Want to be Rich?

Do you want to be rich? According to some research by a Prof Jay Zagorsky from Ohio State University, these are the things you need to do:

1. Quit smoking:

"Regression results show lower net worth is associated with smoking. ...heavy
smokers are associated with a reduction in net worth of over $8300 while light
smokers are $2000 poorer compared to non-smokers. Beyond this reduction, each
adult year of smoking is associated with a decrease in net worth of $410 or
almost 4%."

2. Reduce your weight:

"..the results showed that a one unit increase in a young person's BMI was
associated with a $1,300 or 8 percent reduction in wealth."

But of course from our economics lesson we are taught that:

"The neoclassical theory of distribution teaches us that a person's earnings
depend on his or her productivity. But earnings are not the same as wealth. The
accumulation of wealth is mostly about the ability to exert self-control."

Quotation from Prof Mankiw (yes. that Macroeconomics professor whose textbook we use). Note his last sentence! This implies that smokers and 'big and heavy' people (don't want to use the word 'obese' or 'fat' for sensitivity) are those who do not have the ability to control themselves. Well the economics behind this is quite simple. It's all about savings! Smokers spend (what they could have save and/or invest) on ciggies while the second group spends on (too much) fatty, yummy food.

Enough said. Salaam!

ps. I'm officially a year older today...hehee