The 5-Minute Management Course
Lesson 1:
A man is getting into the shower just as his wife is finishing up her shower, when the doorbell rings. The wife quickly wraps herself in a towel and runs downstairs. When she opens the door, there stands Bob, the next-door neighbor. Before she says a word, Bob says, ‘I’ll give you $800 to drop that towel’. After thinking for a moment, the woman drops her towel and stands naked in front of Bob After a few seconds, Bob hands her $800 and leaves. The woman wraps back up in the towel and goes back upstairs. When she gets to the bathroom, her husband asks, ‘Who was that?’ ‘It was Bob the next door neighbor,’ she replies. ‘Great,’ the husband says, ‘did he say anything about the $800 he owes me?’
Moral of the story:
If you share critical information pertaining to credit and risk with your shareholders in time, you may be in a position to prevent avoidable exposure.
Lesson 2:
A priest offered a Nun a lift. She got in and crossed her legs, forcing her gown to reveal a leg. The priest nearly had an accident. After controlling the car, he stealthily slid his hand up her leg. The nun said, ‘Father, remember Psalm 129?’ The priest removed his hand. But, changing gears, he let his hand slide up her leg again. The nun once again said, ‘Father, remember Psalm 129?’ The priest apologized ‘Sorry sister but the flesh is weak.’ Arriving at the convent, the nun sighed heavily and went on her way. On his arrival at the church, the priest rushed to look up Psalm 129 It said, ‘Go forth and seek, further up, you will find glory.’
Moral of the story:
If you are not well informed in your job, you might miss a great opportunity.
Lesson 3:
A sales rep, an administration clerk, and the manager are walking to lunch when they find an antique oil lamp. They rub it and a Genie comes out. The Genie says, ‘I’ll give each of you just one wish.’ ‘Me first! Me first!’ says the admin clerk. ‘I want to be in the Bahamas , driving a speedboat, without a care in the world.’ Poof! She’s gone. ‘Me next! Me next!’ says the sales rep. ‘I want to be in Hawaii, relaxing on the beach with my personal masseuse, an endless supply of Pina Coladas and the love of my life.’ Poof! He’s gone. ‘OK, you’re up,’ the Genie says to the manager. The manager says, ‘I want those two back in the office after lunch.’
Moral of the story:
Always let your boss have the first say.
Lesson 4:
An eagle was sitting on a tree resting, doing nothing. A small rabbit saw the eagle and asked him, ‘Can I also sit like you and do nothing?’ The eagle answered: ‘Sure , why not.’ So, the rabbit sat on the ground below the eagle and rested. All of a sudden, a fox appeared, jumped on the rabbit and ate it.
Moral of the story:
To be sitting and doing nothing, you must be sitting very, very high up.
Lesson 5:
A turkey was chatting with a bull. ‘I would love to be able to get to the top of that tree,’ sighed the turkey, ‘but I haven’t got the energy.’ ‘Well, why don’t you nibble on some of my droppings?’ replied the bull. ‘They’re packed with nutrients.’ The turkey pecked at a lump of dung, and found it actually gave him enough strength to reach the lowest branch of the tree. The next day, after eating some more dung, he reached the second branch. Finally after a fourth night, the turkey was proudly perched at the top of the tree. He was promptly spotted by a farmer, who shot him out of the tree.
Moral of the story:
BullSh*t might get you to the top, but it won’t keep you there.
Lesson 6:
A little bird was flying south for the Winter. It was so cold the bird froze and fell to the ground into a large field. While he was lying there, a cow came by and dropped some dung on him. As the frozen bird lay there in the pile of cow dung, he began to realize how warm he was. The dung was actually thawing him out! He lay there all warm and happy, and soon began to sing for joy. A passing cat heard the bird singing and came to investigate. Following the sound, the cat discovered the bird under the pile of cow dung, and promptly dug him out and ate him.
Morals of the story:
(1) Not everyone who sh*ts on you is your enemy.
(2) Not everyone who gets you out of sh*t is your friend.
(3) And when you’re in deep sh*t, it’s best to keep your mouth shut!
Monday, October 12, 2009
Wednesday, April 1, 2009
Best Foods for a Flat Belly
What if someone told you that the way you eat could whittle your waistline? Sure, you'd think. Give up carbs and rely on rabbit food. Not true! I'm happy to tell you that there are other, yummier ways to go. Certain foods and styles of eating can indeed help flatten your belly (and everywhere else, for that matter). Try these tips and you'll uncover an amazing middle in no time.
Gimme a C: I love pink grapefruit and that's a good thing, since research has found that foods that are naturally rich in vitamin C—think citrus fruit, cantaloupe and red peppers—can help reduce fat absorption. In fact, skip it and you may see your middle expand, since diets low in vitamin C have been linked to bigger waistlines. Meet your daily goal of 75 milligrams by snacking on an orange or a cup of strawberries. See how these small changes can add up to big results.
Tea up: Women with the highest consumption of catechins, the plant-based antioxidants in tea that may boost fat burn, put on fewer pounds over 14 years than those who drank less tea, The American Journal of Clinical Nutrition reveals. Try to choose green or white varieties, which contain the most catechins. Learn how to maximize the benefits of tea and other superfoods.
Peel it off: Reach for a banana and you'll banish bloat faster than you can say Buddha belly. The fruit contains 422 mg of potassium, which controls the amount of puff-producing sodium in your system. Toss a banana in your bag for a fabulous ab-flattening snack. Try our Flat Abs Fast plan for more bloat-reducing tips and tricks.
Go low: Consuming just one meal of low-glycemic-index foods, those that your body digests slowly, can help you feel fuller all day so you're less likely to pack your tummy with treats, a study in the Journal of the American College of Nutrition reports. Low-GI foods include oatmeal and vegetables (sorry, not potatoes), as well as some fruit like grapefruit and blueberries. Oatmeal Meatballs are a tasty way to curb cravings.
