Ways to Make Saving a Habit

by Andrea Coombes

What's your excuse? When it comes to the sorry state of our finances, we've all got one.
Maybe your raise at work never materialized, or you charged that unexpected car-repair bill -- or that plasma TV -- to your credit card. Whatever the reason, for many of us, personal balance sheets could look better. Half of U.S. workers report less than $25,000 in savings.
Even if you've saved more, is it enough to sustain you through a decades-long retirement?
Sure, plenty of consumers now are easing back on spending, thanks to sticker shock at the grocery store and gas station. But soon enough retailers and restaurants will be pushing hard-to-resist "recession deals" -- will you be able to restrain yourself? And, what happens to your budget-minded ways when the economy recovers?
It's time to shake off the "consumer" mantle that politicians and economists are so happy to drape around our shoulders. Resist their calls for consumers to save the economy, and resist the advertisements enveloping us in the idea that we need more and more things.
The only thing most of us need more of is financial security. A lot more.
How to get there? Think thrift. For some, it's a familiar idea. For others, thrift implies denial and deprivation, and that makes for a tough call-to-arms.
So, how to save money without scrimping, be thrifty without feeling miserly -- and maintain those habits after our economy picks up speed?
It won't be easy. Expect discomfort, says Kathleen Gurney, a psychologist and chief executive of Financial Psychology Corp. Keep going, even when it's uncomfortable -- the rewards are worth it, and once this economic slowdown ends, you'll have financial habits in place to support you for a lifetime.

1. Spend less time feeling poor. Flipping through catalogs and going to the mall will make you feel like you need things, Ms. Gurney notes. Sure, you can afford some of that stuff, but the main message is: Most of this is out of your reach. Instead, do things that offer a sense of well-being. Invite friends over. Walk in the park.
2. Retrain your brain. Depriving ourselves of current pleasure is nigh impossible if we're not driven by a sense that the future will be more fulfilling, says Ms. Gurney. When you start to feel that "I'm deserving so I'm buying" feeling, visualize a smaller credit-card bill or higher savings-account balance.
3. Look around you. Are you happy with what your hard-earned dollars bought? If not, shift your spending to those things that bring greater long-term satisfaction, including retirement savings.
4. Choose your extravagances. Here's mine: I eat out about once a week. An extravagance I do without: Cable television.
5. Assess weaknesses. "If you were thrifty, how would you look different?" says Gary Buffone, a financial psychologist in Jacksonville, Fla. Identify what you want to change; then shoot for specific targets, such as a six-month hold on buying new tech gadgets.
6. Make trade-offs. Substitute small, free pleasures for those that cost. Have a movie night at home with friends -- you'd be surprised how many people are equally eager to cut costs.
7. Set goals. Meet weekly with family to discuss the spending plan (don't call it a budget) for the months and years ahead. This may involve tough choices, such as forsaking a family vacation. But think of the guilt-free trip you can take after saving the necessary cash. Good memories last longer, Ms. Gurney notes, when not trammeled by large credit-card bills.
8. Resist your children. They're going to find it hard to change their expectations. How can you help? Stand firm. The next time they clamor for the latest videogame, remind them of the bigger prize (that family vacation), and tell them their choices here and now are, say, a picnic or a movie rental. Offer options, but don't give in to their push for more consumer goods.
9. Enlist other people. Many people are reticent to talk about money worries, but almost everyone has them, so open up and tap your allies. Hold a contest with friends to see who can save the most in a month, or agree with your spouse to talk before spending more than $100, Mr. Buffone suggests.
10. Post it. Remind yourself by putting post-it notes on your wallet, mirror or steering wheel with the mantra of your choosing: "I want to go to Hawaii in January." "I want to pay off credit-card debt."
11. Automate it. Divert money monthly from your checking account to savings. It will force you to budget, based on what's left in your checking account.
12. Rethink rewards. What are some of your happiest memories? Those are the true rewards. Next time you're about to buy something because you deserve it, ask yourself whether there isn't something you deserve more, such as time at home cooking with your teenager, or a stroll with your husband or best friend.
"We've been conditioned to think that spending the money on clothes, at a restaurant, is going to be the reward," Ms. Gurney says. "But what is the ultimate reward that we want from working hard, in the end?"

