Free Money Finance

What Makes People Happy, Part 3: Pets

Here's a happiness shopping list from CNN Money -- a set of items that people say make their lives happier (something money can only do to a point.) I'll be sharing all five of these over the next few days and today we're talking about pets. The details from Money:

Despite all the sofas and shoes they destroy, pets have been shown to make you happier. What's more, caring for furry friends can help ease stress and lower your blood pressure, and a daily trip around the block with Fido is a chance to meet non-furry friends.

Ok, I'm giving pets their due with this post. I've detailed at length the cost of pets to the point where it's the most hated topic here at Free Money Finance and now it's time to see the other side of the story.

So let's say Fido costs $15,000 during his lifetime. If he helps to lower your stress and blood pressure, he is probably saving you money on medicine, doctor's visits and maybe medical insurance. In fact, he may even be saving your life. In addition, if you have to walk him, that may be your only exercise -- something else that will make you healthier and extend your life. Add to these that you're just "happier" by having a pet and maybe pets are worth the investment after all.

Now, should I be looking at a dog or a cat? ;-)

What Makes People Happy, Part 2: Hobbies

Here's a happiness shopping list from CNN Money -- a set of items that people say make their lives happier (something money can only do to a point.) I'll be sharing all five of these over the next few days and today we're talking about hobbies. The details from Money:

The lives of happy people tend to have a lot of flow--the high-intensity, utterly absorbing state that can come from a hobby that takes skill and concentration--for example, mastering an instrument, playing 18 holes of golf or finishing a crossword puzzle.

Here are a few of the hobbies I'm involved in (to various degrees):

1. Cycling
2. Growing roses
3. Volunteering at church
4. Coaching youth basketball
5. Playing chess
6. Blogging ;-)

I must say that I do get a lot of satisfaction from these and life would be much more boring without them.

How about you, what hobbies do you have that make you happy?

BTW, if you can turn your hobby into an income, then you'd not only be happier at work, but your net worth could take off as well -- a double bonus!

What Makes People Happy, Part 1: Marriage

Here's a happiness shopping list from CNN Money -- a set of items that people say make their lives happier (something money can only do to a point.) I'll be sharing all five of these over the next few days and today we're starting with marriage. The details from Money:

You may joke about in-laws and the old ball and chain, but an assortment of studies have found that married people are generally happier than singles. Do what you can to keep your marriage a happy one, including buying your sweetie the occasional $60 bouquet of roses.

Marriage also leads to a higher net worth -- so you can get happier and wealthier at the same time!

I know I would be much, much, much less happy if I wasn't married. How about you?

What Makes Up the Good Life?

An article I saved from Money magazine's August 2006 issue lists the response people gave to the question of what gives them the most pleasure. Want to guess what's on the list? Surprising (or maybe not so surprising) was the fact that money-related items weren't the only ones on the list. In fact, they were rather scarce. Here's what people said made up the good life for them (with the percent of people naming each items listed as well):

• Good health -- 84%
• A home you own -- 60%
• Children -- 48%
• An interesting job -- 46%
• Free and leisure time -- 36%
• A yard or garden -- 22%
• A luxury or second car -- 19%
• The latest electronic gadgets -- 19%

Interesting, huh?

I've long written that there are many things more important than money and this survey agrees. That said, I would still include money somewhere in the list of what makes for a pleasurable life. Here are some things I'd include on my list:

• My faith
• Good health
• My family
• A great job
• Financial security
• Interesting hobbies

So, what would be on your list of what makes up the good life?

How Do You Balance Money and Personal Fulfillment in a Career?

I recently ran into a piece on Yahoo that asks one of the age-old questions relating to money and work: how do you balance the need (desire) to make money with a sense of personal fulfillment in your career? Here are their thoughts:

Money or personal fulfillment? The challenge is to find a career that yields both. More and more job seekers are looking for more than a steady paycheck from their work. If you're like them, you want a career that's meaningful, satisfying, and stimulating. At the same time, you probably also have bills to pay and a family to support.

Personally, I went down the "more money than enjoyment" path early on in my career, but as I got older started looking for more of a balance. Currently, I'm in a position where I love what I do and who I work for and I'm paid a good salary too -- I'm in my personal sweet spot for now. Of course, that isn't to say that if the Indianapolis Colts asked me to run their franchise for $3 million a year that I wouldn't jump at it. ;-)

My guess is that most people will sacrifice personal fulfillment up to a point. People need to eat, buy clothes, have shelter, and the like, and until they cover the basics, people will likely do almost anything. Once they reach this point and surpass the "survival" level of income, however, they start looking for more and more fulfillment in their careers.

So what's the balance? What weight do you give to each? Would you give up some (or even a lot) personal fulfillment if it meant a very high salary? Or are you the kind that doesn't care what you make as long as you love your work?

For more on careers, see these posts:

• Timing is Important When Asking for a Raise

• Which is a Better Career Strategy: Staying with One Company Your Entire Career or Switching Companies Regularly?

• Don't Choose the Job with the Highest Salary -- Here's a List of Other Factors to Consider

How Much is Your Time Worth?

More and more these days, I'm basing financial decisions on TIME as well as money. In the "olden days," we'd drive all the way across town to save a dime (my wife still does this sometimes) but now I usually give it the time test before I decide to buy. Consider the following situation:

I'm at a store and thinking of buying a $20 item. I KNOW it's $2 cheaper at another place but that's a 15-minute drive away. What do I do?

I buy it at the first place -- $2 is not enough to account for the time and effort associated with going to the second store (much less the gas cost these days.)

But let's change the scenario a bit. What if the place it's $2 cheaper at is in the same mall -- just at the other end? For me, this would be a toss-up. For my wife, she'd go for the cheaper price.

Let's change it again. Let's say that you're considering buying a $500 item, but it's $50 cheaper (still the same percentage savings) across town (15 minutes away.) Is it worth the drive? I'd say it was.

So I guess it's the relationship between the absolute dollar amount saved and the time/effort expended to get it that's the deciding factor for me.

What about you? How do you make the time/money trade-off? Do you have any examples you could share with the rest of us?

The Most Cost Effective Ways to Stay in Shape

Money magazine had an interesting page in its June issue that compared the cost of various forms of exercise with the calories that those activities burned. They then got a "calories per dollar" number and compared the various exercises to get (as they call it) the "best burn for the buck." Here's their list:

• Running -- 1,100 calories per dollar
• In-line Skating -- 625 calories per dollar
• Kayaking -- 350 calories per dollar
• Swimming -- 240 calories per dollar
• Cycling -- 176 calories per dollar
• Golf -- 30 calories per dollar

Now a lot of assumptions go into these calculations, so check out the article (page 23) for details. But it's a fairly accurate analysis in my opinion.

That said, I do have a few thoughts on this:

1. The best exercise is an exercise that you'll do consistently. Some people like running, some skating, some swimming and so on. As long as you do something, that's DRAMATICALLY a better deal financially than doing nothing. (Why? Because you're protecting your most valuable financial asset -- you/your earning ability.)

2. Personally, I'm a cyclist and my bike has saved my life. Yep, it's a relatively expensive form of exercise but it's one I enjoy and one I'll do. In addition, people can generally cycle later in life and it's less stress on the body since there's not pounding going on (like there is in running.)

3. Who says that calories are the most important measure? I measure heart rate during exercising (I have a heart rate monitor) as well as take my resting heart rate once a month or so. Last time I took it my resting heart rate was 46 beats per minute.

4. In almost any comparison (whether it's energy expended or cost per energy), running will win. It's cheap to do and will get your body working hard in no time.

5. For me, running is boring and too hard on my body. Skating requires too much coordination.  Kayaking is too inconvenient (no water easily accessible.) Swimming is ok -- I'm thinking of adding it this winter as part of my cross-training program. Golf? Is this really an exercise? I guess all the walking would be worth a good amount, but most of the people I know use carts.

So, what's your favorite exercise activity? How do you think it would rate on Money's list?

Your Greatest Asset: You

In June's issue of Money magazine they comment that your greatest financial asset is you. I say it a bit differently as I believe that your career is your greatest financial asset. But we're really saying the same thing: your earning power is the greatest financial asset you have. Lose it, and your finances will soon become a wreck (unless you're really wealthy or have great insurance.)

Money deals with the relationship between health and wealth in depth in the June issue and I'll be commenting on several of their pieces over the next few days. For today, here are three sentences from their editor that summarizes their thoughts:

Boomers who developed health problems built wealth at less than half the rate of their healthy peers. Want to double the size of your portfolio? Exercise, cut out fats and don't smoke.

A few thoughts on this from me:

1. I've detailed what exercising has done for me and I'll keep at it as long as I can.

2. Here are similar lists on how to live longer and how to extend your life.

3. Good review here: your health is more important than money.

4. In addition to your body, you want to keep your mind sharp.

5. Here's a suggestion that saves you money, makes you money and keeps you in shape.

6. Cutting out those vices will improve your health AND save you money.

Something Money Doesn't Buy: Life

Here's a reminder that life is about much more than money. It's from the headlines a week or so ago:

Asia's richest woman, Nina Wang, has died of an unspecified illness after reports she had been battling cancer, leaving unanswered questions over her estimated $4.2 billion fortune.

This woman had billions of dollars, but do you think she'd have given it all away (or at least most of it) for a year more on earth? Or maybe even a few days?

When I saw this I just thought of how fleeting life is and while money is an important topic, there are certainly things that are worth much more.

Thus ends my philosophical post for the day. ;-)

Does Control of Your Finances Make You Happier?

I've talked a ton about how money and happiness are/aren't related -- mainly, if there's a relationship between the two and what the extent of that relationship is. Well, here's some new light on the issue from the book The Net Worth Workout: A Powerful Program for a Lifetime of Financial Fitness (see my rating for details):

According to Money magazine, control of your finances plays a bigger role in determining how happy you are than control of your job, health, friendships, or weight.

