay….Its hardly sowing fear.

If anything, its teaching them “values”. How to turn a “half glass empty” into a “half glass full”. Something that has gone amiss in society today.

I’m actually awaiting the “economic downturn” with open arms, because it’s my ticket to financial freedom.

Bye bye corrupt bankers I say..

By the way, just as a matter of interest, my kids ebay sales are going towards their physical gold and silver purchases. Who needs a mortgage.

Glad to hear that you have all the fresh veges that you need:)

Looking back on the raising of our two sons, I now realise we instilled unnecessary fears in them. It’s not unrealistic to want to protect them… and ourselves… from harm, but panaphobia isn’t healthy and may actually limit children’s coping abilities later on down the line.

We have all the fresh fruit, veges, eggs, olives, etc., we’ll ever need, thanks. No bunker, but our walls are 600mm thick.
High on a hill, we’ll be on an island should the inundation come.
My boat’s a hybrid (fuel and electric) so I think we’ll motor happily through any aquatic Armageddon… .

While you’re on the topic of “arks” -- look what happened to those that laughed at Noah.. Im sure they weren’t laughing when their backsides were being swept away..

Write me in a year or two and let me know if you still have a job.
Maybe I’ll invite you over for some fresh veges to share in my underground bunker:) And yeah, I’ll have some earplugs ready for you too..

Try this one:

http://www.outswimatsunami.com.ind

If your preparations help you sleep better at night, then you’re spending your time wisely.

Ah, just remembered three more concerns: nuclear war, volcanoes, and North Korea. These could all prove deafening, so add earplugs to the list. Come to think of it, rising sea levels probably mean that blueprints for an ark might be worthwhile:

http://www.arkblueprints.disastersimminent.com.uk

What Australians need to remember is that although Australia did not experience the full extent of the recession in 2008 as compared to other countries, it does not mean that it won’t be affected by what is predicted around the corner…

Three sectors that contain stocks that have benefited most from the China housing boom are industrials, energy and materials. These stocks make up about 39% of the entire Aust stockmarket. Because of huge demand from China for Aust resources, what is going to happen when the Chinese real estate bubble bursts…

http://www.businessinsider.com/the-chinese-real-estate-bubble-is-the-most-obvious-bubble-ever-2010-1

The abovementioned economists are predicting a stockmarket crash before the end of the year, one is even predicting another terrorist attack, similar to 9/11 before 2011 -- if the Aust. economy is so reliant upon the demand of China for its resources, what is going to happen when everything comes crashing down?

It doesnt even have to be with China’s economy…it could well be the US economy first (seeing as the US owe trillions to China too)

Bottom line is -- everyone needs to do their own due diligence and begin to dig deeper. Dont rely on mainstream media -- they wont tell you what is really going on in the world -- until its too late. Aust wont be immune to this next recession, in fact, it will affect Aust. in a big way because Aust is a commodity/resource focused country. Take the demand away, and what have you got? Alot of unemployment thats what..

Bloomberg Businessweek wrote an amazing article about China and its demand on Australian mining resources and what will happen to Aust. when it all goes bust.

Here are some things happening around the world that should make readers want to dig more:

Russia’s PM Putin has ceased all exports of wheat out of their country until sometime in 2011..

Australian farmers are bracing itself for a plague of locusts to destroy agriculture
http://www.abc.net.au/news/stories/2010/09/02/3000537.htm

Zimbabwe Food Shortages:
http://www.zimbabwemetro.com/headline/famine-early-warning-system-says-food-shortages-by-september/

US Food Shortages:

http://www.marketskeptics.com/2009/12/2010-food-crisis-for-dummies.html

All the natural disasters happening in the world at the moment, and the affect that they have on their economies and their exports.

The failed banks in the US:
http://www.fdic.gov/bank/individual/failed/banklist.html

Could this happen in Aust? Where is all your money kept? Do you know how safe your super is? Do you even know what investment option your provider has your lifesavings in?

Wouldn’t it be a good idea to call your superannuation provider and find what investment option your super is in…most people have their super in a default option, which is anywhere up to 90% in Aust shares, international shares and property. So if the market was to crash, as predicted by the above blokes -- there goes 90% of your super…Might pay to check what investment option your super is in. Its your hard earned money -- you have it in the hands of strangers who don’t really give two hoots if they lose it, really..the best person to monitor it is YOU!

People trying to withdraw their money from their bank accounts and the banks don’t have enough money:

http://shadow.foreignpolicy.com/posts/2010/09/03/tackle_corruption_before_a_kabul_bank_bailout

We all need to remember, just because these things are not happening in our backyards, it does not mean that they wont affect us in some way or another. We need to be prepared for anything and begin to research and find out what we can do NOW to prepare for the worst. I mean its better to be safe then sorry..

I have two young kids and I have already begun to stockpile food -- rice, flour, powdered milk, tinned food, medical supplies, gas oven, water, collated all my important documents and made sure that I have cash on hand all the time.

No the world isn’t going to end tomorrow (I pray), but when the prices for food, medical and housing skyrocket -- then I want to know that I can feed my kids with what I have put aside.

If there is a natural disaster of whatever kind, at least I know that I have some supplies that can last me a couple months..and even for my neighbours too.

If a natural disaster cuts off power supply and there is no access to ATMs or banks, at least I know I have cash on hand. (Pure example -- earthquake in Christchurch NZ a week ago -- people couldnt buy food from the only store that was not damaged, because the EFTPOS was down and they didnt have cash on them).

Ive started buying non hybrid seeds and planting my own veg garden. I live in an apartment too..so there isnt any excuses not to.

At the end of the day, no one care rely on someone else to tell you what to do or even on mainstream media -- you have to just trust your own instincts and be prepared for anything!

Ive always been an optimistic person who sees the glass as being half full -- but in this case, Im being a realist and I have two other lives in my hands, and I don’t want to have to explain to them why mummy wasnt better prepared..

Be encouraged readers -- whatever is around the corner, educate yourself on how you can turn the predicted economic hardship into an opportunity to prosper:)

Knowledge is power -- only when it is applied!

We’ll look at this Monday.

I would also like people given more choice regarding their superannuation, for example why not allow people to direct some of their superannuation towards reducing their mortgage? (or help raise their children?) It’s their money isn’t it?