Michael Mischel conducted experiment in 1960′s with a group of children 5 – 8 years old to explain the how important self control to success. He tested 10 – 15 children one after the other. The test began by offering one cake with one condition i.e. later they may get another cake if they wait till he return back. He left for approximately 15 minutes. In the gap many children played with cake, few people ate it before he came.

Fourteen years later, the simple study demonstrated the significant differences between the two groups of children. The children who delayed gratification and waited until Michael Mischel return were more positive, persistent when faced with life difficulties, more self motivated and were able to delay immediate gratification in order to pursue their longer term goals.

The children who chose 1 cake didn’t fare as well. They were more indecisive, mistrustful of others, less self confident and often more troubled in general. They were more obviously unable to delay immediate gratification.

Comparing the SAT scores of the 1 cake students to the 2 cake students showed that students that chose 1 cake scored an average of 210 points lower than the 2 cake students. Why? 2 cake students are able to sacrifice immediate activity in the interest of more focused study time for a longer term benefit. The one cake students were far more impulsive resulting in higher distraction and less focus on their school work.

This article explains the two important traits delay gratification and impulse control. These traits are very important for success. People who invest in delayed gratification associate hard work with high rewards. In simple words, delayed gratification is the highway to real success.

Note: In the original list marshmallows were used. For easy understanding for Indian audiences here cake is taken instead of marshmallow.

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People typically become house poor because they buy more house than they can afford, but there are other ways that people can become house poor as well. For example, some people will become house poor after the birth of a child, when one spouse decides to stay at home with the new addition, rather than going back to work.

“House poor” is the term for those who spend too much on house payments and maintenance. It’s a common affliction. Sufferers starve their retirement accounts and miss pleasures such as dining out and taking nice vacations. Being house poor can even fracture a marriage.

In homeownership, as in all things, moderation is best, says Tahira Hira, professor of personal finance and consumer economics at Iowa State University.

Definitions

• The condition of having very little cash because nearly all of one’s net worth is tied up in one’s house. (Investor words)
• People who are short on cash because most of their money is tied up in their homes are “house poor”. (Dictionary by farlex)

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What is Rat Race?
Living Below Means

Most of the parents have a preconceived notion that most expensive/ luxurious schools will teach good soft skills to their children and hence indulge in paying huge fees to these schools. It has been observed that if the parents are with strong values, integrity and positive attitude, they can inculcate in their children a set of solid values like fairness, honesty, discipline, justice, integrity etc. right from their childhood. Even the school in which a person has been brought up, also influences his soft skills, if the school itself is with bad environment or bad culture, how can one expect to have good soft skills in a person who has been brought up in it.

When a person is looking for a job those with good upbringing will possess a strong set of soft skills that helps them to get selected for good jobs. Remember any thing that can be bought with money is a commodity. Sending a kid to the most expensive school is not enough.

The attitude of ‘Charity’ in the mind of a person starts from his home. Similarly, a person’s behavior and development of his soft skills starts from his home right from his childhood. How good or how bad a person’s soft skills are? mostly depends upon how well he has been brought up by his family members and the society to which he belongs.

Parents ignore the fact that it is their fundamental duty to instill a strong set of soft skills in their children right from their childhood by educating them about the acceptable attitudes and behaviors to be followed in the society. Thus, parents have to realize that proper upbringing helps in building the right foundation for their children in developing good soft skills.

So, good family upbringing plays a major role in helping the development of good soft skills and teaching to act appropriately in the society. Probably, the strongest influence in a person’s life and on his soft skills is the family he grew up in. The birth order, the personality of parents, treatment from siblings, the socioeconomic status of family, and education will shape the soft skills of a person.

If the person had no good relations in between and among the siblings of his family, he automatically carries the same to outside the home, may be to educational places and work places etc., which leads to poor soft skills. On the other hand, when a person has good communication and good relations in and among the family members or the siblings, then he tends to practice good communication skills, a positive attitude, and good negotiation skills etc., which are a part of soft skills.

