Reading a recent column by Sloan Wilkins in this newspaper stirred a familiar thought – my long-held philosophy on money.
It’s not the big splurges that shape our financial future, but the small, consistent spending that quietly accumulates over time.
A few dollars here and there may seem harmless, but over the years, it can amount to a significant sum.
With conflict continuing in the Middle East and global uncertainty never far from our doorstep, many of us may soon need to rethink how we spend.
For seniors, this isn’t new territory. It’s a mindset forged over decades – living within means, saving where possible, and preparing for the unexpected.
In fact, many older Australians have done this so well that they are now part of what economists are calling the “Great Wealth Transfer”.
Over the next two decades, it’s estimated that between $3.5 trillion and $5 trillion will be passed down from baby boomers and earlier generations to Gen X and Millennial Australians, stretching through to around 2045.
It’s a staggering figure – and one that governments are unlikely to ignore.
History suggests that where large pools of wealth exist, policy is never far behind.
Whether through taxation, eligibility thresholds, or changes to support systems, there will no doubt be increasing scrutiny on how this wealth is distributed and used.
We’re already seeing this play out. Government programs such as the National Disability Insurance Scheme (NDIS) and a growing range of in-home care services are shifting ex-pectations – encouraging, or requiring, those with means to contribute more to their own care.
Things can become very complicated.
And for those on the receiving end of an inheritance, the situation isn’t always straightforward either.
Perhaps now is the time to think ahead. To prepare, not just for prosperity, but for the complexities that come with it.
Because in the end, it’s not just about how much we leave behind – but how well we understand what it truly means.