So maybe it's not having more money that makes you happier, maybe it's having more CONTROL over your money that makes you happier.

Hmmmmm.

I'd personally say that there is some correlation between having control over your money and happiness. I've lived without control of my money and lived with control of my money, and having control is certainly better. I found it miserable having my finances out of control (though my situation wasn't drastic by any stretch of the imagination. In fact, what I call out-of-control, many people today might call in control.) ;-)

That said, I still stand by my original opinion that having more money (up to a certain point) will make people happier. After that point is reached (I'm not sure I can say what it is in monetary terms -- it may be different for every person), more money will not result in much, if any, additional happiness.

Does this make any sense to anyone or am I off my rocker? What do you think about the relationship between money and happiness?

How a Bicycle Saved My Life

Ok, so maybe the title is a bit over-the-top. But my bicycle has certainly contributed a great deal to my physical well-being -- something that money can't buy. Here are the details of how cycling has contributed greatly to my life.

All my adult life I've had borderline bad cholesterol. Since I started keeping track of my results in 1998, my total cholesterol has been at a high of 237 and a low of 216. Why? Most likely it was due to very poor eating habits. During that time I had at least a one-year stretch where I ate at McDonald's every day. I look back on that time now and ask "what was I thinking?"

Fortunately, my "good" cholesterol has always been high too (due to regular time walking on the treadmill I assume) and as a result my cholesterol ratio has always been in the "good" range. And I have a healthy family history, so my risk for heart problems was low -- or at least that's what my doctor told me. Still, I wanted to see my cholesterol drop a bit -- to at least below 200.

So three years ago I took up cycling. I started it simply because it was something my wife and I could do together that was healthy. But being the compulsive person I am, it wasn't too long before I was training for and riding in events where I'd ride 100 miles in a day (they're called "centuries" by cyclists.) My heart rate during training and events was in the 140-150 beats per minute range versus the 110 bpm or so I was seeing on the treadmill. Certainly, my heart was getting a much better workout.

Two years ago, after I had a year of cycling under my belt, I went in for a physical and had my blood taken. For some reason, I never received the test results and I never called to ask for them (I figured that if I was on death's door, they'd call me.) Anyway, I recently went in for another physical and received the test results from 2005. My cholesterol was at a mind-numbingly-low 169! I was very pleasantly surprised, as you might imagine. I also had my blood taken again and am waiting the results with two more years of cycling and healthy eating under my belt. Is it possible that I could get below 150? To do so would be amazing for me.

I've probably spent $3,000 on cycling in the past three years. Has it been a good investment? I think so. Not only will it help to extend my life and make my quality of life better, but imagine what I would have had to spend on extra health costs (either now or in the future) without it. Seems like a good financial decision to me. What do you think?

Does Money Make You Happy? You Tell Me

I recently had a reader ask me to provide him with some thoughts on the relationship of money to happiness, so I sent him these links:

• Does Money Make You Happy?

• Is There a Relationship Between Money and Happiness?

• Will Earning More Make You Happier?

• Money, Happiness And The Pursuit Of Both

• Money Doesn't Make People Happy

• How to Be Happier

My opinion is as stated in one of the posts above:

I'm sure that money, by itself, doesn't make a person happy, but it does contribute to his/her happiness in some way. I think this is best summarized in that last thought above. If you have money, you don't have to worry about money. You don't have to fight with your spouse over it. You don't have to compromise on things you want to give to your children (within reason, of course). You still need to save, manage, and invest your money, but if you're "comfortable" financially, you're living with a lot less stress than most people and you should be at least a bit happier than they are.

Now, for your opinion. What do you think on this subject?

How to Live Longer and Decrease the Chances You'll Use Insurance, Plus a Great List for New Year's Resolutions

Here are some thoughts from the wonderful book The Bogleheads' Guide to Investing (I LOVED the book -- see my rating for details) on how to improve the odds you won't need to use insurance. It's also a great list for New Year's resolutions and also serves as a list of steps to take to live longer. Their thoughts:

• Don't smoke.
• Exercise regularly.
• If you drink, limit yourself to two drinks a day.
• Wear seatbelts, and don't drive under the influence.
• Eat the right foods, and maintain the proper weight.
• Get enough rest.
• Get regular medical, dental, and vision check-ups.
• Keep a positive attitude, smile, and laugh a lot.

Here's how I score on these:

1. Don't smoke.

2. Exercise at least four times a week.

3. Don't drink.

4. Always wear a seatbelt, and never drive under the influence.

5. I am the proper weight -- I'll be working on part 1 of this in 2007.

6. What was that? I missed it -- I was dozing off. ;-)

7. I get a physical and vision test once every two years (my doctors' preferences) and a dental check up twice a year.

8. I HAVE to have a positive attitude to do this blog, don't I? ;-)

Seriously, if you are missing any of these in your life, consider making them a resolution for this year. You'll feel better and live longer as a result. And, after all, life is more important than money.

Does Your Company Pay You to Stay Healthy?

While reading Smart Money's list of ways to maximize your benefits plan, I ran into this paragraph that I found very interesting:

Plenty of companies offer financial rewards in exchange for a pledge of healthy behavior. Pioneer Natural Resources Company in Dallas, for example, offers workers up to $700 a year for exercising regularly, not smoking and minimizing sick days and major medical claims. Employees at Westinghouse Electric in Monroeville, Pa., get $200 annually for performing 10 minutes of aerobic exercise three times a week.

Wow! Cool!

I'm sure that the company benefits financially from arrangements like the ones noted above. After all, an employee who exercises will probably save the company money on medical insurance, medical bills, lost time at work, and so on -- probably saving much more than the incentive the company is giving the employee. And the employee wins as well -- not only financially, but also simply by feeling better and living a more productive life.

My company doesn't offer a benefit like this (we're all pretty healthy anyway -- many runners and cyclists here), but I began wondering how many companies do. Does your company? If so, let us all know what it offers and how you like it in the comments below.

For more thoughts on the relationship between money and good health, see these posts:

• Save Money: Some Insurers Pay You to Get Healthy

• More Important than Money: Your Health and Your Mind, Part 1

• How to Stay Younger

Is There a Relationship Between Money and Happiness?

We've discussed the topic of money and happiness quite a bit here at Free Money Finance but this piece from Career Journal had a few interesting points that I wanted to add to the conversation. It tackles the same basic issue -- is there a relationship between money and happiness -- but offers a few unique perspectives. Their key thoughts:
 
According to a Pew Research Center 2006 report, the percentage of people who declare themselves "very happy" goes up as family income rises. People were asked: "Taken all together, how would you say things are these days, would you say that you are very happy, pretty happy, or not too happy?" Twenty five percent of people with incomes of $30,000 or less said they're "very happy." That compared with 50% of people with incomes of $150,000 or more.

Economist Richard Layard identifies the "big seven" of happiness as family relationships, financial situation, work, community and friends, health, personal freedom, and personal values. While a person's financial situation is just one element among the seven, a look at the other big six shows that money matters with them as well, too.

Top doctors and fresh vegetables help you keep healthy, and they cost money. Hiring a house-cleaner leaves means less fighting with your spouse, and household help costs money. A ski trip with your college friends strengthens those bonds, and it costs money. Giving to charity feels good, and it costs money.

Also, the idea that money can't buy happiness may overlook one of the most precious luxuries money does buy: not having to worry about money. Having money means you don't have to worry about paying for the intensive speech therapy for your child. Or about paying retail for a new digital camera when your old camera breaks right before your vacation. Or about buying a bottle of water on your way to the gym.

I'm sure that money, by itself, doesn't make a person happy, but it does contribute to his/her happiness in some way. I think this is best summarized in that last thought above. If you have money, you don't have to worry about money. You don't have to fight with your spouse over it. You don't have to compromise on things you want to give to your children (within reason, of course). You still need to save, manage, and invest your money, but if you're "comfortable" financially, you're living with a lot less stress than most people and you should be at least a bit happier than they are.

I can speak from experience on this point. I'm not wealthy by any stretch of the imagination, but because we keep our material "wants and desires" under control, live below our means, have no debt, and save and invest according to the principles I discuss here at Free Money Finance, our family is comfortable financially. As such, there isn't much financial stress in our lives and I believe that yes, it does contribute to our happiness in part.

What do you think?

How to Stay Younger

Yesterday I discussed how your mind is more important than money, so today I want to move on to your body and note that being physically healthy is just as important (and much more important to you than money). Today's piece is from Yahoo and tells how to stay younger and active into your 60s. Two of their key thoughts that I wanted to share:

Studies have shown that those who remain active and interact with others live longer, healthier lives. Therefore, keep mobile and involved in activities outside your home - it is good for you, both emotionally and physically.

Did you know that 88 percent of those older than age 65 have had one chronic health condition? This is why is it important that you see your doctor two to three times a year if you're in your 60s. In my practice, I see patients every three months, especially if they have chronic conditions that I'm monitoring.

I plan on staying fit and active well into my 60s (and beyond). I have a physical activity (cycling) that I enjoy and can be done well into older age at a good level (believe me, I've been passed by enough 70-year-old guys to know you can be a strong cyclist late into life) as well as interests that keep me active mentally. I don't want to plan and save for a retirement where I barely "get by" -- I want to retire and enjoy an active, full retirement. Just like we all need to save now for a financially fit retirement, we need to invest now in physical and mental activity to have a healthy and active retirement.

How to Keep Your Mind Sharp

As we all know, some things are more important than money (and even if you think it's not, your mind is obviously vital to your career, and that certainly has a big impact on your finances). One of those things is your mind. To keep your mind sharp, you need to keep your brain fit (yes, I said keep your brain fit) and preserve and protect your memory. Doing so will help you live a happier, healthier life.

