For the last two post, we have been talking and sharing lot about Millionaires and their mindset. Particualy in the previous post, I listed few questions which was asked by my friends and even asked myself many times. So I wanted to dwelve into those questions and crack some myths and misconceptions about Millionaires from research/study.

Let's start with something simple.

#1. I have to become a millionaire/rich person to live happily.

That is not true but many think that way. If you ask me, that's a misconception by many people. It became ingrained in many people minds after looking at rich people,  that they can live happily once they become a millionaire/billionaire or rich person. 

One person's success in life shouldn't be all about money and how much he/she makes. It is just a part of the puzzle. It is mostly about how you live with what you make and how you help others to get what they want.Studies have for years shown that cash has only a small effect on our well being.  One can still  lead a miserable even after getting a windfall of money and there are many examples to prove that case.

#2. Millionaires are lavish spenders.

That's totally wrong. If you take Mr.Warren Buffet, he is one among the richest people in the world but he still lives in his old house. He drives his own car which is pretty old too. There are many other rich who lead a conservative and frugal life. Many new millionaires are true frugalers and made to the list by saving and conscious spending. Not everyone makes to millionaire list by winning a lottery. You should check out the book, frugal millionaires(http://www.thefrugalmillionaires.com) and you will understand how millionaires think differently than normal person.

#3. I will be financially free when I  become a Millionaire.

Don't count on it not in this current economic situation and expected high inflated one in the future. These days, simply being a (one) millionaire is not enough to be financially free, depending on ones age. Financial freedom is totally independent of being rich person. Not all rich people call themselves financially free. Here is an interesting reportfrom study conducted by Universty of Belgium, UK and  Canada about Wealth and well being. Actually money makes you financially dependent. When you have more money, you become more dependent on it for everything and anything.


#4. Only men are up against Million dollar goal.

According to a report, nearly half of all millionaires are all women. There is no big difference among Men or women when it comes to making millions. Here is the listof women billionaires all over the world.


#5. You need to have Millionaire Mindset to be a Millionaire.

Not entirely true but it helps to reach the goal quicker. You can ask, What is millionaire mindset? It is explained in detail in the best selling book wrote by famous network marketer Bob Protector. He shows how an ordinary person can create his/her own economy by using their mind and thought process. You can read more at free ebook copy.  I also found this ezinearticleto be more precise and short. To be short, it is about fine tuning your act and mind to decide your own the destiny and move towards as the only goal. I don't truely follow up them since I believe in my simple 3P strategy, Plan, Persist and Perseverance.  


#6. I really need a Millionaire goal to be successful.

Not actually. It depends on each individual. Every individual is different in their own approach but many analyst recommend having a higher goal can lead to higher success rate. As I said earlier, success in life is different for each individual and it doesn't have to measured in dollars.  Sometimes it is fun to track numbers and dollars to see the progress. But most of the time, it is about pride to say that you are one among list of High networth individual in this world.

Also tracking Many experts from their real life example, "What gets tracked, gets improved?" If you don't track your progress, you won't know where you were and where are you now. Tracking the progress is an important part for financial advancement.


#7. Everyone can't become a Millionaire.

Why not? If school drop outs like Bill gates, David Mudrock(Dole foods CEO) can do it, you can too.  You don't need an MBA or doctor to be a Millionaire. Here is the list of all drop out millionaires,  and here is one from forbes 2010 list of top ten drop outs.

If this makes you feel better and get you working on your Million dollar goal, go for it.

I have unrevealed some myths about millionaires, now you might ask how can easily become a millionaire?

It is actually a million dollar question and nobody has silver bullet answer for this question. If I had known the exact answer, I would have been a millionaire by now. Obviously, you cannot be a millionaire overnight unless two things happens, winning lottery or waking up with million dollar idea. There are "n" number of ways to become a high networth individual(over 1million).

A very conservative approach many banks suggest is to save a particular dollar amount from your early age like 21 every month and you can be a millionaire when you are 60 years old. It is also not set in stone because it depends on factors like saving rate and economical condition. But there are other ways like starting a new business, inventing some new product, work on multiple investment strategies etc., 

Just hook on to a strategy which works for you according to your comfort level and keep at it. Don't give up, just keep trying...


Image source: westLoh.com

In the last blog post, we saw the essence of true giving and free tools available to find an organizations that suits your lifestyle or passion to start thinking about donating. This post, we are going to see few different ways one can give and help. Also we will look at some Tax Implications of gift giving.