Making money, not inheriting it, creates more financial security

by Thomas Kostigen

Most wealthy people earn their money, and because they earned it they feel more secure about keeping it. That's what a new survey reveals about wealth and values.

PNC Wealth Management conducted the survey of people with more than $500,000 of investable assets. The Wealth and Values Survey showed that 69% of "wealthy" Americans accumulated most of their money through work, business ownership or investments; 6% percent received money through inheritance; and 25% gained wealth through a combination of inheritance and earnings.
"An overwhelming number of affluent Americans earned their wealth and are more likely to feel secure during challenging economic times compared to peers who inherited their money," according to PNC.
These findings mirror most other studies of the wealthy and how they got rich. Indeed, take a look at the Forbes list of the world's richest people and you won't find many at the top spots who inherited their riches. This value set speaks volumes about making money, as well as about the prospects of losing it.
A couple of things separate the earners from the inheritors: First, earners were in control of making their money, and therefore feel more confident about preserving it or making even more. Second, earners likely took large risks to achieve wealth. As we all know, as risk increases, so does return. Accordingly, earners are likely more comfortable with the concept of risk.

Keep What You Make

Earners are more likely to be concerned about an economic recession, and more confident they can manage through a downturn. When asked about a recession, 36% of earners said it was a concern, yet 77% agreed with the statement "I feel I have a lot of control over my financial future."
Meanwhile, 27% of heirs expressed concern about recession, but 67% expressed confidence about control of their financial futures, PNC found.
Driving the point of risk tolerance home, the report says earners also have a higher risk tolerance than heirs: 39% of earners rate themselves as moderate to risky investors compared with 21% of heirs.
"There is a strong correlation between those who earned their wealth, their willingness to take risks and confidence that they can recover from a major negative financial event," says Thomas Melcher, executive vice president and managing director of Hawthorn, PNC Wealth Management's division that services ultra-wealthy clients.
"Those who inherited their wealth often view themselves as stewards for future generations," he adds. "As a result, they tend to be more conservative in their approach to investing."

Other Survey Findings Include:

Happiness is relative: Three-quarters of earners agree with the statement: "My financial success lets me feel less stress and worry," versus 50% of heirs. Meanwhile, 51% of earners agree with the statement: "As I have accumulated more money in my life I have become happier," compared to 33% of heirs.
More is not necessarily merrier: Heirs are more than twice as likely to say "Having a lot of money brings about more problems than it solves."
As luck would have it: More people who have earned their wealth (37%) agree with the statement: "The money I have made so far has come from being in the right place at the right time" compared with 25% of heirs.
Passing it on: Far more of earners agree with the statement: "Every generation should be responsible for creating its own wealth." And more earners believe that "It is more important for children to learn the value of money through hard work."
Which also seems to be a good lesson for adults.

One Minute Golf Lesson

Should I Stay Or Should I Go

Tahoe Trip

Plantar Fasciitis

Do your first few steps out of bed in the morning cause severe pain in your heel? Or does your heel hurt after jogging or playing tennis?

Most commonly, heel pain is caused by inflammation of the plantar fascia — the tissue along the bottom of your foot that connects your heel bone to your toes. The condition is called plantar fasciitis (PLAN-tur fas-e-I-tis).

Plantar fasciitis causes stabbing or burning pain that's usually worse in the morning because the fascia tightens (contracts) overnight. Once your foot limbers up, the pain of plantar fasciitis normally decreases, but it may return after long periods of standing or after getting up from a seated position.

Plantar fasciitis usually develops gradually, but it can come on suddenly and be severe. And although it can affect both feet, it more often occurs in only one foot at a time. Watch for:

• Sharp pain in the inside part of the bottom of your heel, which may feel like a knife sticking in the bottom of your foot
• Heel pain that tends to be worse with the first few steps after awakening, when climbing stairs or when standing on tiptoe
• Heel pain after long periods of standing or after getting up from a seated position
• Heel pain after, but not usually during, exercise
• Mild swelling in your heel

Conservative treatment

For most people, the condition improves within a year of beginning conservative treatment. Nonsurgical treatments that may promote healing include:

• Night splints. Your doctor may recommend wearing a splint fitted to your calf and foot while you sleep. This holds the plantar fascia and Achilles tendon in a lengthened position overnight so that they can be stretched more effectively.
• Orthotics. Your doctor may prescribe off-the-shelf or custom-fitted arch supports (orthotics) to help distribute pressure to your feet more evenly.
• Physical therapy. A physical therapist can instruct you in a series of exercises to stretch the plantar fascia and Achilles tendon and to strengthen lower leg muscles, which stabilize your ankle and heel. A therapist may also teach you to apply athletic taping to support the bottom of your foot.
  