In some families, parents never cared for their children and they grew up not knowing much about the outside world. As a result, the kids do not even know how to behave in the society and lack in their soft skills. On the other hand, when the parents care about their children and teach them how to behave in the society, how to talk with the people, how to understand the people, and how to tackle the hard situations etc., it has a positive impact on the kids. The children will develop a positive attitude, a tendency of facing challenges and builds empathy, which slowly develops a set of good soft skills for the child as he grows up in his life.

It has been also said that, confident and skillful parents adopting a ‘tough love’ approach to parenting in the upbringing of a child by balancing the affection and discipline seems to be most effective in terms of generating the characteristics such as purpose, self-regulation and empathy, which are considered to be good soft skills for a person. Parents cannot ignore their responsibility of giving a good upbringing to their kids. So, every parent must not forget that it is their duty to bring up their children not only giving good education but also good kind of attitude and culture.

When a child has a good family upbringing along with a good school education, that child is likely to do very well in life. Children who have been molded well by their parents & teachers, whose rational mind has been strengthened and good character has been build, can look forward to a bright career and contribute significantly to their employers success. Such individuals are valued greatly by employers.

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Definitions

• Fierce competition to maintain or improve one’s position in the workplace or social life. For example, You may not realize what a rat race it is to get research grants. This term presumably alludes to the rat’s desperate struggle for survival.(The American Heritage® Dictionary of Idioms by Christine Ammer)
• any exhausting, unremitting, and usually competitive activity or routine, esp. a pressured urban working life spent trying to get ahead with little time left for leisure, contemplation, etc. (Random House dictionary)
• a mad scramble or intense competitive struggle, as in the business world (Webster).

Ratrace conjures up the image of the futile efforts of a lab rat trying to escape whilst running around a maze or in a wheel. In an analogy to the modern city, many rats in a single maze expend a lot of effort running around, but ultimately achieve nothing (meaningful) either collectively or individually.

Shows succumbing to the present and not keeping the big picture in mind. It shows a lack of wisdom and a prioritization of what is essential. It also shows being afraid of being functional. You will lose tomorrow to look cool and be with the crowd today

Like a child on a first trip to Disneyland- many people are getting beserk because of lack of prioritization. Sucumbing to pressures from colleagues and extended family members – they get addicted to perpetually pursuing the ‘cool things’ to ‘appear’ good to others.

This could include many things:

1. Joining a course because everyone is doing that or worse still you may not be considered intelligent so you join this course instead of what you really like.
2. Buying a bigger house than required or buying in a certain area – otherwise you will feel left out. People in the rat race are extremely concerned about being left out.
3. You buy the more expensive shoe or jeans because you will not feel left out. Even though the cheaper shoe or jeans fits you well and is more functional
4. You buy the less functional motorcycle or car because it has a cool image. While the more practical motorcycle or car will mean you stand out from others.

Sadhu’s go away from people to remote hills to get wisdom. While people in the rat race get extremely anxious on being left out on anything. They just want to be in the ‘in circle’.

“No matter what you do in the rat race, success is not guaranteed, but if you do nothing failure is” .Paul Ulasien– Author of : The Corporate Rat Race: The Rats Are Winning

The trouble with the rat race is that even if you win, you’re still a rat.

To be out of the rat race requires strong convictions and a belief in tomorrow. Otherwise, the pressure to conform to the majority way of thinking is very high.

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House Poor
Living Below Means

Living below your means, first saving some portion of your income and then accommodating your lifestyle with the rest of your income. Most people mistakenly believe they understand what it is to live below their means.

Living below means does not mean to abstain from all good things in life

The important thing is you still enjoy life, but in a different way i.e. a more responsible way that gives deep internal self-fulfillment. It just means to ensure you lead a life style that is significantly below your current income level.

Expensive Lifestyle is not same as being wealthy

Many people falsely equate expensive life style with being rich. While being rich or wealthy is actually about the number of years you can live without earning any money. Contrary to what people may think, this way of living gives great internal comfort and satisfaction. So, for a given saving, the lower your life style the more wealthy you are.