Stroll away your sweet craving: Loco for cocoa? Me, too. A little dark chocolate is fine, but if you've already hit your limit, try lacing up your sneakers! Chocolate lovers who walked for 15 minutes reported reduced hankerings during the walk and even afterward, according to a study in the journal Appetite.
Ditch high-fructose corn syrup: Scan labels and you're likely to see high-fructose corn syrup on many ingredient lists...even on things like tomato sauce! When you do, put down that jar and look for something else. Why? High-fructose corn syrup can cause a surge in your blood sugar, and some research suggests it messes up your hunger and satiety signals, like leptin, leaving you less satisfied and causing you to eat more. When leptin responses fail, it's tougher to control appetite. The result: Extra calories get deposited as fat. To prevent this, trade packaged foods with high-fructose corn syrup for ones with healthy fats and fiber—think veggies, hummus, nuts or sunflower seeds.
Snap your snack: Taking a photo of your plateful of food can keep you slim. People who took pictures of everything they ate for five days reported consuming fewer snacks and being less likely to go back for seconds than during a week-long period in which they kept a written food diary, a study from the University of Wisconsin at Madison finds. Try capturing your meals for a week to help eyeball portion sizes as well as color variety—aim for more green, less white (unless it's cauliflower). See an example of this, and get ideas for healthy, photo-worthy meals of your own, at Eat Like Me.
Thursday, March 19, 2009
How Shampoo Can Make Hair Look Worse
Americans love to shampoo. We lather up an average of 4.59 times a week, twice as much as Italians and Spaniards, according to shampoo-maker Procter & Gamble.
But that's way too often, say hair stylists and dermatologists. Daily washing, they say, strips the hair of beneficial oil (called sebum) and can damage our locks.
Shampoo Is Big Business
The current trend of frequent shampoos may have started on May 10, 1908, when the New York Times published a column advising women that it was OK to wash their hair every two weeks. At that time, once a month was the norm.
Decades later, TV marketing campaigns began to convince us that daily washing was the thing to do. A 1970s Faberge ad for Farrah Fawcett shampoo is one example.
"All you have to do is watch her running in slow motion on a beach with her hair flopping gracefully in the wind," says Steve Meltzer, a former ad executive. The idea was, "Wash your hair with this stuff, and you, too, can be like Farrah Fawcett," Meltzer says.
Madison Avenue sold people on the idea that they could shampoo their way back to beauty.
Ads also convinced us that daily hair washing is healthy. Remember the Breck girls? Or how about Christie Brinkley's body-building for hair ad with Prell?
Skipping Shampoos Is, Well, Un-American
Americans took easily to the idea that we should shampoo frequently. And lots of us find it disgusting to shampoo any less than once a day. Take some fitness-conscious college students from Georgetown University, for example. When I told them about the old-time advice to wash once a month, they almost gagged.
"That is way too little hair shampooing," laughs Jane Caudell-Feagan.
"If I don't shower every day, my hair gets greasy, so I think it's completely heinous," says her friend Ashley Carlini. After a workout, they say, it would be disgusting not to wash your hair.
Eco-Conscious 'No-'Poo' Movement
Given our cultural propensity to lather up frequently, it may be shocking that in some eco-conscious circles of society, some people are giving up shampoo.
"There's a lot of people doing this no-shampoo movement," says 20-something blogger Jeanne Haegele. She writes a blog called LifeLessPlastic.
In an attempt to buy fewer items with plastic packaging, Haegele recently went three months without using any shampoo. Instead, she washed her hair with baking soda twice a week and conditioned it with a vinegar rinse.
She says her hair didn't smell, and her friends were very supportive. "Maybe they were secretly wondering why I smelled like a jar of pickles," she says jokingly.
She ended the no-'poo experiment after developing a bad case of dandruff, but Haegele says she might try it again.
She recalls the biggest surprise was that her hair didn't get very greasy. For now, she's using shampoo bars a few times a week.
Dermatologist Recommends Shampooing Less
Experts say Haegele's observations are not flaky. As she washed less, her sebaceous glands began producing less sebum oil.
"If you wash your hair every day, you're removing the sebum," explains Michelle Hanjani, a dermatologist at Columbia University. "Then the oil glands compensate by producing more oil," she says.
She recommends that patients wash their hair no more than two or three times a week.
There's also a lot of variation among hair types. African-Americans and people with curly hair can go even longer between washes compared to folks with straight hair.
So, it seems, less is more. And maybe our grandmothers were on to something after all.
Source: Yahoo
Wednesday, January 14, 2009
Attracting Abundance and Prosperity: How To Have An Abundant Business and Life
People have different ways of attracting abundance and prosperity into their lives. Entrepreneurs, in particular, seem to be the most concerned about this and have a variety of ways hidden underneath their sleeves.
If you’re just starting a business, or if your business is not exactly raking in the dough, then this article is for you. If you want to learn the secrets of attracting abundance and prosperity into your business – and your personal life as well, read on!
1) Visualization Techniques
For a few minutes each day, close your eyes and visualize better clients or more customers coming in to your store.
The more detailed your mental images are, the better. Visualize with success already in your heart and in your mind… and the rest will follow. Attracting abundance and prosperity into your business starts with the belief that success is already yours.
With visualization techniques, you’re imagining and experiencing what you want to happen as if it’s occurring now. This will help augment your belief system even if you have no previous experience.
2) Use Positive Affirmations
Use positive statements as much as possible. You can even create a poster that says something like “I am attracting abundance and prosperity into my business.”
Hang it right where you can see it every day. This will help you affirm that your business is indeed successful.