Medications and procedures

If conservative treatment doesn't provide relief, you might consider:

• Corticosteroids. When other treatments don't work, your doctor may suggest one or two injections of corticosteroid medication into the region of the plantar fascia attachment at the heel for temporary relief. Multiple injections aren't recommended because they can weaken your plantar fascia and possibly cause it to rupture, as well as shrink the fat pad covering your heel bone. Another method for delivering corticosteroid medication is a technique known as iontophoresis (i-on-to-fuh-RE-sis), which uses gentle electric current to draw the medicine into the area of discomfort.
• Extracorporeal shock wave therapy. In this procedure, sound waves are directed at the area of heel pain to stimulate healing. It's usually used for chronic plantar fasciitis that hasn't responded to more conservative treatments. Early studies on this procedure reported positive results, but some recent studies have had limited success in treating plantar fasciitis. More research may determine if extracorporeal shock wave therapy is an effective treatment for heel pain, and if so, what kind of machine and treatment regimen seems to work best.
  Complications of this procedure may include bruising of your skin, swelling, pain, numbness or tingling, and rupture of the plantar fascia. This therapy isn't used for children, pregnant women or people with a history of bleeding problems.
• Surgery. Only a small percentage of people need surgery to detach the plantar fascia from the heel bone (plantar fasciotomy). It's generally an option only when the pain is severe and all else fails. Side effects include a weakening of the arch in your foot.

Frozen Grand Central

6 Blunders That Ruin Retirement Plans

By Katy Marquardt

Regular contributions to an IRA or 401(k) are a good start, but accumulating money is only part of the retirement-planning equation. Securing a comfortable retirement is a tricky process that requires careful planning; a few bad moves can cost you dearly in the long run. Here are six common missteps:
1. Not having a plan: A third of adults have no financial plan for retirement, according to a recent survey conducted for TD Ameritrade. Of the remainder of those surveyed, 46 percent said they have a written retirement plan, and 20 percent said they have a plan in their head. "So many people who have undersaved choose to ignore the issue rather than sit down and create a plan," says Joe Heider, president of Dawson Wealth Management in Cleveland. "It's almost like a fear of going to the doctor."
Retirement calculators are a start. Free counsel might be available through your employer's investment-advice program; otherwise, an investment adviser can help you plot your financial moves. Services range from a one-time financial checkup to a comprehensive plan that includes asset allocation and estate planning.
2. Underestimating life expectancy: Retirees are living longer these days, thanks to more healthful lifestyles, medical breakthroughs, and healthcare reforms. In 1955, Americans lived to be an average of 69.6 years old. The average life expectancy rose to 75.8 years by 1995 and to 77.9 years by 2005, according to the National Center for Health Statistics. Keep in mind that life expectancies are averages; many of today's retirees will live well into their 80s and beyond. Rosanne Grande of R. W. Rogé & Co. on New York's Long Island says her firm's plans run to age 100. "We invest for the long term, not the short term, now that people are living 30 and 40 years into retirement," Grande says.
One side note: As retirees' expectations about longevity increase, so does the role of the financial adviser. Grande is one of a growing number of registered financial gerontologists, who specialize in serving older clients.
3. Low-balling your spending: Would-be retirees tend to be too conservative when projecting their annual expenses in retirement, Heider says. "Chances are, a couple retiring in their early to mid-60s is going to spend almost as much in retirement as they did during their working career," he says. Spending in some categories, like travel, may increase. "For most people, spending on discretionary items and travel actually goes up in the early years of retirement," Heider adds.
4. Failing to plan for unexpected extras: Many people have a basic retirement plan in their head, with a general idea of their assets, monthly expenses, pension income, or Social Security income, Grande says. "But what they fail to factor in is extraordinary cash-flow needs, such as boomerang children living at home or extended care for aging parents," she says. A leaky roof or termite infestation could also put a dent in your budget. For such surprise expenses, Grande recommends building a little extra padding into your plan. Think of it as an extended emergency fund.
5. Overlooking rising healthcare costs: A 65-year-old couple retiring this year will need about $225,000 just to cover medical costs in retirement, according to Fidelity Investments. This figure, which assumes retirees don't have employer-sponsored healthcare coverage, represents a 5 percent increase over 2007 and a whopping 41 percent jump from 2002. Meanwhile, the number of large employers offering retiree health benefits is falling.
Employers are also increasingly shifting more costs to retirees through higher premium contributions and cost-sharing requirements. "It's scary, and it's very hard for most people to realize that the cost of the medical plan is going to go up 8 to 12 percent each year," says Ellen Jordan, senior vice president with Bryn Mawr Trust Wealth Management in Bryn Mawr, Pa.
6. Ignoring inflation: Don't underestimate the impact inflation will have on your retirement plan. If you're 65 today, an expense that currently costs $100 will cost $180 by the time you're 80, assuming an inflation rate of 4 percent. Plan your retirement with the assumption that the cost of living in your later years will considerably outpace that of your earlier years. Grande uses a 4 percent inflation estimate in her clients' plans.

