Rich make money work for them..

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Rich don’t work for money – they make money work for them. What is the difference between making money work for you and working for money? In first case where individual makes money work for him or her, he or she becomes master of money.

In second case where individual works for money, she or he becomes slave of money and money becomes his or her master. Well known fact is that money is a very good slave but extremely poor master.

How can one make money his or her slave? Simple, by regularly saving and investing. Whenever you earn, first pay yourself. Invest at least 10 per cent of your gross income. Over a period of time your investments will grow and start generating returns.

Soon you will reach a stage where return from investments are enough to take care of routine expenses. Moment you reach that stage you are on fast track. Your investment will generate return to take care of your life style and your fresh new earnings will increase your investment corpus.

Now you are not working for money. Your investments are working for you. Money is your slave and you are its master. Remember one golden rule in life, earn-save-spend. People who follow this will eventually make money their slave.

There are other set of people. They first earn than spend and lastly save. They will always remain slave of money. When they earn more they spend more. If they do not earn more they probably will borrow.

People who cannot control expenses and save become slave of money. They will have to keep working for money whole of their life.

In first instance people are working for themselves. Whatever they earn they save for themselves. From their savings they further generate returns for themselves. Second set of people work for others. When they spend on goods and services, shopkeepers and service providers earn profit, so they are working for them.

If they borrow money, they pay interest. Interest paid by these people is income for someone else and hence they are earning for the lenders. These people even end up paying higher tax. This is because all governments give tax benefits to savers, no government gives tax benefit to spenders.

Being spenders first they work for paying taxes. After paying everyone, if there is any surplus left they are able to save or should we say spend?

Another important thing rich do is to create assets. Others create liabilities. Definition of asset is different for financial planning perspective. Any cash outflow which has potential to generate returns either immediately or in distant future is an asset. Rich invest in income generating assets.

On the other hand majority of people create liability. If any of your outflows are likely going to result in spending either now or in further future it is liability. For example when one invests in fixed deposit she or he will generate income by way of interest and hence it is an asset. On the other hand if one buys car, she or he is likely to further incur expenses by way of fuel, maintenance etc and hence from financial planning perspective car is a liability.

Often people struggle even after earning more or getting pay hikes is because they would have created lots of liabilities. They would continue working for all those liabilities.

An investment is like sowing a seed. Initially you need to water it but soon it starts fending for itself and grow. The rich sow seeds of assets and later make the assets work for them. The others sow the seeds of liabilities and work for them.

kick that soda poppin’ habit!

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Excessive consumption of the ‘fizzy lifting’ drink can cause a host of health problems. Nutritionist Joy Bauer explains why you should cut back.

In 2004, Americans spent approximately $66 billion on carbonated drinks alone. If you’re one of the millions who can’t start their day without a sip of soda but want to stop, help is here. Nutritionist Joy Bauer was invited on the “Today” show to offer some helpful advice to help reduce the carbonated drink habit.

Do you find yourself reaching for soda at every meal? 
Imagine this: One 20-ounce bottle of soda is the equivalent of pouring 17 teaspoons of straight sugar into your body! What’s more, those 250 empty calories can set you up for mood swings, energy dips and weight gain.

What else can excessive soda and sugar do to your body?
Tooth decay  
The sugar and acid combination causes the degradation of tooth enamel and increases the risk for decay. Soda contents include high fructose corn syrup (that is, sugar), additive dyes, carbonic or phosphoric acid, and sometimes caffeine. The carbonic or phosphoric acid dissolves the calcium out of the enamel, leaving a softened matrix that allows bacteria to enter the teeth and cause destruction. The sugar is an added insult — it’s converted to acid by the bacteria on the teeth, making the combination of acid and sugar especially destructive.

Diet soda also contains acid. So if you’re sipping a sugar-free soda while eating a carbohydrate-rich snack or meal, your teeth are at equal risk.

Bone weakening
Some health experts believe that soda leaches calcium from the bones in an attempt to buffer the body’s acidity level from the phosphoric acid intake. But there’s no solid evidence to prove this theory. In fact, many everyday foods contain more phosphorous than soda.

However, studies have shown that adolescent girls who regularly drink soda DO have lower bone densities (and higher incidence of fractures) than non-soda drinkers. These findings are most likely because excessive soft drink intake displaces milk and other calcium-rich beverage contributing to an overall calcium deficiency.

Excessive carbonation can cause gas and stomach irritation in people who have Irritable Bowel Syndrome.

Increased risk of diabetes
We know that the excessive sugar and calories in soda can cause weight gain – which in turn will increase your risk for type 2 diabetes. But according to a recent Harvard observational study there may be even more to the story.

Women in the study who drank at least one sugar-sweetened soda a day were 85 percent more likely to develop type 2 diabetes than those who drank less, said Matthias B. Schulze, who presented the Harvard School of Public Health research at the American Diabetes Association’s 64th scientific sessions. In addition to the sodas’ excess calories, their large amount of rapidly absorbable sugars could contribute to obesity and a greater risk of diabetes, said Schulze, a post doctorate student from Germany. "It’s not that sugar everywhere is important, but it seems that sugar specifically in liquid foods may be relevant," Schulze said. "So, sodas and other energy-providing drinks may lead to an over-consumption of energy that would lead to obesity and weight gain."

Another study published in The Journal of Clinical Endocrinology & Metabolism in 2004 looked at the metabolic effect of high fructose corn syrup. Their results revealed that after consuming meals rich in high fructose corn syrup, subjects showed decreased levels of leptin – one of our key appetite regulating hormones. Thus, suggesting that beverages concentrated in high fructose corn syrup do not fill you up and place you at a higher risk for weight gain.

Some things to think about
For the same 250 calories in a 20-ounce bottle of soda, you could enjoy eating nutritious foods that fill you up and can increase your energy. Here are some substitutes:

  • 80 baby carrots
  • Four large Red Delicious apples
  • 15 cups of air popped popcorn

New Years Resolution for 2006
Give up one daily 20-ounce soda, and at the end of the year you’ll save:

  • 91,000 calories
  • 7,280 teaspoons of sugar
  • Potentially lose up to 26 pounds of fat

Give up three daily 20-ounce bottles of soda, and at the end of the year you’ll save:

  • 273,000 calories
  • 21,840 teaspoons of sugar
  • Potentially lose up to 78 pounds of fat

By replacing soda with a nutritious beverage, you’ll feel more energetic, satiated, lighter on your feet, less bloated and less moody. The perfect health gift for 2006!

Better beverage alternatives that are low-calorie and enhance your health:

  • Water
  • Flavored water
  • Plain and flavored seltzer
  • Skim milk, skim plus and 1 percent reduced fat milk
  • Soy milk
  • Green tea
  • Chamomile tea
  • Coffee
  • Skim latte, skim cappuccino and skim café au lait
  • Low-fat hot cocoa

To learn more about Joy Bauer and healthier eating habits, visit