Let us say two people A and B have same savings(wealth) of about 5 lakhs. Both are in same job, equally smart and will get same future income because their job performance is same. ‘A’ has a life style that involves spending 1 lakh per year. ‘B’ has more impressive life style and spends about 2.5 lakhs per year. Because ‘A’ has a more frugal life style, he can live for 5 years without earning a single paise. While ‘B’ can only live for 2 years because his life style is more expensive. So, ‘A’ is more rich than ‘B’. Plus, because ‘A’ has more surplus he can do more investments. If done well that can further increase the wealth of ‘A’ from ‘B’.

Most people save little or no money – even if their salaries increase rapidly or have good salaries

Most of people spend whatever they receive as income. By the end of month nothing saved, again they start spending when they receive income. In fact, many may even borrow money or use the credit card for this month’s expense that will be paid from future income. Some behave like this with low income and some do with very high income.

Stop worrying about impressing others

Live a comfortable life. Don’t get sucked into the game of impressing others. Don’t chase material things and fool your self into thinking you will be happy by having those material possessions. You may feel good for a few hours,a day or, few weeks. But your savings are permanently diminished.

You can spend a lot of money on a car and house that will impress your neighbors and friends, but you’ve actually made yourself less secure and weaker financially. All those trappings that are intended to make you feel wealthy are actually making you poor.

• That fancy car will lose value every year.
• That house payment is very likely paying for space you don’t need.

Why pretend to be rich, when you can just become rich instead? Stop competing with your neighbors & friends on material possessions. This competition for material possessions prevents you from saving more for a better financial future.

The key to realizing this idea is to understand that real status in life is not about projecting an unreal financial image. Being financially secure is the ultimate status symbol.
The first Scientific research done on the millionaires in the US by Dr. Thomas J. Stanley of the University of Georgia. The study sponsored by Rolex found that real millionaires lived much below their means, while fake millionaires (having expensive life style) had expensive life style but very little wealth.

If you are looking to become wealthy or get out of debt, it is essential to live below your means. That is a suggestion that has many meanings.

Have Individuality – if you want to be most popular it will become difficult to be Rich

Don’t get into blind competition with others. Don’t imitate someones purchase without evaluating the merits rationally.

It is not easy to be rational. There is a self serving bias, once your emotions likes to possess some item your emotions will get your brain to justify it logically. Though it is not easy, it is very much possible to be rational.

Financial well being is important for overall well being

Making a decision to live below means is important decision that leads to a successful and financially secure future. This could also give much mental peace during troubled financial times like recession, lay-offs, and at work when tensions are high.

People under-estimate the impact of financial vulnerability to compound their troubles from non- financial matters. When you are not financially secure, you really get very desperate because your ability to take failure well is just not there. When you are financially well organized, it gives great internal peace, even when others ridicule you.

Frugal lifestyle is essential to accumulate wealth

This life style is about making a deliberate choice to moderate your spending habits. It is not about stopping spending, but about spending a bit less than you can afford. Live a simple life, save a part of your income and this will reduce stress level and make your life closer to heaven.

Becoming wealthy is not earning more money, but becoming frugal and spending less than you earn. Need to have internal comfort with your life style choice. Wealthy people are good at aggressively saving money from their current income. This is one characteristic that essentially separates the wealthy from the poor.

Article Summary

• Moderate indulgence instead of total avoiding any spending.
• Expensive lifestyle is not the same as being wealthy.
• Have Individuality – if you want to most popular it will become difficult to be Rich.
• Helps avoid fad purchases – you have your individuality and choose to buy something based on your ‘actual need’.
• Financial vulnerability can compound your problems with non-financial matters as you have very little ability to handle even short-term financial failure.
• Frugal lifestyle is essential for accumulating wealth.
• People who get rich are good at aggressively saving money.

* Original quote by Benjamin Franklin has been modified but the essence of the message is from his quote
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Americans are very passionate about riding bikes and traveling in autos. Americans believe it to be adventurous and thrilling. As the traffic in U.S is very controlled, there are limited number of bikes and no auto rickshaws. Due to this small number, people in America are more attracted to motorbikes and autorickshaws.