3) Get Rid of Clutter
Clutter has the tendency to drain you of energy. Other people also believe that clutter tends to chase abundance and prosperity away.
Either way, being organized helps you concentrate better on your business, and allows you to feel better about yourself. Keep in mind that it is your feelings that ultimately affect the flow of your business.
Everybody wants to know the secrets of attracting abundance and prosperity into their lives. Apply these steps in your business and other aspects of your life, and experience the positive changes that will occur.
If you’re just starting a business, or if your business is not exactly raking in the dough, then this article is for you. If you want to learn the secrets of attracting abundance and prosperity into your business – and your personal life as well, read on!
1) Visualization Techniques
For a few minutes each day, close your eyes and visualize better clients or more customers coming in to your store.
The more detailed your mental images are, the better. Visualize with success already in your heart and in your mind… and the rest will follow. Attracting abundance and prosperity into your business starts with the belief that success is already yours.
With visualization techniques, you’re imagining and experiencing what you want to happen as if it’s occurring now. This will help augment your belief system even if you have no previous experience.
2) Use Positive Affirmations
Use positive statements as much as possible. You can even create a poster that says something like “I am attracting abundance and prosperity into my business.”
Hang it right where you can see it every day. This will help you affirm that your business is indeed successful.
3) Get Rid of Clutter
Clutter has the tendency to drain you of energy. Other people also believe that clutter tends to chase abundance and prosperity away.
Either way, being organized helps you concentrate better on your business, and allows you to feel better about yourself. Keep in mind that it is your feelings that ultimately affect the flow of your business.
Everybody wants to know the secrets of attracting abundance and prosperity into their lives. Apply these steps in your business and other aspects of your life, and experience the positive changes that will occur.
How to Build the Reading Habit
To thrive in this age of knowledge, you need to increase the quality of your knowledge. It's not enough to just know about something, you need to be knowledgeable on that subject. While there are several ways to increase your knowledge, perhaps the best way is reading. Reading allows you to learn new knowledge easily from the best people in the world. While it may be difficult to meet them in person, through reading you can learn about their thoughts and life.
That's why building the reading habit is important. You need to build the reading habit to thrive in this age of knowledge. Otherwise it will be difficult for you to compete with other people who continuously learn new knowledge through their reading.
To build the reading habit, first of all you should allocate time for reading. You need to allocate time every day to read books, magazines, and other forms of reading. Even if you allocate just one hour a day, in a month you will have read for about thirty hours. That's a significant amount of time.
There's an important attitude you should have to build the reading habit and that is curiosity. If you are curious, it will be much easier to build the reading habit. Since you always have questions in your mind, you will naturally want to read more to find the answers of those questions. On the other hand, without curiosity building the reading habit will be much more difficult.
One more thing that will help you a lot to build reading habit is to bring a book wherever you go. This way when you can use idle time throughout the day for reading. When you are waiting in a queue, for example, you can use the time for reading. You will learn much more if you bring a book wherever you go.
By applying these simple tips, you make reading an indispensable part of your life. While in the short term you might not see a difference, in the long term you will be glad with your choice. By having the reading habit, you will thrive in this age of knowledge.
That's why building the reading habit is important. You need to build the reading habit to thrive in this age of knowledge. Otherwise it will be difficult for you to compete with other people who continuously learn new knowledge through their reading.
To build the reading habit, first of all you should allocate time for reading. You need to allocate time every day to read books, magazines, and other forms of reading. Even if you allocate just one hour a day, in a month you will have read for about thirty hours. That's a significant amount of time.
There's an important attitude you should have to build the reading habit and that is curiosity. If you are curious, it will be much easier to build the reading habit. Since you always have questions in your mind, you will naturally want to read more to find the answers of those questions. On the other hand, without curiosity building the reading habit will be much more difficult.
One more thing that will help you a lot to build reading habit is to bring a book wherever you go. This way when you can use idle time throughout the day for reading. When you are waiting in a queue, for example, you can use the time for reading. You will learn much more if you bring a book wherever you go.
By applying these simple tips, you make reading an indispensable part of your life. While in the short term you might not see a difference, in the long term you will be glad with your choice. By having the reading habit, you will thrive in this age of knowledge.
Thursday, August 28, 2008
10 Things Millionaires Won't Tell You
1. "You may think I'm rich, but I don't."
A million dollars may sound like a fortune to most people, and folks with that much cash can't complain — they're richer than 90 percent of U.S. households and earn $366,000 a year, on average, putting them in the top 1 percent of taxpayers. But the club isn't so exclusive anymore. Some 10 million households have a net worth above $1 million, excluding home equity, almost double the number in 2002. Moreover, a recent survey by Fidelity found just 8 percent of millionaires think they're "very" or "extremely" wealthy, while 19 percent don't feel rich at all. "They're worried about health care, retirement and how they'll sustain their lifestyle," says Gail Graham, a wealth-management executive at Fidelity.
Indeed, many millionaires still don't have enough for exclusive luxuries, like membership at an elite golf club, which can top $300,000 a year. While $1 million was a tidy sum three decades ago, you'd need $3.6 million for the same purchasing power today. And half of all millionaires have a net worth of $2.5 million or less, according to research firm TNS. So what does it take to feel truly rich? The magic number is $23 million, according to Fidelity.
2. "I shop at Wal-Mart..."
They may not buy the 99-cent paper towels, but millionaires know what it is to be frugal. About 80 percent say they spend with a middle-class mind-set, according to a 2007 survey of high-net-worth individuals, published by American Express and the Harrison Group. That means buying luxury items on sale, hunting for bargains — even clipping coupons.