Golf Swing

Maximize Your Long-Term Salary Growth

If you're happy with your current salary, it would be easy to just sit back and enjoy it. But if you want to make sure your earnings keep rising over the long term, you need a strategy to protect against salary plateaus and unemployment.

Experts offer the following tips for maximizing your earnings over the course of your career.
* Watch industry trends carefully.

"If your professional area is vulnerable to economic shifts, don't cling to it just because it is familiar and comfortable," said Libby Pannwitt, principal of the Work Life Design Group, in San Carlos, California. Take a class or even get an advanced degree to arm yourself with skills that are more enduring.

For example, Marianne Adoradio, a recruiter and career counselor in Silicon Valley, said she sees otherwise excellent candidates for human resources positions who don't have global experience -- something that is a requirement for more and more positions. She advises people in the field -- even if they aren't currently job-hunting -- to make sure they're working on projects with a global component. If they aren't, they need to ask their boss how they can gain this experience.

* If you reach a salary plateau, understand the reason.

In many fields, people start out their careers with a succession of rapid salary increases. These increases taper off after a time, though, unless they enter management. Some companies have career paths for non-managers with highly specialized skills, so if you're not interested in management, you may want to pursue one of those.

If the problem is that your field of expertise is no longer in as much demand as it used to be, then you may need to look at a move to a related field.

* Make yourself marketable outside your company as well as inside.

"The most successful people develop themselves to add a lot of value to any company in the industry, not just their company alone," said Steve Levin, principal of Leading Change Consulting & Coaching, in Portola Valley, California. This will give you more leverage in internal negotiations -- and more options if you decide to leave your current company.

One tip for being marketable across an industry: Try to work for "name-brand companies," Adoradio said. Recruiters often prefer candidates who have worked for industry-leading companies. Having one on your resume will help your long-term career prospects.

* Consider multiple income streams.

Some people branch out from their main job to take on consulting work or teach a course in their field. This may help advance your primary career if the work helps you stay current or showcases your expertise. If your second job is in a different field, the second income will increase your earnings and help shield you from the downturns in your main industry.

* Don't focus too narrowly on money.

"Raises and promotions are given to people who generate trust and demonstrate competence to handle more complexity," Levin said. Focus on this, and the money will likely follow.

And remember that learning new skills in a job can be just as important as the money.

"When that learning stops, when that development stops, it's time to move," said Leslie G. Griffen, managing partner of Career Management Associates, in Overland Park, Kansas.

Five Practical Moves to Help You Outrun Inflation

by Jennifer Openshaw

Rising health-care and education costs have topped the headlines for years. We're getting used to paying more at the pump. But recent figures show rising prices hitting closer to home. Higher commodity costs are driving prices for food, clothing and other basic necessities.

Sure, we've gotten our breaks. Electronics have been getting cheaper for years. The China effect has held prices steady for lots of manufactured goods, including clothing. And the housing market -- well, you could say that housing is getting cheaper, but that only helps those lucky few in the market today.