Since I haven't discussed this topic for quite some time, I thought it was worthwhile to share this piece on how to keep your mind sharp. Here are their eight tips for doing so:

• Exercise your mind
• Stay physically active
• Develop healthy eating habits
• Drink alcohol in moderation, if at all
• Manage your stress
• Protect your head when exercising
• Stop smoking
• Talk to your doctor

Here's how I stack up on these:

1. I do exercise my mind. Of the list they provide in the piece on how to exercise your mind, I do the following:

• Play Scrabble or doing crossword puzzles -- I actually play chess, but I think that counts.
• Interacting with others -- Doesn't everyone do this?
• Start a new hobby -- I haven't started a new one lately, but my old ones (cycling, growing roses, personal finance) are keeping me busy.
• Learn a foreign language -- I started learning Russian last year, but have backed off a bit. Maybe I need to pick it up again.
• Volunteer -- I'm active at my church.
• Stay informed about what's going on in the world -- I have to in order to write this blog.
• Read -- Not as much as I like, but I do read quite a bit.

2. I exercise my body at least four times a week for at least an hour. I took my resting heart rate the other day and had 44 beats per minute, so I'm in fairly decent shape.

3. My wife does her best to keep me eating healthy foods. She actually manages to do a good job of this 80% of the time. But oh that other 20% can really set me back at times! ;-)

4. I don't drink alcohol, though some of you probably think I do based on some of my posts. ;-)

5. I'm actually at a low stress point in my life now.

6. I ALWAYS wear a helmet when cycling. No matter how good you are on your bike, you can always crash/get hit. Even Lance Armstrong crashed (and he did a couple of times without a helmet -- and it wasn't good.)

7. I don't smoke.

8. I'll bring up the "mind" issue with my doctor at my next physical (this spring).

Will Earning More Make You Happier?

So, will it? Will making more money make you happier? I've addressed the money/happiness issue before, and now there's a piece from Career Journal on the subject. They say "not necessarily" does money make you happier, quoting a recent study in Science magazine. Their main argument supporting this position on the relationship between money and happiness:

61% of people earning less than $20,000 a year report being "pretty happy" compared to about 52% whose annual income exceeds $90,000.

Ok, that's the media using misleading stats if I've ever seen it.

"Pretty happy" is the middle level in the survey they quote ("Very happy" is the highest and "Not too happy" is the lowest). While their numbers above are true, they don't give a complete picture of what's going on. For instance, consider these facts from the same study:

• 22% of people earning less than $20,000 a year report being "very happy" compared to about 43% whose annual income exceeds $90,000.

• When you take both "very happy" and "pretty happy" results, 94% of people whose annual income exceeds $90,000 fall into one of these two categories versus only 83% of people earning less than $20,000 a year.

• 17% of people earning less than $20,000 a year report being "not too happy" compared to 5% whose annual income exceeds $90,000.

• The numbers get closer the more you move up the income scale. Generally, the $20,000-$49,999 group is happier than the below $20,000 group and the $50,000-$89,999 is happier still (so much so that this latter groups numbers are similar to the exceeds $90,000 group.)

Looking at this, I conclude that people who make more are happier, though as they make more and more, the increase in happiness is less and less. In other words, once people make a decent salary, making more does result in them being happier, but not dramatically happier.

Now, whether making more is actually the cause of this happiness or not, that's up for debate.

I'd be interested in knowing what you think. My two cents is that people who earn more, up to a point, are happier because they do earn more. Whether this is because they get to buy more "stuff" or have more financial peace of mind, I can't say. But my guess would be that happiness is related to the amount a person earns. (BTW, I would guess that net worth is even more related to happiness than income, but again, this is just a guess.)

A Simple Suggestion that Saves You Money, Makes You Money, and Keeps You in Shape

Here's a money tip I'm sure you didn't expect from me. But it's a good one! Why? Because it does several things for you -- it saves you money, it makes you money, and it keeps you in shape. Here it is:

Start gardening.

Yep, you heard it correctly. Start gardening.

Want to know how this saves you money, makes you money, and keeps you healthy? Simple. Consider the following:

1. It saves you money in that you have a steady source of gifts (ones you grew yourself) that are often more valuable to the recipient than just another gift they don't need/want. Want an example? Read what roses have done to save me a bundle. Or, if you prefer to have a vegetable garden, it can save you lots of $$$$$ on food costs.

2. It makes you money by increasing the value of your home by 5-15% (as does planting trees, a related enterprise). So if you have a $200,000, a garden can add $10,000 to $30,000 to the value of your house. Not bad, huh?

3. How does it keep you healthy? Gardening improves your mood and sense of well-being, as well as giving you more energy and  helping with weight control. Here are some noted benefits:

Scientists have found that people who are active at a moderate level experience a long list of health benefits. Physical activity reduces the risk of developing heart disease, colon cancer, high cholesterol, high blood pressure, adult onset diabetes, osteoporosis, stroke, and depression.

Gardening and yard work contribute to healthy active living, and are part of all three types of physical activity – endurance, flexibility and strength activities. Heavy yard work like raking and carrying leaves contributes to both endurance and strengthening exercises, while all those stretches and contortions in the garden can help increase and maintain your flexibility.

And from Gardening Provides Many Health Benefits:

And anyone who has planted trees, created a flower bed from bare lawn, or hauled slate to design a walking path will tell you that dominating Mother Nature is hard work.

"It's going to give you a good way to burn calories that's an enjoyable activity for most people," says Dr. Roth. She adds that studies show that working in your yard or garden can burn between 250 calories and 500 calories an hour, depending on your level of activity.

And we all know that keeping yourself healthy is even more important than saving or making money.

Finally, gardening is something you can do well into the later years in your life -- providing a life-long, enjoyable hobby. (And for some, it will take a long life to learn to grow things.) ;-)

Great Financial Advice for Graduates (And the Rest of Us Too)

Here's a piece from Marketwatch where the author gives money advice to recent high school graduates. There is lots of good stuff in this piece and I want to highlight (in green) a few of the parts I like best. I've added in my commentary where appropriate as well. Here goes:

Financial success starts with spending less than you earn, and using the surplus dollars to reduce debt or save for the future.

Bulls-eye!!!!!! It all does start with spending less than you earn -- it's the one way people of almost any income can become wealthy. But if you over-spend, it doesn't matter how much you make, you'll still be going backwards.

If you couple spending less than you earn with a great saving and investment plan, it's easy to get rich and earn a million (or two!).

If friends, neighbors and acquaintances are fortunate enough to do a little better financially, feel free to applaud their efforts, but don't try to keep pace. Most people feel like they are entitled to nice things; the truth is that they are entitled to what they can afford to pay for while still protecting their future. Allowing someone else's priorities and earning power to set your own financial life off-kilter is dumb.

Yep. In my opinion, this is one of the reasons so many Americans carry so much debt -- they see a friend get something and they want it (or something better). They don't worry about the financial consequences -- they just borrow to pay for it. Bad move.

Today's graduates will know they have reached a new level of money maturity when they are able to give some of their cash away. "Giving til it hurts" actually can feel pretty good, even if the money involved is a small amount. The sooner someone learns that, the better they will feel about how they handle money.

It's nice to see a financial advice piece talk about the advantages of giving. Not only does giving help others and make the givers feel good, but some think that giving is one of the keys to getting rich. Some call this the power of giving.

The graduates I was talking to may have gotten a good education, but it didn't include 10 cents worth of information on managing money. They don't know how to balance a checkbook, make and keep a budget, or invest in a stock that Grandpa didn't pick for them. That has to change, and the sooner the better. They won't actually learn those lessons while taking college classes, but if they are lucky they will learn them during their time in college, so that they can be prepared to move on when next they graduate. But regardless of when someone learns money management skills, the important thing is that they figure it out, and the sooner the better.

I've discussed this a few times and several people have commented on it. Our education system does a poor job of teaching kids about how to handle money. That's why we, as parents, need to be sure we do it. The only problem with this is that many parents don't know what they're doing when it comes to handling money. Yikes!!!

Money provides opportunity, but it doesn't guarantee happiness. And until someone can put a price tag on what it takes to be truly content and happy, it will pay to remember that adult life is not all about the pursuit of greenbacks. 

True. That's why I have a whole category here at Free Money Finance devoted to things that are more important than money. A few things on my list: time, health, kids, mind, and happiness.

Being Thankful

In all this talk about money, I often lose myself in just that -- money, money, money. Though I don't mean for it too, sometimes it just overwhelms me and becomes too much of a focus. Too much of a focus, that is, compared to what I want it to be.

That's one reason I started the More Important than Money category -- so I could regularly remind myself (and others) that money is not the end all and be all.

Another thing I like to do to re-focus now and then is think about all the things I'm thankful for. It moves me away from thinking about money to what matters most in my life. A few of the things I'm thankful for:

• My faith
• My family - immediate family and my mom, dad, and several close relatives
• Good friends
• Good health
• A wonderful job with great co-workers
• KFC 3-piece meals ;-)
• Time to relax and enjoy it all

So what about you? What are you thankful for? Leave your thoughts in the comments below to help yourself and others shift our focus -- if only for a little while.

Save Money: Some Insurers Pay You to Get Healthy

We've already established that you can save money by taking care of yourself (not to mention that your health and your mind are more important than money) on more than one occasion, and this article from Money Central agrees. It discusses how some insurers pay you to get healthy. Their key thoughts:

Insurers are beginning to realize they can cut their own costs -- and those of their insured members -- by encouraging and rewarding healthy behavior. To that end, insurers are helping to subsidize everything from gym memberships to food bills and offering incentives such as T-shirts and iPods for people willing to work up a sweat.

The piece then details insurance companies that give you discounts for the following:

• Eat healthy -- Members receive up to a $200 rebate each year.