Don Crane, a small-business owner in Santa Rosa, Calif., certainly sees the value of everyday saving. "We can afford just about anything," he says, adding that his net worth is over $1 million. But he and his wife both grew up on farms in the Midwest — where nothing was wasted — and his wife clips coupons to this day. In fact, most millionaires come from middle-class households, and roughly 70 percent have been wealthy for less than 15 years, according to the AmEx/Harrison survey. That said, there are plenty of millionaires who never check a price tag. "I've always wanted to live above my means because it inspired me to work harder," says Robert Kiyosaki, author of the 1997 best seller Rich Dad, Poor Dad. An entrepreneur worth millions, Kiyosaki says he doesn't even know what his house would go for today.
3. "...but I didn't get rich by skimping on lattes."
So how do you join the millionaires' club? You could buy stocks or real estate, play the slots in Vegas — or take the most common path: running your own business. That's how half of all millionaires made their money, according to the AmEx/Harrison survey. About a third had a professional practice or worked in the corporate world; only 3 percent inherited their wealth.
Regardless of how they built their nest egg, virtually all millionaires "make judicious use of debt," says Russ Alan Prince, coauthor of "The Middle-Class Millionaire." They'll take out loans to build their business, avoid high-interest credit card debt and leverage their home equity to finance purchases if their cash flow doesn't cut it. Nor is their wealth tied up in their homes. Home equity represents just 11 percent of millionaires' total assets, according to TNS. "People who are serious about building wealth always want to have a mortgage," says Jim Bell, president of Bell Investment Advisors. His home is probably worth $1.5 million, he adds, but he owes $900,000 on it. "I'm in no hurry to pay it off," he says. "It's one of the few tax deductions I get."
4. "I have a concierge for everything."
That hot restaurant may be booked for months — at least when Joe Nobody calls to make reservations. But many top eateries set aside tables for celebrities and A-list clientele, and that's where the personal concierge comes in. Working for retainers that range anywhere from $25 an hour to six figures a year, these modern-day butlers have the inside track on chic restaurants, spa reservations, even an early tee time at the golf club. And good concierges will scour the planet for whatever their clients want — whether it's holy water blessed personally by the Pope, rare Mexican tequila or artisanal sausages found only in northern Spain. "For some people, the cost doesn't matter," says Yamileth Delgado, who runs Marquise Concierge and who once found those sausages for a client — 40 pounds of chorizo that went for $1,000.
Concierge services now extend to medical attention as well. At the high end: For roughly $2,000 to $4,000 a month, clients can get 24-hour access to a primary-care physician who makes house calls and can facilitate admission to a hospital "without long waits in the emergency room," as one New York City service puts it.
5. "You don't get rich by being nice."
John D. Rockefeller threatened rivals with bankruptcy if they didn't sell out to his company, Standard Oil. Bill Gates was ruthless in building Microsoft into the world's largest software firm (remember Netscape?). Indeed, many millionaires privately admit they're "bastards in business," says Prince. "They aren't nice guys." Of course, the wealthy don't exactly look in the mirror and see Gordon Gekko either. Most millionaires share the values of their moderate-income parents, says Lewis Schiff, a private wealth consultant and Prince's coauthor: "Spending time with family really matters to them." Just 12 percent say that what they want most to be remembered for is their legacy in business, according to the AmEx/Harrison study.
Millionaires are also seemingly undaunted by failure. Crane, for example, now runs a successful company that screens tenants for landlords. But his first business venture, a real estate partnership, went bankrupt, costing him $20,000 — more than his house was worth at the time. "It was the most depressing time in my life, but it was the best lesson I ever learned," he says.
6. "Taxes are for little people."
Most millionaires do pay taxes. In fact, the top 1 percent of earners paid nearly 40 percent of federal income taxes in 2005 — a whopping $368 billion — according to the Internal Revenue Service. That said, the wealthy tend to derive a higher portion of their income from dividends and capital gains, which are taxed at lower rates than wages (15 percent for long-term capital gains versus 25 percent for middle-class wages). Also, high-income earners pay Social Security tax only on their first $97,500 of income.
But the big savings come from owning a business and deducting everything related to it. Landlords can also depreciate their commercial properties and expenses like mortgage interest. And that's without doing any creative accounting. Then there are the tax shelters, trusts and other mechanisms the superrich use to shield their wealth. An estimated 2 million Americans have unreported accounts offshore, and income from foreign tax shelters costs the U.S. $20 billion to $40 billion a year, according to the IRS. Indeed, "an increasing number of people want to establish an offshore fund," says Vernon Jacobs, a certified public accountant in Kansas who specializes in legal foreign accounts.
7. "I was a B student."
Mom was right when she said good grades were the key to success — just not necessarily a big bank account. According to the book "The Millionaire Mind," the median college grade point average for millionaires is 2.9, and the average SAT score is 1190 — hardly Harvard material. In fact, 59 percent of millionaires attended a state college or university, according to AmEx/Harrison.
When asked to list the keys to their success, millionaires rank hard work first, followed by education, determination and "treating others with respect." They also say that what they absorbed in class was less important than learning how to study and stay disciplined, says Jim Taylor, vice chairman of the Harrison Group. Granted, 48 percent of millionaires hold an advanced degree, and elite colleges do open doors to careers on Wall Street and in Silicon Valley (not to mention social connections that grease the wheels). But for every Ph.D. millionaire, there are many more who squeaked through school. Kiyosaki, for one, says the only way he survived college calculus was by "sitting near" the smart kids in class — "we cheated like crazy," he says.
8. "Like my Ferrari? It's a rental."
Why spend $3,000 on a Versace bag that'll be out of style as soon as next season when you can rent it for $175 a month? For that matter, why blow $250,000 on a Ferrari when for $25,000 it can be yours for a few weekends a year? Clubs that offer "fractional ownership" of jets have been popular for some time, and now the concept has extended to other high-end luxuries like exotic cars and fine art. How hot is the trend? More than 50 percent of millionaires say they plan to rent luxury goods within the next 12 months, according to a survey by Prince & Associates. Handbags topped the list, followed by cars, jewelry, watches and art. Online companies like Bag Borrow or Steal, for example, cater to customers who always want new designer accessories and jewelry, for prices starting at $15 a week.
