Archive for the ‘General’ Category

Saving – It’s a habit, not a hobby

Personal savings rate is a key measurement of the amount of resources American household have available to contribute to the national saving.  A low personal saving rate limits how much the nation can invest and so ultimately limits future economic growth.


Bit of History


From 1960 until 1990, households socked away an average of about 9 percent of their after-tax income, government figures show. Americans got out of the habit in the 1990s as they saw their wealth build up in other ways, first through surging stock prices and then soaring home values.




The annual personal saving rate (effectively, income minus spending) averaged around 10% during the early 1980s, when the economy was in a severe double-dip recession. It then began to fall steadily, even as the economy weathered two more recessions, averaging about 7% around the time of the 1990-91 recession, then falling below 2% for the first time in 2001. It averaged about 0.6% from 2004-07. Americans also spent more than they earned in recent years which is another reason for pushing the personal saving rate below zero. Check out the link for a detailed clear picture.


Current Mindset

A change in money mindset has emerged again from this recession. That has resulted in a rise in the personal saving rate, which the government calculates as the difference between earnings and expenditures. Economists now expect the rate to rebound to 3% to 5%, or even higher, in 2009, among the sharpest reversals since World War II. Goldman Sachs last week predicted the 2009 saving rate could be as high as 6% to 10%. (Wallstreet Journal article – See “Hard-Hit Families Finally Start Saving, Aggravating Nation’s Economic Woes”.)


Many banks and financial institutions are sending out flyers and phamplets encouraging customers to save money. Actually they need deposits to increase their reserver which is different story. Money gurus recommend various methods and techniques which are hard to follow strategies. It doesn’t always fit all types of people and lifestyle. We need a simple, realistic, and ideal plan to reach the saving goal, whether it is short to long term.
 
Whether you are looking to save money for your first Ipod or little bit more for your first car or  bigger target to buy your first home. Just three simple steps to follow to create a good saving plan. Before that, you better set your mind set by realizing the truth.  “Saving is a habit and not a hobby.” It is hard to start saving and never easily comes off the cuff.  Many of you do not like to hear it, but that’s the fat.
 
How to Realize your goal?
 
Many of our habits are product of constant practice whether its from child hood or teens. If you don’t have that saving habit built in you, it is going to be take time start one so you better show some patience. Making something habitual needs determination and constant practice. 


I like to mention a quote by Frank Outlaw.


“Watch your thoughts; they become words.
Watch your words; they become actions.
Watch your actions; they become habits.
Watch your habits; they become character.
Watch your character; it becomes your destiny.”


You need to first cultivate thoughts about Savings. Keep thinking about saving money in different ways whether from your paycheck or reducing electricity bill or credit card bill. You just keep thinking about saving something every day or month. Next, talk to your spouse and friends about money saving ideas and plans. Finally, take action by following your own idea or any of three ways mentioned below.


1. Don’t spend your dimes and quarters. Start putting them in a piggy bank or digital money jar. Digital money jar will give your amount. Every month, take the change to nearby bank and deposit it in you savings account. You can Open a savings account either with Nationalized bank or local banks with just minimum deposit of $1. I would recommend Credit unions for small saving accounts. 
 
2. On every ATM withdrawal, take $10 out and put it away in the secret wallet/purse compartment. Don’t ever touch it whatever happens. At the end of the month, take it all out and deposit in your savings account. 


3. This one is the easiest of all, called Blind savings – Set up automatic withdrawal to put away a small amount from your paycheck as Payroll deduction or Auto deduction from your checking account to your CD or Savings account. You will never see this money and it is blindly saved.


Once you start taking action and sticking with it rain or shine. Everything will fall into picture automatically, transforming yourself. Your savings habit gets built into you slowly. Once you get into the habit, it just comes as a second nature. 

So do not procrastinate and think it is impossible. You already took your first step thinking about saving, you just need make an habit. Sart working towards your next step by talking, planning and taking action. Try it out and share your thoughts.
 

Chew Sugarless Gum & Save money

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.

ING DIRECT Homeownership Survey

I was contacted by ING DIRECT Corporate relation office and requested to share this informative public survey results. It is an eye opener bringing facts about Home ownership from real people.

Americans blamed low, no money down mortgages for economic downfall.

Wilmington, DE – Despite the mortgage crisis, two-thirds (67 percent) of Americans agree that homeownership is still an “aspirational” symbol of the American Dream, according to a recent ING DIRECT survey. But as lower housing prices are prompting Americans to revisit the housing market, the new survey also shows a lesson learned from the mortgage meltdown: save for a down payment.


More than four in 10 (42 percent) Americans think homes purchased with a bigger down payment in recent years could have reduced the number of foreclosures and prevented some of the current economic downturn, according to the survey.  With a larger down payment, Americans can move into their new homes with a lower interest rate, reduced debt and owe less interest over time.  In recent years, too many no-money-down mortgages were offered to homebuyers who could not afford to keep paying their mortgages after their homes lost significant value and the economy slowed.


“Owning a home is an opportunity, not an entitlement,” said Arkadi Kuhlmann, President of ING DIRECT USA.  “Sadly, that message has been lost in translation over the past several years.  Don’t trade your future for the instant gratification of owning a home you can’t afford in the long run.  It you want to own a home, save for it, and our survey shows that Americans agree. ” 


With low mortgage rates, more than 40 percent of American homeowners with a mortgage may refinance this year, according to the survey. Homeowners surveyed also indicated that they are seeking new options from the 30-year mortgage product.  Nearly four in 10 (37 percent) Americans said they are likely to consider a mortgage that allows borrowers to make bi-weekly mortgage payments at no charge.  Making payments every two weeks instead of once a month allows homeowners to pay off their mortgage faster.  


“For a saver, there is nothing more rewarding than finally becoming mortgage-free,” said Kuhlmann.  “Americans want home loans that eliminate years of payments and give them the freedom to own their homes sooner.”  
 
The national online survey was conducted within the United States by Harris Interactive on behalf of ING DIRECT between May 20-22, 2009 among 2,122 adults age 18+, 1,514 of whom were homeowners. No estimates of theoretical sampling error can be calculated; a full methodology is available.


Please share your thoughts and views about this topic. If you want to automatically notified about new articles, please subscribe for the updates by providing your email address.