• Exercise often -- Join a qualifying gym, exercise at least eight times a month, and [get] reimbursed $20 of monthly membership.

• Stop smoking -- Free and reduced-cost smoking-cessation programs are offered by many insurers ($2,000 cost).

• Measure your health -- Program allows people to reduce their premiums just by taking a health-risk assessment.

• Play for prizes -- Members enrolled in the program get points for each day that they exercise -- can redeem them for everything from t-shirts to electronics.

I think what we're seeing here is only the tip of the iceberg. As medical costs keep rising and insurers look to lower their costs (and insurees look to lower their premiums for that matter), I think we'll see more and more programs geared toward getting people to exercise and eat well. Really, we all should be doing this anyway since good health is a proven way to extend our lives.

How to Make a Million Dollars in Ten Years, Part 1: Staying/Becoming Healthy Helps You Spend Less and Earn More

Oh yeah, now we're talkin'! Want to know how to make your net worth grow by a million dollars in ten years? Well, this piece from Smart Money is going to tell us how, and I'll be posting on it (and adding my commentary) over the next several days. We'll start our with a few thoughts from their introduction:

A million bucks may sound like an unobtainable goal, but there are already 7.5 million millionaire households in the U.S., according to Spectrem Group — more if you include the equity people have built up in their homes. That means Americans who have a million dollars outnumber those who are unemployed. Anyone with a reasonable income and a little discipline can hit the seven-figure mark somewhere along the road to retirement.

That's why we've put together this guide to making a million in 10 years. It's an entirely realistic goal: It doesn't have to mean dreary sacrifices like brown-bagging your lunch, nor will we ask you to risk your savings on infomercial-style real estate schemes. What is required is a thoughtful, disciplined approach to every facet of your financial life from your career goals and spending habits to your savings and investment strategies.

Oh great -- this is going to require discipline. Well, that eliminates 80% of Americans. If the other 20% of you want to come along for the ride, I think this should be fun. ;-)

We'll start today with "health." Yes, it's an unusual tip in our quest for a million dollars, but Smart Money says good health is worth $84,000 in the ten years we're working to get to one million dollars (on the other hand, I've said good health is more important than money). It does this by helping us spend less on health-related medical and insurance costs as well as earn higher incomes. But I'm getting ahead of myself. Let's start with Smart Money's summary on the issue:

Recently economists have found that getting healthy appears to help make you rich. In one RAND Corporation study examining a cross section of 35- to 44-year-olds across a decade, those who reported excellent health in 1984 nearly doubled their household wealth over the next 10 years, to $194,000. In contrast, those who reported poor health at the start saw their wealth grow a paltry $9,000; folks whose health declined over the decade actually lost money.

Why is this? One key is that healthy people save money by keeping themselves healthy:

People with healthy habits are less likely to develop diabetes, asthma or high blood pressure, not to mention heart attacks or cancer. According to a second RAND study, overweight people pay 10 to 36% more a year on hospital stays and ambulances, depending on the severity of their weight problem. Smokers pay 20% more. Fitness counts too. Aging couch potatoes who started exercising at least three times a week saved an average of $2,200 a year on medical expenses, according to a recent study by Bloomington, Minn.-based HealthPartners Research Foundation. With a typical high-income household spending $3,500 a year on health care, it's easy to see how a good diet-and-exercise program can lead to major savings. If one of our future millionaires went on a diet and the other quit smoking, they could conservatively expect to cut their health care costs by a third, leading to an extra $12,000 in the bank by 2016.

Even better news -- healthy people earn more:

Take two men of the same age, race, education and marital status who work in the same industry, and the thin guy will earn, on average, 3% more than Joe Doublegut. The fat penalty for ladies is even higher: Slim women earn nearly 6% more than their overweight sisters. In the study that generated these findings, coauthors Charles Baum and William Ford, economics and finance professors at Middle Tennessee State University, suggest that employers discriminate against the obese when deciding who gets the best training opportunities. Unfair, maybe, but until life is fair, hitting the treadmill is a good defense. Smokers suffer similar discrimination: Even after accounting for race, gender and education, puffers earn 4 to 8% less than their peers. For our future millionaires, better health habits could earn them an extra $54,000 over the next 10 years.

The average American gains a few pounds and adds $3,000 to her nest egg every year. But a modest weight loss, from chubby to normal, correlates with a 37% increase in wealth. More-dramatic weight loss brings more-dramatic gains. "Personally, I believe there's a causality between dieting and increasing your net worth," says Zagorsky. "There really are simple things that normal people can do to change their wealth."

Wow! There's some really great stuff here!

So here's where we are so far on our quest to add $1 million to our net worths in ten years: being healthy will add $84,000 to our net worths since it will both 1) helps us save money and 2) helps us earn more. In addition, I'd add that it will make quality of life better and extend your life -- two "side benefits" that are worth a lot!

Click here to read part 2 of this series.

More Important than Money: Your Health and Your Mind, Part 5

Here's part 5 of a Parade article that offers interesting facts on how fitness can help both your mind and your health -- both of which are more important than money (see How to Preserve and Protect Your Memory and Make It Grow and More Important than Money: Your Health for details). Today, we'll see how exercise may help relieve moderate depression:

Researchers at the University of Texas Southwestern Medical Center showed that 30 to 35 minutes of aerobics, three to five times a week, reduced moderate depressive symptoms by almost 50%. “The effect of using exercise alone to treat the condition is comparable to the effects of antidepressants,” concludes researcher Dr. Madhukar Trivedi.

My thoughts:

1. Funny -- I'm most depressed BEFORE a workout, when I know I have an hour's worth of pain ahead of me. ;-)

2. With all these positive benefits of exercise, why WOULDN'T people exercise?

3. If you don't exercise, make a plan to start. It will not only improve your health, but also save you a boatload of money. (And while you're at it, cut out those vices to help your health and pocketbook even more.) As we've seen in this series, you don't have to run a marathon or bike 100 miles to see the benefits of exercising. Just get out and walk, do some chores every day, garden and the like. These simple tasks deliver substantial benefits that will improve your quality of life in many different ways.

More Important than Money: Your Health and Your Mind, Part 4

Here's part 4 of a Parade article that offers interesting facts on how fitness can help both your mind and your health -- both of which are more important than money (see How to Preserve and Protect Your Memory and Make It Grow and More Important than Money: Your Health for details). Today, we'll see how exercise can improve oral health:

Experts at Case Western Reserve University in Cleveland found that people who worked out regularly cut their chances of developing gum disease by 40%. “Physical activity reduces stress and inflammation in the body, both of which play a significant role in gum disease,” says researcher Nabil F. Bissada. “Any type of moderate or vigorous leisure-time exercise—such as walking a mile without stopping, bike riding, dancing or yard work—done three to five times a week will work.” But, he adds, you also need to maintain a normal weight and good diet.

My thoughts:

1. Oh, great. I loved this thought until the last sentence. ;-)

2. I wish I'd known this earlier, I would have had my son on a vigorous exercise program -- maybe we could have eliminated his braces. ;-)

3. Isn't it amazing how much of a positive impact exercising can have on all parts of your body and what an impact it has on overall quality of life?

Click here to read part 5 of this series.

More Important than Money: Your Health and Your Mind, Part 3

Here's part 3 of a Parade article that offers interesting facts on how fitness can help both your mind and your health -- both of which are more important than money (see How to Preserve and Protect Your Memory and Make It Grow and More Important than Money: Your Health for details). Today, we'll see how staying active may significantly lower your chance of developing Alzheimer’s:

Mice who exercised on running wheels developed less plaque deposits in the brain—the basis for a diagnosis of Alzheimer’s—than those who did nothing. “Exercise protects against the age-related loss of brain tissue and may affect the expression of genes involved in Alzheimer’s disease,” says Paul Adlard of the University of California at Irvine. Further studies are needed to determine how much and what kind of physical activity will generate the most benefits in humans. Still, the message is clear: Exercise at any age can enhance cognition.

My thoughts:

1. Double benefits of exercising -- helps both your mind and body.

2. In addition to physically exercising, mind-challenging tasks like doing crossword puzzles, playing chess, and learning a new language keep your mind healthy by mentally exercising it.

3. I have a few more posts on keeping your mind healthy that you may want to check out. They are How to Keep Your Brain Fit, Exercising Your Most Important Assets, and How to Make Your Brain Fitter in Six (Sort of) Easy Steps.

Click here to read part 4 of this series.

More Important than Money: Your Health and Your Mind, Part 2

Here's part 2 of a Parade article that offers interesting facts on how fitness can help both your mind and your health -- both of which are more important than money (see How to Preserve and Protect Your Memory and Make It Grow and More Important than Money: Your Health for details). Today, we'll see how aerobics can make you a more productive worker:

A study at Leeds Metropolitan University in Britain revealed that engaging in physical activity on your lunch hour can improve your mood and productivity. “On days that people exercised, they were better able to manage time demands and were more tolerant of mistakes—no matter who made them,” says researcher Jim McKenna.

My thoughts:

1. I'd love to work out at lunch., but it's a one-and-a-half-hour commitment (at least) by the time you get ready, exercise, and shower. I just can't take that much time out every day (though maybe I could a couple times a week). I usually exercise at night and on weekends.

2. Your career is your most valuable financial asset and managing it correctly can earn you millions of dollars in extra income throughout your lifetime. Maybe exercising, by helping you be a better worker, will put some significant dollars into your pocket!

Click here to read part three of this series.

More Important than Money: Your Health and Your Mind, Part 1

As I've written before, your mind and your health are more important than money. Recently I ran into an article from Parade magazine that offered interesting facts on how fitness can help both your mind and your health. I'll be sharing parts of the article each day for the next few days and adding my comments. Today, we'll review the fact that something as simple as cleaning your house can make you healthier:

A study at Indiana University in Bloomington showed that lifestyle activities such as vacuuming or even walking Fido can significantly lower your blood pressure. Shooting for four hours of accumulated activity over the course of a day does the trick. “Routines with an aerobic component—mowing the lawn or running up and down the cellar stairs—were the most beneficial,” says researcher Jaume Padilla.