For Suzanne Garner, a millionaire software engineer in Santa Clara, Calif., owning a $100,000 car didn't make financial sense (she drives a Mazda Miata). Instead, Garner pays up to $30,000 in annual membership fees to Club Sportiva, a fractional-ownership car club in San Francisco that lets her take out Ferraris, Lamborghinis and other exotic vehicles on weekends. "I'm all about the car," she says. And so are other people, it seems. While stopped at a light in a Ferrari recently, Garner received a marriage proposal from a guy in a pickup truck. (She declined the offer.)
9. "Turns out money can buy happiness."
It may not be comforting to folks who aren't minting cash, but the rich really are different. "There's no group in America that's happier than the wealthy," says Taylor, of the Harrison Group. Roughly 70 percent of millionaires say that money"created" more happiness for them,he notes. Higher income also correlates with higher ratings in life satisfaction, according to a new study by economists at the Wharton School of Business. But it's not necessarily the Bentley or Manolo Blahniks that lead to bliss. "It's the freedom that money buys," says Betsey Stevenson, coauthor of the Wharton study.
Concomitantly, rates of depression are lower among the wealthy, according to the Wharton study, and the rich tend to have better health than the rest of the population, says James Smith, senior labor economist at the Rand Corporation. (In fact, health and happiness are as closely correlated as wealth and happiness, Smith says.) The wealthy even seem to smile and laugh more often, according to the Wharton study, to say nothing of getting treated with more respect and eating better food. "People experience their day very differently when they have a lot of money," Stevenson says.
10. "You worry about the Joneses — I worry about keeping up with the Trumps."
Wealth may go a long way toward creating happiness, but the middle-class rich still can't afford the life of the billionaire next door — the guy who writes charity checks for $100,000 and retreats to his own private island. "What makes people happy isn't how much they're making," says Glenn Firebaugh, a sociologist at Pennsylvania State University. "It's how much they're making relative to their peers."
Indeed, for all their riches, some 40 percent of millionaires fear that their standard of living will decline in retirement and that their money will run out before they die, according to Fidelity. Of course, it may not help if their lifestyle is so lavish that they're barely squeaking by on $400,000 a year. "You can always be happier with more money," says Stevenson. "There's no satiation point." But that's the trouble with keeping up with the Trumps. "Millionaires are always looking up," says Schiff, "and think it's better up there."
Source: Smart Money
A million dollars may sound like a fortune to most people, and folks with that much cash can't complain — they're richer than 90 percent of U.S. households and earn $366,000 a year, on average, putting them in the top 1 percent of taxpayers. But the club isn't so exclusive anymore. Some 10 million households have a net worth above $1 million, excluding home equity, almost double the number in 2002. Moreover, a recent survey by Fidelity found just 8 percent of millionaires think they're "very" or "extremely" wealthy, while 19 percent don't feel rich at all. "They're worried about health care, retirement and how they'll sustain their lifestyle," says Gail Graham, a wealth-management executive at Fidelity.
Indeed, many millionaires still don't have enough for exclusive luxuries, like membership at an elite golf club, which can top $300,000 a year. While $1 million was a tidy sum three decades ago, you'd need $3.6 million for the same purchasing power today. And half of all millionaires have a net worth of $2.5 million or less, according to research firm TNS. So what does it take to feel truly rich? The magic number is $23 million, according to Fidelity.
2. "I shop at Wal-Mart..."
They may not buy the 99-cent paper towels, but millionaires know what it is to be frugal. About 80 percent say they spend with a middle-class mind-set, according to a 2007 survey of high-net-worth individuals, published by American Express and the Harrison Group. That means buying luxury items on sale, hunting for bargains — even clipping coupons.
Don Crane, a small-business owner in Santa Rosa, Calif., certainly sees the value of everyday saving. "We can afford just about anything," he says, adding that his net worth is over $1 million. But he and his wife both grew up on farms in the Midwest — where nothing was wasted — and his wife clips coupons to this day. In fact, most millionaires come from middle-class households, and roughly 70 percent have been wealthy for less than 15 years, according to the AmEx/Harrison survey. That said, there are plenty of millionaires who never check a price tag. "I've always wanted to live above my means because it inspired me to work harder," says Robert Kiyosaki, author of the 1997 best seller Rich Dad, Poor Dad. An entrepreneur worth millions, Kiyosaki says he doesn't even know what his house would go for today.
3. "...but I didn't get rich by skimping on lattes."
So how do you join the millionaires' club? You could buy stocks or real estate, play the slots in Vegas — or take the most common path: running your own business. That's how half of all millionaires made their money, according to the AmEx/Harrison survey. About a third had a professional practice or worked in the corporate world; only 3 percent inherited their wealth.
Regardless of how they built their nest egg, virtually all millionaires "make judicious use of debt," says Russ Alan Prince, coauthor of "The Middle-Class Millionaire." They'll take out loans to build their business, avoid high-interest credit card debt and leverage their home equity to finance purchases if their cash flow doesn't cut it. Nor is their wealth tied up in their homes. Home equity represents just 11 percent of millionaires' total assets, according to TNS. "People who are serious about building wealth always want to have a mortgage," says Jim Bell, president of Bell Investment Advisors. His home is probably worth $1.5 million, he adds, but he owes $900,000 on it. "I'm in no hurry to pay it off," he says. "It's one of the few tax deductions I get."
4. "I have a concierge for everything."