There are variety of ways to contribute, donate or give. A donation doesn't have to be big and it doesn't have to be money either. It is giving heart that matters. Let's categorize charitable gift giving into two ways as Direct and Indirect.

I. Direct Donations

Cash is king whether it comes to businesses or non-profit organizations. At this tough economic juncture, it is not just the individuals and corporations which are feeling the pinch. Many non-profit organization are experiencing big hit in their donation dollars. This year Good will, Salvation Army and many other organizations has reported a decline in their donation. They need our help more than ever in this tough times. Giving Cash is a great way to show your support and it has a direct impact to the cause. Many organization now accept credit cards for donation.  But there are certain limitation to cash gifts in regard to Taxes. We will look at them later below.


II. Indirect Giving

1. Give by Gift Cards

You can buy charity gift cards at sites like http://www.tisbest.org/, www.charitygiftcertificates.org and www.JustGive.org. and give to the reciepent. He/she can spend or use the gift card and donating to their favorite society. It is a great feeling for both you. You give him the gift, he/she gifts to the favorite charity. Also there are lot of webistes which accepts unused store giftcards and donate the proceedings to charities. If you have a macy's gift card which has balance of $2 or something. Many of us just threw it away because we won't be able to buy anything using the small money left over. Instead, you can just give it away to charities by using these websites.

2. Don't donate but Lend or Loan

I don't believe in just giving  away money unless it is tipping somebody. Because the recepient will be back again to street asking more. It is better to help them find a job and make them work feed themselves. Like the chinese saying, "Don't give them fish, instead teach them how to fish".  There are few organizations like Kiva.org and UnitedProsperity.org which provides the platform to do just that. They help the donor to lend/loan money directly to aspiring Entrepreneurs in the developing countries. I started myself few months ago in both these websites and started lending and helping people.

3. Shop and Donate

It is called Cause related Marketing and are Selfish giving. Starbucks is helping to fight AIDS in Africa. Macy's is giving to the Make A Wish Foundation. And Toys "R" Us is giving to Toys For Tots Many more retailers and manufacturers are partnering today with not-for-profit organizations in cause-related marketing campaigns. On one hand, these campaigns raise awareness, support, and donations for social causes such as global hunger relief. On the other hand, they enhance corporate reputations, customer loyalty, and financial gains for companies.

An example of cause-related marketing is an effort organized by Macy's, Pfizer, and other businesses on behalf of the American Heart Association. The program has raised over $32 million in donations for the charity, while generating over 1 billion media impressions for corporate sponsors. So just buy shopping in these stores, you are indirectly benefiting some non-profit organizations. Whether you call this has selfish giving or not, it is at least benefiting somebody thats what matters. There was an article/report posted in npr about this cause related marketing. Check it out.

III. Volunteer your time

Time is precious and it has value. If you strapped with cash, you can also give your time. There are lot of local charity organization like hospitals, resale shopes which migh need help during this holiday times. You can always take time to volunteer and even claim those hours in your Tax returs. Talking of taxes, now its time to check what are the ways we can benefit from gift giving.

Tax Advantages

Giving not only satisfy our inner soul but also helps to save and get some money in return as an appreciation from Uncle Sam. Tax incentives is an added bonus encouraging many to contribute.

For charitable contributions of less than $250, you must keep a canceled check, credit card receipt or electronic funds transfer receipt. Or you must have a letter from the charity acknowledging receipt of the contribution and stating its date and amount. For charitable contributions of $250 or more, you'll also need a written receipt from the charity substantiating the amount of cash contributed and a description (but not the value) of any property -- other than cash -- contributed.

And you must disclose whether the organization provided any goods or services (such as a theater ticket or dinner) in return for the contribution.
If you donate property, such as clothing, valued at less than $250, you must keep a receipt from the charitable organization showing the charity's name, contribution date, physical location of the contribution and a detailed description of the property (but not its value).

For larger donations, you'll need even more documentation, including a description of how you acquired the property (purchase, gift, inheritance), the date you acquired the property and the original cost of that property. Donated property worth more than $5,000 requires a qualified appraisal, as do lesser-value objects that aren't in "good" condition.

Conclusion

“Giving from a full heart is one of the most joyous things you can do...",  – from the book "The Secret".

Make this holiday season special by donating your time or money in any above ways. It will surely sooth your soul and even make your pocket happy by getting some back so you can continue giving.

