What constitutes items of Personal “Value”?

Background

Over my working career I was called on to find out what key items were / are that one might take into account that constitutes “value”.

Largely working alone, I started to figure out, that my industry and profession (valuers / appraisers) were / had been / still are converting undefined “numbers” into Market Value (IVS 30.1). How could that be?

I figured out that if one could not define and understand one’s starting point; how could one’s end point be considered realistic? If you could not and did not test it aka the outcome; how did you know that you had undertaken your task?

I then realized that very few people question anything. They figure out that if that is the accepted way of doing something; well we will just follow!

And so the Market Rent definition came into being (IVS 40.1; Gilbert, D. 1995). And from there to a Body of Knowledge (Gilbert, D. 1523 – 2024) including our Internationally Scalable SaaS GEM Lease ? which can be accessed here: www.3DRetailEconomics.com.au.

Where does the “stuff” come from that constitutes Personal Value?

So how and why does one get on to what constitutes Personal Value? And why? A colleague (Australian with typical Aussie sense of humour) said: “Keep” or “Ditch”. And that sums it up.

Over one’s lifetime one picks up a partner, then a wife, then two wives, then children. Parents pass away, they have accumulated “stuff” from their parents and grandparents. Some had collecting fetishes, others trapsed around the world finding artefacts. One goes to Sunday Markets etc. there are birthdays and Christmases.

We consolidated “stuff” from six family homes and two family businesses! We have a modest 230 year old home overseas and a reasonable large but nice home in Australia.

Whilst I have had a career in defining and “understanding” what constitutes “value” I am so disinterested in money “value” itself it would surprise many. My partner is interested in some of these things. ???????

I tried to contemplate what comes up as defining “Personal Value” and here are the five key areas I feel have merit. They are:

• Utility Value;
• Sentimental Value;
• Financial Value;
• Investment Value; and
• Recreational Value.

What do you believe? Am I missing any key area of what constitutes “Personal Value”.

During our discussions Historical Value came up; I suggested that the first three dot points take care of that. Status Symbols came up. I suggest / ed that that it is of no relevance whatsoever. That is someone else’s view or opinion of something. t I think not? It has utility value to me; it is low mileage and is in fairly good condition.

So lets discuss the items in globo, then each item separately, then a combination of same. ??

Does Utility Value; Sentimental Value; Financial Value; Investment Value; and Recreational Value cover all items of Personal Value ?

I would argue, that if one weighs up all the items that one possesses, that the five categories listed above ought to cover everything that one owns.

Obviously it is up to each individual person, what item or thing tangible or intangible falls into what category. And it will differ from person to person.

Much of my “stuff” is Utility Value. I look after that Stuff. Items of sentimental value are few and far between. I appreciate well made hardwood furniture, but it is not an obsession. I love the craftsmanship that has gone into it vs looking at the rubbish that is offered For Sale today. Much of it plastic; it will fall to pieces soon; it will rust.

How much stuff that one buys ends up on the tip in under a year and it is oft called GDP economic activity? ?

Many things mean different things to many people. Some people believe that “stuff” is of Sentimental Value to them. How much time does one have in one’s lifetime to spend on sentimental “value” of things when there is so much more to do out there? There are gardens to admire, there is nature, there are beautiful forests and walks to go on.

Some people place “value” on collections: wine, art, cars, coins, stamps, memorabilia, etc. which may have Financial Value to someone else who sees value in it.

Investment Value ought to cover one’s investments in property, shares, intellectual property, etc. if relevant.

And I believe that we all need time out; recreation time that is. Whether it be sport, taking children to the playground, theatre, movies, a seaside home or apartment and so on. ?

Briefly I believe that:

Utility Value: the value of something capable of being used to accomplish something eg. to cook, fix something, mow the lawn, etc.

Sentimental Value: the value of something to someone which one is emotionally attached to.

Financial Value: something or anything that could have utility value, sentimental value, financial value in itself, recreational value that can be turned into money.

Investment Value: anything that intentionally or unintendedly is something that generates some form of income aka property, shares, farming income, royalties, etc.

Recreational Value: as the name suggests, sports, holiday, riding a horse, camping, an eco-farm, etc.

are the things that constitute Personal Value.

Conclusion

I cannot think of anything that cannot be covered by these five items above. I would welcome any of your views out there.

On the flipside are liabilities. Tax liabilities, getting “value for money” from our Governments, debt, personal health, etc. etc. gambling, addictions to alcohol and recreational drugs and NOT managing one’s personal affairs.

The lack of “control” over female fertility; having too many children in some parts of the World; men “controlling” their women by expecting of them to continue to breed but they cannot and do not take responsibility for them.

I am astonished at the lack of financial literacy out there. The level of trust that many place in their financial advisors who are using their legitimate income streams to feed off.

It stuns me to repeatedly hear that our younger generations pitch out investments in hardwood furniture that may have been in families for a century or two, which will last many more lifetimes, to buy “stuff” which then needs to be replaced!

There are people out there whose houses and apartments are getting bombed by Mr Putin’s Russia, by Israel (and vice versa the Palestinians in retaliation) etc. etc. and what chances do they have of building communities, building memories, having children, contributing to stability in their countries. They become a burden on other people and other countries. Each country needs to be able to fend for itself and ought to be self-sustainable.

We (our generation) in Australia are leaving our youngsters in the lurch by thinking and believing that we could and did start up in this country to offer our children stability, homes to grow up in, often having a parent or working parent at home to take our children to school and sport. And somehow expect the same of them! In many instances it is impossible. We are losing a generation of youngsters because of our folly.

Australia has become so egalitarian it is NOT true. Governments are ripping our taxes out of the system in their wages and entitlements; house prices are now way way way out of reach of ordinary people and particularly our children trying to do what we have done!

Our Banks and Financial Institutions pillorying “The People” must be regulated and punished NOW for bad lending practices. NOW. ????

There needs to be serious conversations and decision-making right now about these things and action taken.

What I have covered in what I believe is “Personal Value”, can only be continued if we honestly invest in the future of our children. We need to value what we have and put our children in our positions so that they can grow and thrive.

? Donald E Gilbert 3/7/2024