That hot restaurant may be booked for months — at least when Joe Nobody calls to make reservations. But many top eateries set aside tables for celebrities and A-list clientele, and that's where the personal concierge comes in. Working for retainers that range anywhere from $25 an hour to six figures a year, these modern-day butlers have the inside track on chic restaurants, spa reservations, even an early tee time at the golf club. And good concierges will scour the planet for whatever their clients want — whether it's holy water blessed personally by the Pope, rare Mexican tequila or artisanal sausages found only in northern Spain. "For some people, the cost doesn't matter," says Yamileth Delgado, who runs Marquise Concierge and who once found those sausages for a client — 40 pounds of chorizo that went for $1,000.
Concierge services now extend to medical attention as well. At the high end: For roughly $2,000 to $4,000 a month, clients can get 24-hour access to a primary-care physician who makes house calls and can facilitate admission to a hospital "without long waits in the emergency room," as one New York City service puts it.
5. "You don't get rich by being nice."
John D. Rockefeller threatened rivals with bankruptcy if they didn't sell out to his company, Standard Oil. Bill Gates was ruthless in building Microsoft into the world's largest software firm (remember Netscape?). Indeed, many millionaires privately admit they're "bastards in business," says Prince. "They aren't nice guys." Of course, the wealthy don't exactly look in the mirror and see Gordon Gekko either. Most millionaires share the values of their moderate-income parents, says Lewis Schiff, a private wealth consultant and Prince's coauthor: "Spending time with family really matters to them." Just 12 percent say that what they want most to be remembered for is their legacy in business, according to the AmEx/Harrison study.
Millionaires are also seemingly undaunted by failure. Crane, for example, now runs a successful company that screens tenants for landlords. But his first business venture, a real estate partnership, went bankrupt, costing him $20,000 — more than his house was worth at the time. "It was the most depressing time in my life, but it was the best lesson I ever learned," he says.
6. "Taxes are for little people."
Most millionaires do pay taxes. In fact, the top 1 percent of earners paid nearly 40 percent of federal income taxes in 2005 — a whopping $368 billion — according to the Internal Revenue Service. That said, the wealthy tend to derive a higher portion of their income from dividends and capital gains, which are taxed at lower rates than wages (15 percent for long-term capital gains versus 25 percent for middle-class wages). Also, high-income earners pay Social Security tax only on their first $97,500 of income.
But the big savings come from owning a business and deducting everything related to it. Landlords can also depreciate their commercial properties and expenses like mortgage interest. And that's without doing any creative accounting. Then there are the tax shelters, trusts and other mechanisms the superrich use to shield their wealth. An estimated 2 million Americans have unreported accounts offshore, and income from foreign tax shelters costs the U.S. $20 billion to $40 billion a year, according to the IRS. Indeed, "an increasing number of people want to establish an offshore fund," says Vernon Jacobs, a certified public accountant in Kansas who specializes in legal foreign accounts.
7. "I was a B student."
Mom was right when she said good grades were the key to success — just not necessarily a big bank account. According to the book "The Millionaire Mind," the median college grade point average for millionaires is 2.9, and the average SAT score is 1190 — hardly Harvard material. In fact, 59 percent of millionaires attended a state college or university, according to AmEx/Harrison.
When asked to list the keys to their success, millionaires rank hard work first, followed by education, determination and "treating others with respect." They also say that what they absorbed in class was less important than learning how to study and stay disciplined, says Jim Taylor, vice chairman of the Harrison Group. Granted, 48 percent of millionaires hold an advanced degree, and elite colleges do open doors to careers on Wall Street and in Silicon Valley (not to mention social connections that grease the wheels). But for every Ph.D. millionaire, there are many more who squeaked through school. Kiyosaki, for one, says the only way he survived college calculus was by "sitting near" the smart kids in class — "we cheated like crazy," he says.
8. "Like my Ferrari? It's a rental."
Why spend $3,000 on a Versace bag that'll be out of style as soon as next season when you can rent it for $175 a month? For that matter, why blow $250,000 on a Ferrari when for $25,000 it can be yours for a few weekends a year? Clubs that offer "fractional ownership" of jets have been popular for some time, and now the concept has extended to other high-end luxuries like exotic cars and fine art. How hot is the trend? More than 50 percent of millionaires say they plan to rent luxury goods within the next 12 months, according to a survey by Prince & Associates. Handbags topped the list, followed by cars, jewelry, watches and art. Online companies like Bag Borrow or Steal, for example, cater to customers who always want new designer accessories and jewelry, for prices starting at $15 a week.
For Suzanne Garner, a millionaire software engineer in Santa Clara, Calif., owning a $100,000 car didn't make financial sense (she drives a Mazda Miata). Instead, Garner pays up to $30,000 in annual membership fees to Club Sportiva, a fractional-ownership car club in San Francisco that lets her take out Ferraris, Lamborghinis and other exotic vehicles on weekends. "I'm all about the car," she says. And so are other people, it seems. While stopped at a light in a Ferrari recently, Garner received a marriage proposal from a guy in a pickup truck. (She declined the offer.)
9. "Turns out money can buy happiness."
It may not be comforting to folks who aren't minting cash, but the rich really are different. "There's no group in America that's happier than the wealthy," says Taylor, of the Harrison Group. Roughly 70 percent of millionaires say that money"created" more happiness for them,he notes. Higher income also correlates with higher ratings in life satisfaction, according to a new study by economists at the Wharton School of Business. But it's not necessarily the Bentley or Manolo Blahniks that lead to bliss. "It's the freedom that money buys," says Betsey Stevenson, coauthor of the Wharton study.
