It used to be said that there was a four generation cycle when it came to making and losing money.

The first generation was the one that began poor and worked hard to make a modest living and to ensure that the children (the second generation) of the family got a good start in life, generally, although not always, through education. This education would tend to be in a vocational area.

The second generation took its education and worked hard and applied its inheritance to social and personal improvement. This generation built up the family fortune and was sustained by the memory of the first generation and its sacrifice. Its children (the third generation) were sent to schools of high social standing rather than those with a vocational bent.

The third generation remained in touch with the grandparents, but was comfortable and consolidated rather than continued to expand the wealth base. This generation’s education was again directed at social status rather than enhanced wealth-creation.

The fourth generation had no direct knowledge of the sacrifices of either of the first two generation, believed that comfort was its right and spent the family’s wealth in pursuit of its increasingly expensive desires in an attempt to keep up with their social betters. Unless the fortune was very large, it was easily dissipated in this futile pursuit.

Hence, from rags to riches in three easy steps.