Happy Holidays!!

Sources: Internet website relate to charity giving

According to Waldfogel, an economist at the Wharton School of the University of Pennsylvania,  gift giving is a Holiday waste.

He makes the case in his book, Scroogenomics: Why You Shouldn't Buy Presents for the Holidays.  He says, when you buy something for yourself, you will only spend, say, $50, if you look it over and decide it's worth at least $50 to me. When someone else sets out to spend $50 on me, they're at a real disadvantage. They don't know what I like unless they are real close to you. They don't know what I have. There's just no guarantee that what they buy will be worth at least $50 — or more — to me. So it real waste of money. And what the data show is that, on average, stuff that other people buy as gifts is worth 20 percent less per dollar than the stuff we buy for ourselves. And so, in that way, when we go out and spend money on gifts, we're destroying a lot of value.

It's not so much that people shouldn't give gifts, period. It's that you should give gifts when you have a fair shot at doing well. And so those are the people you know well and, frankly, the people you care about. He recommends, it's often better (more efficient) to simply give cash or pre-paid gift cards. You can read more about this Holiday Gift waste in his book, Scroogenomics.

At the sametime, Holiday season is not just about giving gifts to friends and family, it is also about giving the gift of hope and happiness to most needed ones. Charitable giving  is a big aspect of the holiday season. Whether you make a difference in one's life or just make one smile by showering gifts in this holiday season, it will surely piles up good karma in you.

"What you think about and thank about, we bring about” – Dr. John Martini in the book, "The Secret".

An inspiring quote from an excellent book which I recently read and strongly recommend. It just reforces the fact that "Think and Do good things, it will bring good things to you". This very thought is the prime reason for many millionairs who spend millions in philanthropy. By doing so, they continue to attract more money and become more rich while many of us are worrying about living pay check to pay check. That's the difference in mind set. 

We worked hard and devoted all our attention in making money, saving money and investing money all this year for the future. It's hard to think seriously about giving money away. It is even harder for many without job in this tough and challenging year 2009.  But the good news, the year is almost over and recession has come to an end at least in papers. That's big sign of relief. We all can only hope for the next year to bring greater perspectives in both job and economic front through outall over the world.

While we wait to welcome the New year, many of us should be lucky and grateful to have a reasonable job and a decent life. Instead of cribbing about not enough money to donate or give way, we should open our heart and show our gratitude by giving and helping others in need.

How can you contribute?

Whether it is small or big, capacity doesn't matter. What matters the most is the Charitable thought. There are lot of ways you can give especially suiting your life style, you life goals, your passion and more. If you are pet lover, you can give to Humane Society to protect animals. If you want to encourage kids education, you can donate to globalgivingeducation funds. If you care about developing nations, you can give gift to world relief. With webspace loaded with gift giving advices, you better do your research to find the right option and avenue to route your money to the right place. Here is some help to do some true gift giving.

Tools - Charity Finder

It's easy to check on a charity's business practices to make sure the bulk of your contribution is going toward the cause you select, instead of being spent on fund-raising expenses or salaries. There are web sites like www.CharityNavigator.comand www.GuideStar.org allow you to search for a charity by name or cause, as well as view and compare their annual IRS filings under Form 78, which details their expenses and costs.

 
Websites like http://www.goodsearch.com/and http://www.searchkindly.org/are search engines that donate a portion of their revenue to the charities and schools designated by its user.

We will see more about different ways of gift giving and possible Tax Implications in the next blog post.

Healthy mouth, Healthy body, that's an old expression.

Healthy mouth, Healthy body and Wealthy pocket , it's the new mantra. 

A Healthy body starts with good dental hygiene. That's what drives us all to brush our teeth first thing in the morning. With that comes, fewer trips to dentist and more importantly to physicians which translates to less money spent on dental and medical expenses. Believe it or not, chewing sugarless gums comes for help to make it even easier in keeping your teeth strong and protect from cavities.

When we were kids, we were told to avoid sugar-ladened chewing gum for health concerns. Now, it is hard to see a kid without gum in their mouth. At the same time, chewing gum manufacturers came a long way attracting health consicious consumers by providing products which ensures good oral health. In this post, we will see how sugarless gum helps to save money and keep us healthy. 

What are Sugarless Chewing Gums?