Very few people in America own bikes as it is not a functional item. People generally ride for pleasure. Moreover, motorbikes in U.S. are big, powerful, and expensive. Plus, bike accidents are almost always fatal and more probable since it is much less safe than car. The typical average speeds of about 100 kmph on most roads makes bike riding risky for the driver.

Apart from riding motorbikes, Americans are crazy to travel in autorickshaws. An autorickshaw ride is equivalent to a helicopter ride for them. Auto rickshaws became very famous after they were portrayed in a James Bond Movie, Octopussy. The star Roger Moore rides in an auto rickshaw also called as Tuk-Tuk during a chase. In a Visa card commercial, James Bond, Pierce Brosnan rides in a Tuk-Tuk.

Many five star hotels in India have a different entry for the customers coming in autos or on motorbikes. Similar to cleaning staff, who are required to use utility lift rather than the main lift. But this will not happen in U.S.

But, it is totally a different scenario in India. Motorbikes are inexpensive and easily affordable. Many Indians own bikes but not cars. They also travel in autos regularly but may not be able to afford taxis. This makes the difference. Indians like to drive a car. Bikes or autos have less value compared to cars.

Perceptions among the people are different. The thing that is already with you is most likely to be valued less than the one you don’t have. As it is said that grass always looks more greener on other side. People generally are interested about the things, which are away from them. That is why it is said that Human Nature is Funny.

When it comes to comparing the value of money in terms of buying products or goods in two different countries, exchange rate often comes to our mind. Exchange rates are generally used to the convert the current values of currency in one country to another. Exchange rates ignore the domestic economic sectors where prices are fixed without any consultation with other countries. Therefore, exchange rate does not reveal the real volume of output of the goods or services that can be bought.

Therefore to measure the differences between the real prices of goods and services across different coun¬tries, we need something to measure them on a common scale. This is where Purchasing Power Parity (PPP) comes into picture. Purchasing Power Parity converts local currencies to a common currency and compares the buying power of different currencies. The purchasing power parity is a method of measuring the effective purchasing power of different countries’ currencies over the same types of goods and services. It also states that, in ideally efficient markets, identical goods should have similar price. While comparing the Purchasing Power Parities of different countries, a standard single currency should be taken such as a US dollar.

But goods and services have widely varying prices across countries when converted to a common currency. You can find more differences in goods or services, which are not traded with other countries on international platform such as products that are sold locally, costs of labour, housing, construction, and healthcare services. That is the reason we get more number of haircuts in India compared to US with the same amount of money. This also one of the reasons many foreign companies to set up their offices and operate from India. PPP is the main thing that is making the offshoring possible.

PPP is the best method to compare the standards of living in different countries. According to The United Nations Statistics Division (UNSD), the purchasing power parity conversion factor of India compared to US dollar is 16.537 in 2007. Purchasing power parity conversion factor is defined as the required number of units of a country’s currency to buy the same amount of goods and services in their local market as one U.S. dollar would buy in the United States of America. In other words, when a person spends Rs.45 in US to buy a product in his country, you can get the same product in India at Rs.16.50 only. This means products in India are almost three times cheaper than in the US.

According to 2005 International Comparison Program by World Bank, individual household con¬sumption expenditure was $1,183 in India where as the same thing in US was about $29,368. Expenditure on household food consumption was $317 in India, for the same purpose they spent $1,998 in US. Household expenditure on health was $485 in India and it was $5,853 in US.

The PPP’s law of one price states that all the prices of goods or services should equalize in the absence of local taxes, distributors margin and shipping charges. But the price differences are less for goods that are widely traded in international markets like electronic goods, machinery and equipment. The theory of PPP is not working here with countries like India. This is the reason some of the electronic goods and high-end cars in India are expensive than in US.

There are some differences in the prices of goods and services between India and US. Local goods, labour, food, housing, healthcare etc. are cheap in India but some items like electronic goods, and high-end cars are overpriced. Therefore be aware of things that are expensive and make sensible purchases.