Concomitantly, rates of depression are lower among the wealthy, according to the Wharton study, and the rich tend to have better health than the rest of the population, says James Smith, senior labor economist at the Rand Corporation. (In fact, health and happiness are as closely correlated as wealth and happiness, Smith says.) The wealthy even seem to smile and laugh more often, according to the Wharton study, to say nothing of getting treated with more respect and eating better food. "People experience their day very differently when they have a lot of money," Stevenson says.
10. "You worry about the Joneses — I worry about keeping up with the Trumps."
Wealth may go a long way toward creating happiness, but the middle-class rich still can't afford the life of the billionaire next door — the guy who writes charity checks for $100,000 and retreats to his own private island. "What makes people happy isn't how much they're making," says Glenn Firebaugh, a sociologist at Pennsylvania State University. "It's how much they're making relative to their peers."
Indeed, for all their riches, some 40 percent of millionaires fear that their standard of living will decline in retirement and that their money will run out before they die, according to Fidelity. Of course, it may not help if their lifestyle is so lavish that they're barely squeaking by on $400,000 a year. "You can always be happier with more money," says Stevenson. "There's no satiation point." But that's the trouble with keeping up with the Trumps. "Millionaires are always looking up," says Schiff, "and think it's better up there."
Source: Smart Money
Wednesday, August 6, 2008
Sorting Out Caffeine's Risks and Benefits
When Howard D. Schultz in 1985 founded the company that would become the wildly successful Starbucks chain, no financial adviser had to tell him that coffee was America’s leading beverage and caffeine its most widely used drug. The millions of customers who flock to Starbucks to order a double espresso, latte or coffee grande attest daily to his assessment of American passions.
Although the company might have overestimated consumer willingness to spend up to $4 for a cup of coffee — it recently announced that it would close hundreds of underperforming stores — scores of imitators that now sell coffee, tea and other products laced with caffeine reflect a society determined to run hard on as little sleep as possible.
But as with any product used to excess, consumers often wonder about the health consequences. And researchers readily oblige. Hardly a month goes by without a report that hails coffee, tea or caffeine as healthful or damns them as potential killers.
Can all these often contradictory reports be right? Yes. Coffee and tea, after all, are complex mixtures of chemicals, several of which may independently affect health.
Caffeine Myths
Through the years, the public has been buffeted by much misguided information about caffeine and its most common source, coffee. In March the Center for Science in the Public Interest published a comprehensive appraisal of scientific reports in its Nutrition Action Healthletter. Its findings and those of other research reports follow.
Hydration. It was long thought that caffeinated beverages were diuretics, but studies reviewed last year found that people who consumed drinks with up to 550 milligrams of caffeine produced no more urine than when drinking fluids free of caffeine. Above 575 milligrams, the drug was a diuretic.
So even a Starbucks grande, with 330 milligrams of caffeine, will not send you to a bathroom any sooner than if you drank 16 ounces of pure water. Drinks containing usual doses of caffeine are hydrating and, like water, contribute to the body’s daily water needs.
Heart disease. Heart patients, especially those with high blood pressure, are often told to avoid caffeine, a known stimulant. But an analysis of 10 studies of more than 400,000 people found no increase in heart disease among daily coffee drinkers, whether their coffee came with caffeine or not.
“Contrary to common belief,” concluded cardiologists at the University of California, San Francisco, there is “little evidence that coffee and/or caffeine in typical dosages increases the risk” of heart attack, sudden death or abnormal heart rhythms.
In fact, among 27,000 women followed for 15 years in the Iowa Women’s Health Study, those who drank one to three cups a day reduced their risk of cardiovascular disease by 24 percent, although this benefit diminished as the quantity of coffee rose.
Hypertension. Caffeine induces a small, temporary rise in blood pressure. But in a study of 155,000 nurses, women who drank coffee with or without caffeine for a decade were no more likely to develop hypertension than noncoffee drinkers. However, a higher risk of hypertension was found from drinking colas. A Johns Hopkins study that followed more than 1,000 men for 33 years found that coffee drinking played little overall role in the development of hypertension.
Cancer. Panic swept this coffee-dependent nation in 1981 when a Harvard study tied the drink to a higher risk of pancreatic cancer. Coffee consumption temporarily plummeted, and the researchers later concluded that perhaps smoking, not coffee, was the culprit.
In an international review of 66 studies last year, scientists found coffee drinking had little if any effect on the risk of developing pancreatic or kidney cancer. In fact, another review suggested that compared with people who do not drink coffee, those who do have half the risk of developing liver cancer.
And a study of 59,000 women in Sweden found no connection between coffee, tea or caffeine consumption and breast cancer.
Bone loss. Though some observational studies have linked caffeinated beverages to bone loss and fractures, human physiological studies have found only a slight reduction in calcium absorption and no effect on calcium excretion, suggesting the observations may reflect a diminished intake of milk-based beverages among coffee and tea drinkers.
Dr. Robert Heaney of Creighton University says that caffeine’s negative effect on calcium can be offset by as little as one or two tablespoons of milk. He advised that coffee and tea drinkers who consume the currently recommended amount of calcium need not worry about caffeine’s effect on their bones.
Weight loss. Here’s a bummer. Although caffeine speeds up metabolism, with 100 milligrams burning an extra 75 to 100 calories a day, no long-term benefit to weight control has been demonstrated. In fact, in a study of more than 58,000 health professionals followed for 12 years, both men and women who increased their caffeine consumption gained more weight than those who didn’t.
Health Benefits
Probably the most important effects of caffeine are its ability to enhance mood and mental and physical performance. At consumption levels up to 200 milligrams (the amount in about 16 ounces of ordinary brewed coffee), consumers report an improved sense of well-being, happiness, energy, alertness and sociability, Roland Griffiths of the Johns Hopkins School of Medicine reported, although higher amounts sometimes cause anxiety and stomach upset.