A few thoughts on this:

1. I can testify that mowing the lawn is a good workout. Especially with the circa 1980 mower we got from Sears that's STILL RUNNING!!!!

2. "Shooting for four hours of accumulated activity over the course of a day does the trick." I think this is the reason that older people who remain active do well versus those who simply "relax" by attaching themselves to the couch.

3. Don't let my wife see this post or she'll suggest I stop biking and start cleaning! ;-)

Click here to read part 2 of this series.

How to Extend Your Life

I write a series here at Free Money Finance called More Important than Money. So far, I've detailed several things that I think are more important than money including health, time, your mind and your children. But now, here's a piece that covers something that I'm sure we all can agree is REALLY more important than money: our lives (and living longer).

As such, I wanted to share an article starting on page 67 of June's issue of Smart Money magazine. It lists how you can extend your life. Smart Money summarizes it into five simple tips -- each with an estimate of how many years it will add to your life. Here's their list:

• Manage your weight. Potential longevity gain: 6 to 7 years.

• Lower your blood pressure. Potential longevity gain: 5 years.

• Exercise. Potential longevity gain: 1.3 to 3.7 years.

• Quit smoking. Potential longevity gain: 10 years.

• Think positive. Potential longevity gain: 10 years.

Very interesting list to be sure. Here are my thoughts:

1. I'm surprised that the years saved for exercising is so low. Now I guess it also helps with managing your weight and keeping your blood pressure down, so maybe it has the impact of up to 15 years or so if it can make all of the first three happen. Does this make sense?

2. Where's proper nutrition on the list? Again, I suspect it's part of the first two.

3. I've said my piece about smoking and how you need to quit. Save your money and 10 years of your life by stopping today.

4. It's interesting that the positive people live longer. In fact, the article says "attitude is a better predictor [of longevity] than exercise or smoking." So, if you're going to smoke and be a slouch, for heaven's sake, please be positive about it! ;-)

Being a Steward of Your Time

I've written before that time is more valuable than money. Why? Money can be replaced, but once time is gone, it's gone for good.

Just as Christians need to consider how to be good stewards of the money God has given them, we also need to be good stewards of the time God gives us. I found a piece where a reader at Eternal Perspectives asks how he could be a better steward of the time God has given him. Here's part of the answer that I wanted to share with you today:

When we keep track of how we spend our time it makes us better stewards because we become aware of what we otherwise don't really know. For example, people normally watch far more TV than they think. Becoming aware is the first step of stewardship, which puts us in a position to decide "I want to spend more time reading some great books and talking with my wife and reading to my kids, and to steward this time I can reduce my television watching by 10 hours each week." Again, we won't do this without a clear picture of how we're currently spending our time.

To me, this seems to be a good, practical outlook on the stewardship of time. I must admit that I haven't done it yet (kept a detailed record of how I've spent my time), though I think I will. I'm sure it will turn up some interesting bits of information.

Money Saving Tip: Take Care of Yourself

You know that your health is more important than money but here's a way to improve your health and SAVE money at the same time from USA Today. Their key thoughts:

With the cost of health care in retirement rising rapidly, one thing boomers can do to lower their expenses is lower the risk they'll need expensive drugs or medical treatments.

Turns out that what you eat, how much you exercise and whether you smoke can add or subtract big dollars from what you may need to cover medical costs in retirement.

A growing body of evidence shows that moderate exercise — 30 minutes a day most days of the week — can substantially reduce the risk of developing some of the most costly and debilitating conditions, including heart disease, some cancers, diabetes, depression, obesity and stroke. Some researchers have also found a link between exercise and a reduced risk of dementia.

"It's good for health as well as for your pocketbook," says Jerry Avorn, professor of medicine at Harvard and author of Powerful Medicines.

Ok, that's all fine and good, but how much money can you save? I'm glad you asked:

• For the cost of a walk a day, you might be able to put off or avoid altogether taking blood pressure drugs or cholesterol medications, for which you could spend $50 to $100 or more a month.
• Avoid developing diabetes, with its myriad expensive health problems, such as kidney failure, blindness or limb amputation, and you could see much bigger savings. Government statistics show the per-capita health care costs for people with diabetes is 2.4 times higher than those without the disease. The cost per person averages more than $13,000 a year.
• And if you can stave off dementia and live on your own longer, you can avoid the $70,000 or more a year that nursing homes cost.

The article ends with some tips on what you can do to keep yourself in shape:

• A study published in the Annals of Internal Medicine in January showed that people who did even modest amounts of exercise — 15 to 30 minutes a day a few times a week — reduced their chances of developing dementia by 30% to 40%.
• Elevated blood pressure and the risk of heart disease were cut substantially among a group of people who did three hours a week of moderate physical activity, reduced their sodium intake and ate more fruits and vegetables, a study released in that same journal on April 4 showed.
• People at risk of diabetes cut their chances of developing the disease 58% by walking 30 minutes a day on average and losing 5% to 7% of their body weight, compared with a similar group of people who did not participate in an intensive lifestyle change program. The study of more than 3,000 people by the National Institutes of Health in 2002 also found that exercisers did better than a third group, which took the diabetes drug Glucophage. That group cut its risk by 31% compared with a similar group taking a placebo.

So, you can save money and improve your quality of life by exercising, eating right, and avoiding all of those vices in life. Or at least many of them -- I'll let you hang on to a couple as long as they're not too bad. :-)

Here are some additional thoughts on this subject from Free Money Finance:

• Money Saving Tip: Cut Out Those Vices
• More Important than Money: Your Health
• How to Preserve and Protect Your Memory and Make It Grow
• Exercising Your Most Important Assets

Money Saving Tip: Cut Out Those Vices

Ok, now I'm getting into your business. ;-)

In the past, I've noted how you can save you a bundle of money by quitting smoking. But now, we're going to pick on a couple other "vices" as well.

This piece from Money Central asks, "Are your vices killing your finances?" It's about how people spend a ton of money on the "big three vices": smoking, alcohol and coffee.

Before you click away immediately, just stick with me a second. I'm not going to try and steal all the fun from your life with this post. It's simply an honest look at the costs of these three. And if you stick around until the end, I might have a confession myself for you. ;-)

The article starts by acknowledging that talking about limiting these three isn't a popular idea:

Talk about a buzz kill, right? These are the personal indulgences we hold near and dear. They provide the moments of sheer visceral pleasure that get us through the heavy slogging of daily life.

Not only are we willing to pay the oh-so-affordable retail price for these self-rewards, we actually bundle them into our cost of living without a second thought, as if they were necessities like groceries, toothpaste or gas for the road.

Next, before it gets to the financial impact of these three, the article offers some other reasons you may want to consider backing off of them:

Granted, each is addictive and has physiological side effects we'd rather not dwell on, ranging from hypertension to lung cancer, sleep disorders to emphysema, halitosis to heart attacks.

Finally, we get to the money talk -- with the reason why you may want to cut back on these three:

No one is suggesting that you heartlessly kick your three amigos to the curb and get thee to the nearest yoga class (which can also be pricey!). But if sizable expenses are beginning to appear on your radar -- perhaps a larger house, or college for the twins -- you may be surprised at how much you can save by sacrificing one or more of your favorite vices.

To cut to the chase, here's what the article says you can save:

Alcohol

Based on our three-city survey, Bankrate found that a domestic bottle of beer plus tip on average will run you $4, while a call drink (lowest-price name brands) will run you $6 a pop. If you have two beers or drinks each day, here's your bar tab:

• Weekly: $56 for beer; $84 for call drinks.
• Monthly: $240 beer, $360 for call drinks.
• Annually: $2,920 beer; $4,380 for call drinks.

If you were to put your bar tab into a tax-free 529 college savings plan earning 7% for your newborn, by the time she's ready for college you would have accumulated $99,277 (beer drinker) or $148,916 (call drinks), before taxes.

Smoking

Bankrate average price of a pack of cigarettes: $5

• Daily pack: $5
• Weekly: $35
• Monthly: $150
• Annually: $1,825

That puts that annual community college tuition just $251 away. Put that into a tax-free 529 college savings plan earning 7% for your newborn and by the time he turns 18, you'll have stashed away $62,048 before taxes for college.

Coffee

Bankrate average price for a Starbucks double tall latte: $4.

• Daily double tall latte: $4
• Weekly: $28
• Monthly: $120
• Annually: $1,460

And this doesn't count any of the health-related costs of these items. I'm not sure what they are for the first and last items (I'm sure someone will comment that drinking a glass of wine a day is actually GOOD for you), but I know the average smoker pays $1,600 more annually, on average, on health-care costs than a non-smoker. Not to mention that good health is priceless.

Thankfully, I don't drink, smoke or drink coffee, so I'm good with this article. ;-) However, I do have one vice that I need to give up: diet soda.

I drink four, 12-oz. diet sodas every weekday. My employer provides them for free, so there's no cost, but they're still not good for me. Yeah, they taste good (make that GREAT!), but the tooth decay, stomach issues, etc. just aren't good for me. And who knows what long-term impact of pouring all these chemicals into my body will be in 10 years. So, I need to quit (or at least cut back.)

There! Confession over. ;-)

More Important than Money: Your Health

I've posted before that your health is more important than all the money in the world. After all, what good is a ba-zillion dollars if you are in such poor health that you can't enjoy it?

Here's another article on the subject, this one saying that half of cancer deaths are preventable. The bottom line:

As many as half of cancer deaths could be prevented if more people made lifestyle changes such as avoiding smoking and excessive sun exposure, eating nutritiously and getting regular exercise and recommended health screenings, according to a study from the American Cancer Society.