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Brahmacharya (celibate)

The first stage is “Brahmacharya” includes a student and generally lasts for 25 years of age from birth. The responsibility of a student is to study. For a Brahmachari, celibacy (maintaining singleness) should be strength, discipline should be the standard, service to Guru should be duty and concentration in studies should be the profession. The young male leaves home and stays with teacher and gains both spiritual and practical knowledge. He is trained for his future profession, in addition for his family, social and religious life ahead.

Grihastaashrama (House holder)

The second stage is “Grihasta” which implies a House-holder generally between 25 and 50 years of age. This stage begins when a man gets married, and takes up the responsibility of earning for sustenance and supports his family. At this stage, the activity of wealth is very essential. The Grihasta earns his livelihood by doing work that matches his group, raising children, and performs religious or spiritual practices to help others. Usually people of other three stages heavily depend on the Grihasta for support and maintenance required to perform their respective duties. In real life, people love this ashrama, so Grihastha stage continues for whole life.

Vanaprasta ashrama ( the anchorite)

Vanaprasta is the third stage of senior advisor generally between 50 and 72 years of age. This stage begins when his responsibility as a householder ends, become a grandfather, his children become adults, and have well settled lives of their own. At this age, he should abandon all physical, material and sexual pleasures. He should retire from his social and professional life and should spend his time in prayers. He should maintain little contact with the family. This kind of life is actually very harsh for an aged person. Today, this stage is almost extinct.

Sannyasa ashrama ( the renounced)

Sannyasi is the fourth stage meaning Ascetic or Solitaire life, indicating complete detachment from materialistic pleasures including the essential requirements of living. This is the last stage, generally after 72 years of age. At this stage, a man should be completely devoted to God. He has no home, no attachment, and has abandoned all desires, fears and ambitions, duties and responsibilities. He is basically combined with God, all his relationships are broken, and his sole tries to attain moksha. No one is promoted to become a ‘Sannyasi’ without going through one’s natural feelings of the three previous Ashramas. Person who escapes from marriage (Grihastashrama) is considered as a coward quitting the battle field.

The focus of brahmachari is on healthy, positive training and discipline, learning about spiritual aspects, community, and family life. The focus of Grihasta is on giving, living, learning, and to remain loyal in family and community. The focus of vanaprasta is mainly on inner spiritual methods of meditation, contemplation, and prayer. Sannayasi will not have political, professional, or social engagements and becomes an elder teacher of spiritual knowledge. The first stage is a preparation for life whereas the last stage is a preparation for death. Although these stages are mainly designed for the male, females also have an important role to play in each one of them.

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LCD TV:
LCD (Liquid Crystal Display) televisions are thinner and lighter and provide much sharper and clearer picture than CRTs of similar size. They are ideally used for cell phone displays, computer monitors and to view still images.

• LCD TVs have a flat screen so there will be no picture distortion and don’t have screen “burn in” like curved tube TVs.
• In general, LCD viewing angle is 175 degrees. The picture can be viewed 87 degrees from each side.
• LCD TVs are very economical to use and screens less than 35 are fairly inexpensive.
• LCD TVs are backlit and blocks outside light. So, they are suitable for natural lighting situations.
• Most LCD TVs have a half life (50% of original brightness) span of over 30,000 hours (16 years of viewing at 6 hours per day).
• LCD sizes generally range from 13 to 65 but some manufacturer will offer up to 100 sizes.

Plasma TV:
A Plasma Display Panel (PDP) is a flat panel display used in large TV displays. They have better and accurate color generation than LCDs, and with far display, wider viewing angles, and do not experience degradation at high angles compared to LCD. Plasma displays are ideal for viewing motion video in large displays.

• Plasma screen sizes generally ranges from 32 to 84 but some offer screen sizes up to 100.
• Plasma pixel, technology provides a brighter picture with more contrast between the blacks and whites than standard TV.
• In general, plasma TVs viewing angle is 160 to 180 degrees and picture can be viewed from any angle.
• On an average Plasma TVs have a half life (50% of brightness) of 50,000 to 70,000 hours (20 years of viewing 6 hours a day to 50,000 hours).
• Some plasma TVs are provided with upgradeable video cards that which helps to match with future technology.