Chewing gum is no longer is meant to provide a sweet treat or freshen breath. It has taken different avatar in oral health. You've seen the claims on sugarless gum wrappers. Packages of Orbit say the chewing gum helps strengthen the teeth. And a package of Trident gum containing xylitol says it helps prevent cavities. The question in our minds, Are these claims solid?

According to Martin Schlatter, Wrigley's marketing chief, it seems so. A three-year clinical study showed 8% fewer cavities, and a two-year study found a 38% drop, because chewing the gum strengthens teeth and creates saliva that reduces plaque acids.

But not all chewing gum have this magic packed inside, health advantage is totally depend on the type of gum chewed. Two types of sugar substitues are used in sugarless gums depending on the manufacturers. They are xylitol and sorbitol. They are also called sugar alcohols, referring to their chemical make-up but they don't actually contain alcohol. By adding natural sweeteners like xylitol, manufacturers added the benefit of fighting against bacteria.

How Sugarless Gum works?

Let's take Xylitol. It is a natural sweetener found in fruits such as strawberries, plums and pears. Xylitol looks and tastes like sugar. For this reason, it's used to sweeten food and candies like chewing gum,  gumdrops, mints, medicated syrups and tablets, toothpaste and mouthwashes. It' is also found in dietetic and diabetic foods. Several dental associations endorse sugar-free products that are at least 50% sweetened with xylitol.

Xylitol is an anti-microbial which acts against the bacteria itself, preventing tooth decay according to scientific research. When bacteria in your mouth combine with sugars, they produce acid. This acid damages teeth, causing cavities. Bacteria in your mouth can't break down xylitol, so no acid is produced. Also, the sweetness of xylitol encourages salivation. Saliva washes out the mouth and helps prevent cavities.

Eating large amounts of products that contain xylitol may have a laxative effect. For example, having more than 10 to 20 pieces of candy or gum per day may cause this effect. This is the only known drawback to xylitol.

It is important to note that studies suggest that sugarless gums made of another sugar substitute called sorbitol do not seem to have the same preventive effect. Sorbitol can increase saliva flow which secondarily strengthens teeth, explains another analyst. But there are no studies that directly show that sorbitol-based chewing gums can strengthen the teeth.

How does Chewing Sugarless Gum save money?

In a PR Newswire post regarding a Majestic Drug survey, we learn some interesting statistics that may not shock you, but will inform you.

One in six Americans experienced a dental emergency in the past year.

Seventy-two percent of Americans have fillings, caps, or crowns, and 23 percent of dental emergencies relate to these restorations.

The survey revealed that out of a thousand people, respondents with an annual income under $35K had a higher instance of dental emergency than those with an income exceeding $100K.

Prevention is always better than cure. Brushing one's teeth and scheduling
regular visits to the dentist are primary in preventing dental and gum disease, but chewing sugarless gum will strengthen teeth and assist in preventing cavities. That, in turn, adds to a person's savings. 

For example, an Orbit gum 12 pack with 15 strips in each pack cost = $15. It is 9 cents a strip. If you chew 5 pieces for an average 25 days, it cost just $11 a month and $132. It is far better than spending $150 - $250 for fillings, pulling teeth and more for pain relivers as well. Think about it!

What should I do?

As reported by npr.org, Milgrom, dentist at the University of Washington and his colleagues have studied how much xylitol is needed to actually knock out bacteria and prevent cavities. And he has two pieces of advice.

First: Read the ingredient list on the gum package. If xylitol is the first ingredient, then there's probably enough of it to be effective. (below list Sorbitol is the first ingredient and not really sugarless gum)



And second: Chew a lot of it.  "You have to chew at least two pieces, three times a day to have an effect," says Milgrom.

This may sound like an inordinate amount of chewing, but in Finland kids have really gotten used to it. The Finns have been chewing xylitol gum for years as part of a public health initiative to reduce cavities. And Finnish researchers have documented a preventive effect in numerous studies going back to the early 1970s at the University of Turku.

Throughout Scandinavia, xylitol products are widely available, from lozenges and toothpastes to chocolate and candy gummy bears, says Ramos-Gomez, a pediatric dentist at U.C.LA.

Sugarless chewing gums are not only good for you but also good for your pocket. And of course, dental professionals have one more recommendation. Watch your diet. Make certain your toothpaste includes a fluoride ingredient.

Source: Last month(Sep) was dental month and npr(http://www.npr.org/templates/story/story.php?storyId=106347234 ) aired an interesting story on chewing sugarless gum  triggering me write this blog after good amount of research. Thanks to NPR.ORG.