Millions of sleep-deprived Americans depend on caffeine to help them make it through their day and drive safely. The drug improves alertness and reaction time. In the sleep-deprived, it improves memory and the ability to perform complex tasks.
For the active, caffeine enhances endurance in aerobic activities and performance in anaerobic ones, perhaps because it blunts the perception of pain and aids the ability to burn fat for fuel instead of its carbohydrates.
Recent disease-related findings can only add to coffee’s popularity. A review of 13 studies found that people who drank caffeinated coffee, but not decaf, had a 30 percent lower risk of Parkinson’s disease.
Another review found that compared with noncoffee drinkers, people who drank four to six cups of coffee a day, with or without caffeine, had a 28 percent lower risk of Type 2 diabetes. This benefit probably comes from coffee’s antioxidants and chlorogenic acid.
Although the company might have overestimated consumer willingness to spend up to $4 for a cup of coffee — it recently announced that it would close hundreds of underperforming stores — scores of imitators that now sell coffee, tea and other products laced with caffeine reflect a society determined to run hard on as little sleep as possible.
But as with any product used to excess, consumers often wonder about the health consequences. And researchers readily oblige. Hardly a month goes by without a report that hails coffee, tea or caffeine as healthful or damns them as potential killers.
Can all these often contradictory reports be right? Yes. Coffee and tea, after all, are complex mixtures of chemicals, several of which may independently affect health.
Caffeine Myths
Through the years, the public has been buffeted by much misguided information about caffeine and its most common source, coffee. In March the Center for Science in the Public Interest published a comprehensive appraisal of scientific reports in its Nutrition Action Healthletter. Its findings and those of other research reports follow.
Hydration. It was long thought that caffeinated beverages were diuretics, but studies reviewed last year found that people who consumed drinks with up to 550 milligrams of caffeine produced no more urine than when drinking fluids free of caffeine. Above 575 milligrams, the drug was a diuretic.
So even a Starbucks grande, with 330 milligrams of caffeine, will not send you to a bathroom any sooner than if you drank 16 ounces of pure water. Drinks containing usual doses of caffeine are hydrating and, like water, contribute to the body’s daily water needs.
Heart disease. Heart patients, especially those with high blood pressure, are often told to avoid caffeine, a known stimulant. But an analysis of 10 studies of more than 400,000 people found no increase in heart disease among daily coffee drinkers, whether their coffee came with caffeine or not.
“Contrary to common belief,” concluded cardiologists at the University of California, San Francisco, there is “little evidence that coffee and/or caffeine in typical dosages increases the risk” of heart attack, sudden death or abnormal heart rhythms.
In fact, among 27,000 women followed for 15 years in the Iowa Women’s Health Study, those who drank one to three cups a day reduced their risk of cardiovascular disease by 24 percent, although this benefit diminished as the quantity of coffee rose.Hypertension. Caffeine induces a small, temporary rise in blood pressure. But in a study of 155,000 nurses, women who drank coffee with or without caffeine for a decade were no more likely to develop hypertension than noncoffee drinkers. However, a higher risk of hypertension was found from drinking colas. A Johns Hopkins study that followed more than 1,000 men for 33 years found that coffee drinking played little overall role in the development of hypertension.
Cancer. Panic swept this coffee-dependent nation in 1981 when a Harvard study tied the drink to a higher risk of pancreatic cancer. Coffee consumption temporarily plummeted, and the researchers later concluded that perhaps smoking, not coffee, was the culprit.
In an international review of 66 studies last year, scientists found coffee drinking had little if any effect on the risk of developing pancreatic or kidney cancer. In fact, another review suggested that compared with people who do not drink coffee, those who do have half the risk of developing liver cancer.
And a study of 59,000 women in Sweden found no connection between coffee, tea or caffeine consumption and breast cancer.
Bone loss. Though some observational studies have linked caffeinated beverages to bone loss and fractures, human physiological studies have found only a slight reduction in calcium absorption and no effect on calcium excretion, suggesting the observations may reflect a diminished intake of milk-based beverages among coffee and tea drinkers.
Dr. Robert Heaney of Creighton University says that caffeine’s negative effect on calcium can be offset by as little as one or two tablespoons of milk. He advised that coffee and tea drinkers who consume the currently recommended amount of calcium need not worry about caffeine’s effect on their bones.
Weight loss. Here’s a bummer. Although caffeine speeds up metabolism, with 100 milligrams burning an extra 75 to 100 calories a day, no long-term benefit to weight control has been demonstrated. In fact, in a study of more than 58,000 health professionals followed for 12 years, both men and women who increased their caffeine consumption gained more weight than those who didn’t.
Health Benefits
Probably the most important effects of caffeine are its ability to enhance mood and mental and physical performance. At consumption levels up to 200 milligrams (the amount in about 16 ounces of ordinary brewed coffee), consumers report an improved sense of well-being, happiness, energy, alertness and sociability, Roland Griffiths of the Johns Hopkins School of Medicine reported, although higher amounts sometimes cause anxiety and stomach upset.
Millions of sleep-deprived Americans depend on caffeine to help them make it through their day and drive safely. The drug improves alertness and reaction time. In the sleep-deprived, it improves memory and the ability to perform complex tasks.
For the active, caffeine enhances endurance in aerobic activities and performance in anaerobic ones, perhaps because it blunts the perception of pain and aids the ability to burn fat for fuel instead of its carbohydrates.
Recent disease-related findings can only add to coffee’s popularity. A review of 13 studies found that people who drank caffeinated coffee, but not decaf, had a 30 percent lower risk of Parkinson’s disease.
Another review found that compared with noncoffee drinkers, people who drank four to six cups of coffee a day, with or without caffeine, had a 28 percent lower risk of Type 2 diabetes. This benefit probably comes from coffee’s antioxidants and chlorogenic acid.
Source: Yahoo
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