Here's how the numbers break down:

Smoking is by far the biggest sticking point because it increases the risk of many kinds of cancer, not just lung, and is expected to kill 170,000 this year. What's more, about a third of the 564,830 expected cancer deaths in 2006 will be related to poor diets, physical inactivity and obesity, which itself causes many chronic illnesses, the report said.

Here are some of my posts that give more details on the facts noted above:

1. You need to stop smoking.

2. Be sure to get plenty of exercise.

3. Work to keep your brain fit and preserve your memory.

As soon as I find a great "nutrition" piece, I'll add it to this category. Remember, we all want to grow our net worths, but we also want to enjoy them -- and good health is a big part of enjoying what you have.

AARP's Look at Act II of Women’s Lives: Thriving and Striving from 45 On, Part 3

Here's part 3 of some information sent to me by the AARP Foundation's Women's Leadership Circle, which commissioned research to gain insight into the issues faced by women who are 45+.

This part focuses on women's ‘image’ of aging:

• The majority of women 45+ consider themselves to be happier now than they have ever been (65%), thus strongly deflating the myth that the older women become, the less happy they are.
• 92% of women 45+ feel they have a network of friends and family they can rely on. However, 30% of women 45+ worry about becoming a burden to their families. 22% worry that they will be alone in later years and 19% worry that they will have no one to take care of them. Nearly half (47%) of all Hispanic women 45+ are concerned that they will become a burden to their family as they age.
• 83% of women 45+ are experiencing a greater sense of freedom to be themselves now that they are older.
• 77% of women 45+ consider their older years a time for pursuing dreams and doing things they have always wanted to do.
• 36% said if they were alone, they would find the idea of sharing a home with women friends to be appealing.

Not many surprises here. People in general seem to be happier with themselves as they grow older. Kind of nice, since we're all growing older every day.

I recommend you check out my retirement and more important than money categories for loads of tips (financial and otherwise) for making sure your golden years are truly golden.

Comments: Exercising Your Most Important Assets

Here's a comment to my post on Exercising Your Most Important Assets that talked about the need to exercise our minds and bodies to keep them in good, functioning order well into our senior years. A reader made the following comment which I thought was a really great idea:

I have a suggestion for fellow parents. If your child is learning a foreign language in school, join in. Invest a little money in a textbook and a dictionary and learn right along with your child. Obviously, this approach works best if your child is just starting. My son will be starting to learn German next fall (or at least that was his first choice for a foreign language). I'm going to study right along with him.

Simply a great idea! You learn something new (and maybe useful), help keep your mind sharp, and enjoy doing it with your son/daughter.

What other ideas are out there for keeping minds and bodies active? Please share your thoughts below.

How to Preserve and Protect Your Memory and Make It Grow

I've written before about how having a sound mind is more important than money. I've covered the topic from several angles, having detailed how you can keep your brain fit, how exercise can help your mind stay young, and how you can make your brain fitter in six easy steps. The short of it is: there are ways you can keep your mind healthy late into life if you take a proactive approach to exercising your mind.

This piece from Market Watch is similar but gives some new thoughts on the subject of exercising your mind. It tells how to preserve and protect your memory and make it grow. Their key thoughts:

But it's quite normal to lose some memory as time goes on. It's also occasionally normal to draw a blank on the phone number of a friend or the name of a Hollywood star whose picture is right in your mind's eye.  If you had a photographic memory years ago while you were in college, don't expect to regain it immediately if you later enroll in a literature course. But with some practice, you probably can regain much or most of your masterful memory.

One of the surest ways make the most of your memory is simply to pay more attention to paying attention. That's because very much of your memory is simply a matter of concentration and focusing on a task. "To learn a set of instructions to a new location, for instance, repeat the directions out loud. Just by concentrating on what you want to remember, your memory will improve dramatically."

The authors note that there are three factors that characterize those who maintained their mental abilities over time: 

• They were more mentally active, meaning that they did everything from reading books and tackling crossword puzzles, to using a computer and going to lectures or concerts. And they were less likely to spend time in the passive mode of watching television.
• They were more physically active.
• They maintained a sense of effectiveness in the world around them, meaning that they continued to maintain a sense of control over their lives, felt that they were contributing to their family or to society, and generally felt good about themselves, too.

Good information. I've stated before that I like to play chess and am learning a lot of new computer skills with this blog. I also exercise frequently, so hopefully these efforts are helping to keep my mind sharp (though my wife may say differently). ;-)

The piece ends with speculation that women/shopoholics all over the world will love to hear:

"We can't prove this, but it may be that women not only live longer but possibly maintain their brain functions better than most men in part because they shop. While shopping, they are physically active, wandering through stores and carrying parcels. They are mentally active, comparing prices and making choices. And, after completing their shopping, they feel they have accomplished something."

So, if shopping is related to higher mental awareness, could the credit card companies come out with campaigns that say, "Pile up more debt with us -- the shopping will help keep you mentally alert."? ;-)

Protect Your Most Precious Assets

Since I'm in the process of updating my will, I guess articles about wills are really catching my attention. This one is from Kiplinger's starts off with the best reason to complete a will -- to protect your kids:

Many parents put off writing a will because they see it as a downer -- a way to dispose of your assets after death. Think of it instead as a way to protect your most precious assets -- your children -- if something should happen to you and your spouse while the kids are minors.

The article then gives some tips on how to select a guardian for your kids -- probably the hardest decision you'll make regarding your will. Their thoughts:

• Look to your generation. Many older people lack the stamina or the desire to start child-rearing all over again.
• Name one guardian, not two. Choosing a couple might seem natural, but things could get complicated if the couple splits up.
• Consult the prospective guardian. Don't assume the person you have in mind is prepared to accept the job. If your children are old enough to understand, tell them your plans.
• And don't be shy about leaving a letter or recording in which you give detailed instructions about how you want your children to be brought up.
• You may even want to name two separate guardians: a guardian of the person to take care of your child, and a guardian of the property to manage your child's finances.

This is good advice -- and we'll consider it as we have our will updated. Currently, we have named a couple in our generation and have talked to them about the issue (of course). We've also separated the guardians from the inheritance dollars by naming a trustee who will make sure the kids are well-provided for (and reasonably provided for).

For other posts on this issue, see these links:

• Proof that You Need a Will (And What to Do About It)
• Wills that Work
• Benefits of a Will

Exercising Your Most Important Assets

I've talked about how your mind and health (body) are more important than money. With them, you can always get more money and enjoy life in the process. But without them, life can be miserable no matter what you own -- and all the money in the world can't buy good health and a sound mind.

This piece from Market Watch agrees with me and discusses how you need to exercise your most important assets (your mind and body). Their summary thoughts on this issue:

Your most valuable assets -- unquestionably and by far -- are your mind and body themselves.

The piece contains tons of facts, quotes from research, etc. on this issue. Here are my favorite takeaways:

• Scientific evidence increasingly points to the fact that you can take immediate and effective steps now to enhance these assets -- to keep your mind and body functioning at peak pitch much longer and better than we had previously thought.
• A lot of this has to do with exercise -- regular, hard, varied, determined and challenging exercise. The more of it we get, the better we stand to perform well mentally and physically, and the longer we stand to live.
• Medical scientists now are talking about much more than the simple old truism that exercise makes us stronger and fitter. What they are saying is that purposeful physical work and mental challenge (as when you tackle a difficult crossword puzzle or even a new dance step or other intricate movement) create actual physical changes in the body and brain.
• Says Shari Roan, a Los Angeles Times staff writer who has extensively studied the subject: "Movement appears to enhance memory, learning, attention, decision-making and multi-tasking, among other mental functions. It may slow or even reverse age-related decline."

They conclude with this thought:

Bottom line: You almost certainly can enhance your most important asset if you invest your time in a personal program of challenging physical and mental exercise.

I couldn't agree more.

On the body side, I train four times a week for an hour either on a bicycle or an elliptical machine.  This will bump up as the weather gets warmer and I can ride outside once again.

On the mind side, I have challenging work, am involved in numerous charitable projects which are fun and exciting, and I play chess when I find the time (I play blitz chess -- all moves are made very quickly -- so a game doesn't take that long). I've also studied Russian a bit lately, but haven't found the time to keep up with it. And I've read that learning new computer skills helps as well, which is something I certainly do running this blog.

What do you do to keep yourself physically and mentally fit? Please share your thoughts with us all in the comments below -- perhaps something you say will help someone else get started on the path to good physical and mental health.

How to Make Your Brain Fitter in Six (Sort of) Easy Steps

I've written previously that your mind is more important than money and that there are steps you can take to make sure your brain stays fit. So when I saw this web show from Forbes on how to make your brain fitter in six (sort of) easy steps, I had to share it. Their six ways to help keep your brain fitter:

1. Music

2. Languages

3. Juggling

4. Dancing

5. Puzzles

6. Ping Pong

Ok, I'm in trouble with these because:

1. If they mean LISTENING to music, I'd be cool. However, they're talking about playing. Not one of my strong points.

2. I'm still working on mastering English (though I can count to ten in French and Spanish and I learned some Russian this past year -- enough to say, "I don't understand Russian." Think this will help me out?)

3. I can juggle a career, a wife, two kids, church commitments, a side business, riding my bike several thousand miles a year and a seemingly endless list of "to-do's", but that's about all I can keep up in the air at once.

4. Let's put it this way: saying that I have "two left feet" would actually be a gross over-exaggeration of my dancing ability.

5. FINALLY! One that works for me. I love puzzles (and their cousin -- challenging games/brain teasers). Maybe there's hope for me yet.