HDTV:
HDTV or High-Definition Television is a digital television broadcasting system offering a higher resolution compared to regular television systems. HDTV is digitally broadcast unlike earlier analog broadcasting, because digital television (DTV) signals require reduced bandwidth because of digital video compression.

HDTV will not have standard TV problems, like low quality sharpness, troubles with brightness or contrast, spots, other visual, or audio imperfections, problems like double images (ghosting), and weak signals. HD television provides clearer pictures with excellent sound quality, a wider viewing screen and up-to-date scanning. HDTV will provide more and superior channels provided by regular satellite or cable television with theater system experience.

LED TV:
LED (Light Emitting Diode) TV is an LCD TV that uses LEDs for back lighting, instead of using the fluorescent lights (as it creates more black spots). They are ideally used for low-energy indicators, as substitutes for traditional light sources in general lighting and automotive lighting.

• LED TV will currently more than a standard LCD or plasma TV
• LED TV has got great looks and very easy to Install.
• Edge-lit LED television will consume 30-40% of less power than LCD or plasma TV. But backlit LEDs will consume more power.
• Brighter picture can be viewed with LED television compared to a standard LCD TV
• LED TV that is backlit, with local dimming and RGB LEDs, will have an enhanced picture and better contrast ratio and colour accuracy compared  to standard LCD TV.
• It has a long lasting life and also eco friendly

OLED TVs:
OLED (Organic Light Emitting Diode) TVs depend on light emitting polymer technology. Its features including,

• In OLED TVs, there is no need for backlights or extra heaters or coolers, so there is less power consumption.
• As OLED materials has the capacity to support full spectrum of visible light, so there will be higher contrast and it has high-speed refresh rates.
• OLEDs are much faster than LCDs. Fast motion and quick eye movement pictures are more realistic.
• It has larger viewing angle and for near-eye applications, it provides more pleasant viewing without distortion.
• The OLED TVs will make virtual images to look realistic and can be viewed easily for longer periods.

Before purchasing a television, know the difference between each technology and purchase the one which has features you desire and comes in your budget.

Republished with permission from Our-Opinions-Tips.com.

Infancy (Birth to eighteen months):
This stage is represents the dependence of the infant on the mother for basic nourishment. The baby sees the world through the parents. If all the needs of the infant are fulfilled at this stage, a basic knowledge of thrust and confidence is cultivated.

Early childhood (Eighteen months to 2 to 3 years):
In this stage, also parents’ remains as the main purposes of security, the baby tries to master skills like walking, talking, and feeding on their own (independently). Encouragement from the parents will induce liberty while abusing and restricting the child will create shame and doubt.

Play age or preschool (3 to 5 years):
At this stage, the child learns to take initiative and to do the things on its own. He or she imitates the adults, which can be noticed from their role-plays. The child also experiences blame due to frustration and gains basic skills and principles. Children will develop courage and independence.

School age or childhood (6 to 12 years):
A sense of enthusiasm and patience is developed due to the access and creation of new skills and knowledge. The child will be active socially (polite) and any serious problem in confidence can result in inferiority. At this stage, the child checks his or her success and worthfullness. They will know about their individuality and try to do the right things. It is the best stage for the improvement of self-confidence.

Adolescence (12 to 18 years):
At this stage, life becomes more complex as there is a struggle to find the identity and to approach social and moral issues. The identity struggle is to recognize an individuality that is independent from the family but as a part of society.

Young adult (18 to 35 years):
Affection is developed as more credit is done for building relationships, either through marriage or through friendships. If there is failure, or any failure in developing affection, then it results in isolation. The relationships are mainly with the spouse and friends.

Middle adulthood (35 to 55 years):
More importance is given to work, and the person is committed to creative and meaningful issues. Productivity, conveying cultural values, and working for the progress of society will occupy the person. The relationship is mainly with the family and workplace.

Late adulthood (55 years till death):
Happiness and comfort for a life of a well lived contributes to a sense of honor. There is a fulfilling attitude to the life and provide meaning to it. The relationship will be with the entire mankind.

Different experiences and aptitude will carry a person from one stage to another. Contradiction things like good and bad, independent and dependent, leader or follower etc. will guide the person’s life.

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