6. Yes! Two in a row! I love ping pong as well. Too bad I haven't played it in 10 years.

Ok, at least I have a handle on many of these - there may be hope for me yet. ;-)

David Bach Day at Free Money Finance, More Important than Money: Giving

One thing I personally love about David Bach's books is that he always includes a chapter on giving. There aren't many personal finance books that talk about giving -- much less devote a chapter to it -- and I commend David for doing this and keeping an important financial topic in front of the millions of people he reaches.

Here's one of my favorite quotes on giving from The Automatic Millionaire Homeowner:

Money is good, and I sincerely hope you get the riches you want. But money will not give your life meaning.

What will is giving something back. As I see it, the only reason to learn how to make more money and build wealth is ultimately to be able to help others. We are put here to make the world a better place. And here's something amazing. Although you should give simply for the sake of giving, the reality is that abundance tends to flow back to those who give. The more you give, the more comes back to you. It is the flow of abundance that brings us more joy, more love, more wealth and more meaning in our lives.

I've written about David's thoughts on giving before. See these posts for more information:

• A Thought on Giving from David Bach
• More on Giving from David Bach

David is backing up his words with action. Recently, he donated $120,000 to Habitat for Humanity in NYC. This is from his newsletter:

Your support for this book [The Automatic Millionaire Homeowner] is also going to help an amazing cause. That's because I am personally donating $120,000 of the proceeds from this book to Habitat for Humanity in New York City. Everyone at my company, FinishRich Media is so thankful to be able to participate in this project to completely renovate and rebuild a beautiful historic building in the Bronx, New York which will provide a new home for 8 families. We couldn't have done this without you.

I've donated to Habitat for Humanity before myself and am familiar with their work. It's a great organization. If you're looking to give to a deserving charity that makes a tremendous difference in the lives of people, I recommend you consider donating to Habitat for Humanity.

This series is brought to you by Emigrant Direct.

Why I Pay More to go to a Car Dealer for Service Work

Yesterday in my post titled What My Second Credit Card Does for Me, I promised to tell you why I plan to go to my dealership to get my car serviced even though it costs more than other options. But before we do this, let's look at the facts:

• Servicing items: Oil change, grease, tire rotation
• Price at my "old" place: $14.95
• Price at dealership: $34.95

Ok, so my dealership is $20 more. And while $20 is not a fortune, there's no need to pay extra for something like this, is there?

Well, here's what my brand new dealership offers that the old place doesn't:

• Individual work cubicles with internet hook-up
• Free flavored coffee and treats (muffins, doughnuts)
• Clean, spacious, conveniently located rest rooms
• Lounge with big screen TV (in case I wanted to watch TV while pounding on my laptop and drinking my free coffee)

Now while all these add up to make for a pretty enjoyable "wait" at the dealership, it's the first one that really convinced me it was worth the money. Why? Because I can work/do something productive in comfort for the hour or so it takes to finish my car. The "old" place has a few chairs, an old TV (that you can't get away from if you want to think), no desk, no internet connection, etc. The dealership makes the hour I wait much, much more productive. And is my time worth more than $20 an hour? You bet!

As I've posted before, time is the most important asset in the world and it's easily worth more than money. So I'm willing to pay $20 more to get an hour's worth of productive time. Besides, it doesn't really cost me $20 more since my "cost" of that $20 is really only $11.20 because of the way I use my credit card rebates.

How about you? Is there anything you pay more for in order to save yourself time?

FMF recommends Emigrant Direct.

Money, Happiness And The Pursuit Of Both

On Monday I noted that money doesn't make people happy but that I felt wealthier people were happier. Here's a piece from Forbes that explores the relationship between money and happiness and ends with the following conclusion:

Money doesn't really make us very happy. Not only do we want what we don't have, we really don't know what we want, and we think the things that we want will make us happy, which they tend not to do.

I guess that clears things up, right?

Seriously, I think they are right. Money doesn't make us happy. It doesn't hurt though, and can remove a lot of the frustrations in life that do make us unhappy.

Here's another thought:

Which is somewhat along the lines of what another wonk suggests, that the country is in the grips of "luxury fever." That is, families with annual incomes of $50,000 try to emulate the consumption of those with $70,000, who in turn try to emulate those with $140,000, ad infinitum.

Simply put, when we see something we like that someone else has, we want it, too.

This is similar to the dynamic we discussed in my post titled Which do You Prefer: Making More Money or Making Less but Being Paid More than Others? You may be happy with what you have, but when you see someone else with more, you want it too (and can become unhappy as a result).

In the end, they wrap up with the same question they started out by answering...and come to the same conclusion:

And yet, does all of this spending make us happy?

Researchers from the University of Illinois and the University of Pennsylvania proclaim with totemic authority that, in a 1985 survey, respondents from the Forbes list of the 400 richest Americans and the Maasai of East Africa were almost equally satisfied and ranked relatively high in well-being. The Maasai are a traditional herding people who have no electricity or running water and live in huts made of dung.

Money certainly brings on its own sets of issues -- especially serious money like that managed by the Forbes 400.

What do you think? How is money related to happiness?

How Your IQ Impacts Your Wealth and Health

Here's some good news for all you smarties out there: smart people actually live longer! Here's the summary from this MSN article:

While it's true that no one yet has figured out how to beat the Grim Reaper at his game, smart people appear to be better at holding him off longer.

Now many people may simply think that smart people are richer and because they are richer, they have better medical care, more access to preventative healthcare and drugs, eat better, etc. and that's what helps them live longer. Well, the article addresses that issue and makes the following comment:

People who track health statistics have made the claim that unequal access to health services by rich people and poor people makes all the difference. But if this were the case, then the gap should have decreased in England when the National Health Service was introduced. But this didn't come to pass. Nor have employer insurance, Medicare, and Medicaid decreased that gap in the United States.

Finally, after a LOT of back and forth, they come to their main conclusion:

The same smarts that help people attain high-status, high-pay jobs in the first place are also the tools that help people avoid making poor, life-shortening decisions. It's dumb to smoke, or to become obese, or to neglect to exercise, for example. High-status, wealthy people are less likely to do these things--possibly because they're smart enough to predict the future consequences, or because higher self-esteem gives them a greater incentive to invest in their health.

So while it's true that having a high IQ makes you more likely to have wealth and a higher-social-status job, it's making smart and healthy decisions--and not simply the status and savings--that help a person live longer.

Some interesting thoughts/discussions around these topics the past couple of days. If you're interested in this subject, read the full article -- it's fascinating. And you may want to read my post from yesterday titled Why the Rich Live Longer. It doesn't contain "the answer" to any of these questions, but it does add to the discussion.

In the end, the takeaway is that there's a connection between intelligence, wealth, and longer life. It seems that it's likely that one (or two) of these leads to the others, but we can't be sure. However, I'm trying to play it safe. I plan to grow my net worth and keep my mind sharp -- and hopefully that will lead to a longer, more enjoyable life. ;-)

Money Doesn't Make People Happy

Can money buy happiness? Well, no one knows. That's the point of this piece from Forbes. The general conclusion is that money doesn't make people happy, but people with more money are happier than those who have less. Sound confusing? Here are but a few quotes from the piece that may straighten things out a bit:

Once a country gets fairly rich (though much poorer than the United States), further economic growth does not seem to make its citizens any happier.

So, money does not buy happiness. Or does it? "In every society, at any point in time, richer people are happier," points out Will Wilkinson, a policy analyst at the Cato Institute in Washington D.C., who runs a blog on happiness research and public policy. "But that in itself doesn't tell you much about the relationship between money and happiness."

Richer people, after all, tend to have high-status jobs. They tend to have more control over their lives at work--why pay someone six figures if you're not going to ask her to use her own judgment? They also have higher expectations and will be comparing themselves to wealthier people. It's hard to say what is really driving the results: money, status or expectations.

Perhaps each society's richer people are also happier because happiness comes not from absolute wealth but from relative wealth--recall H.L. Mencken's quip that "a wealthy man is one who earns $100 a year more than his wife's sister's husband." A more skeptical view is that while it means something to compare my happiness with that of the guy asking me for change on the street, it means nothing to compare my feelings today to those of my grandfather in 1950--or those of a Portuguese shopkeeper or a Japanese salaryman.

I think wealthier people are happier in general, but it's not because they have more money. In fact, I hypothesize that it's the opposite casual relationship -- that happier people become wealthier than unhappy people. Why? Happier people have a better outlook on life, they think the impossible is possible, they dream, they work well with others, and on and on. Let's face it, happier people simply have more of the qualities that our society values -- and in a free-market economy a monetary value is placed on these qualities -- a value that's higher than that of people who do not possess these qualities. Hence, happy people make more and are wealthier.

What do you think? Does this make sense to you or am I all wet? Let the world know what you think in the comments below.

How to Keep Your Brain Fit

I've written before about how your mind is one thing that's more important than money and covered the benefits of exercising your mind regularly. This piece from Yahoo lists several ways you can keep your brain fit. They start with the reason why exercising your mind is a good idea:

The impact of age-related memory problems can often be reduced. The saying “use it or lose it” applies to your memory. Your best defense against a memory problem is to stay healthy and fit.

The piece then gives several tips for keeping your brain fit including:

• Eat a balanced diet. 
• Drink plenty of water.
• Get plenty of rest.
• Do not smoke or use other tobacco products.
• Exercise regularly. 
• Reduce your stress.
• Socialize with family and friends.
• Try to learn new things.
• Play stimulating mind games, such as Scrabble, or do a crossword puzzle or jumble.
• Limit your alcohol intake and do not use "street drugs," such as cocaine, crack, or amphetamines.
• Decrease your use of nonprescription medications.
• Keep your blood pressure in the 130/85 millimeters of mercury (mm Hg) range.

If you lose your mind, then the other parts of your life have little, if any, meaning. And while it's unlikely that many of us will lose our minds completely, I don't want to lose anything. As such, I'm taking these suggestions seriously and applying them to my life. I'd suggest you do the same. And if there are too many here for you to add to your life, take them in stages, adding one every other moth or so. If you do that, you'll be a completely new person in a year and your brain will certainly thank you.

How to Keep Your Brain Fit

I've written before about how your mind is one thing that's more important than money and covered the benefits of exercising your mind regularly. This piece from Yahoo lists several ways you can keep your brain fit. They start with the reason why exercising your mind is a good idea:

The impact of age-related memory problems can often be reduced. The saying “use it or lose it” applies to your memory. Your best defense against a memory problem is to stay healthy and fit.

The piece then gives several tips for keeping your brain fit including:

• Eat a balanced diet. 
• Drink plenty of water.
• Get plenty of rest.
• Do not smoke or use other tobacco products.
• Exercise regularly. 
• Reduce your stress.
• Socialize with family and friends.
• Try to learn new things.
• Play stimulating mind games, such as Scrabble, or do a crossword puzzle or jumble.
• Limit your alcohol intake and do not use "street drugs," such as cocaine, crack, or amphetamines.
• Decrease your use of nonprescription medications.
• Keep your blood pressure in the 130/85 millimeters of mercury (mm Hg) range.

If you lose your mind, then the other parts of your life have little, if any, meaning. And while it's unlikely that many of us will lose our minds completely, I don't want to lose anything. As such, I'm taking these suggestions seriously and applying them to my life. I'd suggest you do the same. And if there are too many here for you to add to your life, take them in stages, adding one every other moth or so. If you do that, you'll be a completely new person in a year and your brain will certainly thank you.

The Dot-Com Billionaire: Mark Cuban on the Value of Time

We've talked before how time is more important than money and the point was reinforced to me today when I saw this quote from billionaire Mark Cuban on the value of time:

To me, money is...a way to buy the most valuable asset in the world: time.

Easy for him to say, huh? ;-)

Seriously, though, time is more valuable. You can always get more money, but once time goes by, it's gone forever.

AARP 'Report Card' Shows Life for Those 50+ Needs Improvement

Here's a piece from Market Watch that says that life is getting worse in some areas for older Americans. Key points:

Yes, older Americans are better off than they where a decade ago, says AARP. But over the last three years the economic, health and social well-being of the 50+ crowd has gone from bad to worse, despite a recovery in the stock market in 2004 and an increase in the value of real estate, according to the group's third annual "report card" on conditions for older Americans.

For example, the percent reporting their health as excellent or very good declined, as did drug coverage for Medicare beneficiaries, the percent able to afford health care, the percent who were not obese and not overweight and (perhaps related) the percent who engaged in physical activity.

But the real problem is the adverse effect health-care expenses have on family income. Median family income adjusted for inflation fell to $35,199 in 2004 from $35,746 in 2003.

Unfortunately, Rother said there's not much families or individuals can do to reduce the impact of rising health-care costs on their budgets. Sure, individuals can take better care of themselves, he said. Obesity and smoking are among the obvious things that could be addressed.

These issues are going to become bigger and bigger over the next several years as more and more people get older. I'm still putting together my thoughts on how to deal with retirement/the rising cost of medical care, but here's my thinking as of now:

There's little more valuable than your health, and you have to take steps now that can impact your quality of life and medical costs in the future. For instance, you MUST stop smoking and should start some sort of regular exercise program -- both for your body and your mind. I work out four times a week (treadmill/elliptical machine in the winter, cycling in the summer) and play chess to keep my mind sharp. (relatively, sharp, that is.) ;-) I can still do better in many ways -- especially in what I eat.

What ideas do you have? I'm sure there are many of you out there who have good comments on this issue. Please share them with the rest of us.

Don't Just Quit Smoking, Take the Next Step

We've talked before about how your health is more important than money. Well one thing that can significantly harm your health as well as your net worth is SMOKING. (If you don't believe me on the money issue see Stop Smoking -- It's Killing Your Finances, Comments: Stop Smoking, and Stop Smoking, It's Killing the Nation's Finances). So consider this my public service announcement on how bad smoking is for you courtesy of ARA Content: 

Sharon O'Hara, 66, of Silverdale, Wash., was just 17 when she picked up her first cigarette. "Like a lot of people who started smoking back then, I did it because it was the cool, chic thing to do," she says.

Humphrey Bogart and Lana Turner did it. So did a lot of people's parents, teachers, neighbors and even doctors. According to statistics gathered by the National Institutes of Health, in 1955, by the time O'Hara picked up the habit, 56 percent of American men and 28 percent of American women were smoking.

"Obviously the numbers were so high because no one knew one day there would be serious health ramifications," says O'Hara, who today is on a mission to get the word out about the dangers of smoking. "My bad habit nearly killed me."

In 1997, shortly after returning home from a trip to Norway, she became so short of breath she was unable to stand and had to crawl across the floor to get the food to feed her dogs. Her son rushed her to the hospital. "I decided during that four-day period in the hospital, I would never pick up a cigarette again. And I haven't," she says.

O'Hara had been diagnosed with Chronic Obstructive Pulmonary Disease (COPD) -- a term referring to a broad group of lung diseases that leave people hungry for air -- a couple of years prior to that episode. Her doctor had advised her to quit smoking, "But I was addicted and just wouldn't listen," she says. It wasn't until the day she collapsed gasping for air that the light bulb finally turned on.

Leading Killer

Her affliction, COPD, is the fourth leading cause of death in the United States, claiming the lives of 120,000 people a year in the U.S. It is estimated that currently 10.7 million people have been diagnosed with COPD. However, up to 24 million Americans have evidence of impaired lung function, indicating under-diagnosis of this disease. COPD is a preventable and treatable disease.

"Many people choose to ignore their symptoms and thus are not reflected in the statistics," says Dr. Norman Edelman, the American Lung Association's chief medical officer.

Source for Help

To help raise awareness about the disease, the American Lung Association has teamed up with ALTANA Pharma US to launch a nationwide educational campaign called "Hungry For Air: Breathing Better Together." Through the Web site www.lungusa.org, people can easily download four free booklets about the disease and explore inspirational stories about survivors and caregivers. The free downloads will be located in the American Lung Association's "COPD Center."

Sharon O'Hara's story is among those featured on the site. "Probably the only reason I coped so well as a smoker and ignored my failing ability to breathe was because I was physically fit," she says. Despite suffering occasional bouts with shortness of breath, O'Hara climbed mountains, rode horses and spent all of her spare time working hard to restore a neglected estate she and her husband had bought for their retirement.

But as her condition deteriorated, she reached the point where she couldn't even lift a shovel and knew things needed to change. "We sold the estate and moved closer to town," she says.

Shortly after moving, while surfing on the Internet, O'Hara came across two Web sites she says turned her life around. "Finding EFFORTS (a COPD support group) and the American Lung Association of Washington online changed my life," she says. "I learned that COPD is not a death sentence. It's an opportunity, a challenge to regain quality of life. The more fit we become, the better we can breathe."

O'Hara now exercises every day, and she's currently training for a cross country bike ride sponsored by the American Lung Association to raise awareness about the disease. She also speaks at seminars aimed at COPD survivors and their families.

"People should not have to go through what I've gone through. If I knew then what I know now about the dangers of smoking, I never would have started," says O'Hara.

Are You a Candidate?

"The first step is to be diagnosed," points out Dr. Edelman. He recommends that anyone who has ever smoked get a spirometry (lung function) test. COPD can also be hereditary, or occur due to occupational hazards and pollution. If you answer yes to any of these questions, Dr. Edelman recommends you, too, see a doctor.

• Do you frequently experience a deep, chronic cough?
• When completing routine activities, such as climbing a flight of stairs, are you short of breath?
• Do you live in a heavy smog/high-ozone area?
• Are you exposed to air pollution at work?
• In cold weather, does your chest get tight or do you find it difficult to breathe?

For access to support tools for people who want to quit smoking, or to read inspiration stories about COPD survivors, log on to www.lungusa.org and click on the "COPD Center."

My parents just quit smoking a couple months ago after inhaling deadly fumes for 40 years or so. It took my mom having breast cancer twice to shock them into reality. If you're a smoker or know someone who is, please try and quit. Your lungs, your wallet, and the people who love you will thank you for it.

More Important than Money: Your Mind

I've already talked about how your health is more important than any amount of money you have. This article reiterates that thought and adds to it as it focuses on the importance of your mind and what you can do to make sure it stays healthy. The key points:

While the grownup brain is less "plastic" than the brains of children, it turns out to be much more supple and improvable than originally believed -- that's a key insight neuroscientists have gained over the last 15 years. As Boomers grasp the importance of this research, and as many see their own parents ravaged by Alzheimer's, they'll begin treating their brains much as they treat their bodies -- with a steady regimen of exercise and workouts.

University of California-San Francisco neuroscientist Michael Mezerich calls it a "new brain-fitness culture." What aerobics was to the 1980s, brain fitness will be to the next decade. Expect a steady stream of books, workshops, even "gyms" designed to keep aging Boomer brains in top condition.

Laughter is no laughing matter. There's ample evidence that laughing is good for body and mind. And thanks to an inspired Indian physician named Madan Kataria, individuals and organizations across the world have formed thousands of laughter clubs to practice what Kataria calls "laughter yoga."

I remember reading about the issue of brain fitness a few years ago. The article said that people who regularly exercised their minds by playing cards, doing crossword puzzles, and the like had a substantially lower rate of Alzheimer's disease. I decided to be proactive in my own life in this area and took up the game of chess. It's not only fun and a mental challenge, but because it's a game, it's easy to stick with and play over and over again. I've been playing for 3-4 years now.

I encourage you to consider this issue yourself and take the appropriate action. After all, all the money in the world is of no use if your mind goes.