Inflation happens slowly -- an increase here, and increase there, and suddenly your finances fall behind the curve. If you spend $50,000 a year excluding housing payments, a 4% annual inflation rate suggests your expenses will rise by some $2,000.

Your income may keep up, but it's hard to count on that. I say it's time to aim high -- to figure out how to save at least $1,000 this year. Not to pay down debt, put in savings or improve our lifestyles -- but to stay ahead of the inflation monster.

Five ways to save a grand:

The following five practical suggestions can save $1,000 apiece:

1. Don't "obey your thirst." At least, not all the time. The cost of beverages, in all forms, adds up. Wine, soda, beer, even bottled water are expensive at home, not to mention at restaurants. Order drinks with free refills, or drink ice water. At home, try a filtered water pitcher or learn to drink juices, especially from concentrate. One friend of mine quaffed two 12-packs of soda a week -- $12 or so considering redemption values -- and quit when his kids started to follow suit. He switched to lime juice with great success. Without much sacrifice, I think you can save $20 a week on beverages -- at home, at restaurants, or some combination of the two. I can hardly think of an easier way to save a grand.
2. Put your cars in "econo-drive." Energy prices send no clearer message than it's time to cut back on driving. Put differently: gas prices are part of the problem, but how much we drive is usually the other problem. Learn how to combine trips and think of alternatives to trips, like putting kids on school busses instead of driving them to school (which will train them to ride the bus too). Or challenge yourself and your family to make one day a week car-free. Save 2,000 miles a year -- which isn't so much for an average family driving 25,000-30,000 miles. I think the IRS reimbursement of 50.5 cents/mile is pretty close to actual cost, so that'll save the $1,000. And your cars will last longer.
3. Thrift-shop for those threads. According to the latest Bureau of Labor Statistics inflation report, overall apparel costs rose for the first time since 1998. What do you do? Naturally, buying fewer clothes and shopping for enduring value is part of it. But consignment and thrift shops are great places to get good stuff, even fancy designer names. Lately, consignment stores have acquired new stock as people turn their extras into a little cash. It's fun. A friend of mine checks out the consignment stores when she travels -- it gives her more to choose from and something to do.
4. Do you own work. That is, the housework, indoor or outdoor. Mow your own lawn and save maybe $40 to $60 a month. It's good exercise, too. Learn to paint walls or cut hair. I mean, don't get silly -- if you can't iron a shirt, don't iron shirts. If you can't reach the drain plug, don't change your oil. But I bet you can find at least a couple of things you can do yourself, and it's a satisfying feeling.
5. Suspend services you don't need. Seems obvious, but I bet you have a few you've forgotten about or are hanging on to for obscure just-in-case reasons. Still have that old dial-up account? How about the "premium" cable or satellite package? Or those "hot" domain names they keep asking you to renew. Do you really need them still? Could that pest control be done every other month instead of monthly?
Some perspective
The point isn't to turn into a miserable miser -- the point is to prepare for the inevitable. Good financial management implies always planning ahead.
And if today's inflationary monster turns out to be more growl than bite, or if your income keeps up with inflation on its own, so much the better. You'll have $1,000 extra to spend on something you want -- or to prepare for the next financial storm. Either way, it's a good thing.

Spring cleaning for gadgets

In addition to doing those other things you ought to take care of twice a year (like changing your toothbrush and replacing your furnace air filter), spring is a good time to clean your gadgets and computers to ensure they keep running well and looking good.

It doesn't have to take hours and hours. Here are some tips for cleaning your gear efficiently.
Blast it outAnything you can physically open (primarily your desktop PCs) should be cleared of dust. Unplug your computer, remove the case, and take it outside. Get a can of compressed air and blow out all the dust bunnies, paying special attention to any fans in the case. Use quick, short bursts to avoid condensation.

Cleaning your laptop is especially important, as laptops have far less room for airflow and can overheat if they aren't kept free from dust. Use the compressed air's straw attachment to blow out the laptop's vents. Use it on your keyboard as well, to keep crumb buildup to a minimum.
Shine it upI hate it when people touch my laptop screen or TV, because of the smudges their filthy fingerprints leave. Fingerprints can quickly turn from a mere annoyance to a permanent problem if they're left there for long, as the oils have an uncanny habit of setting in and eventually becoming impossible to remove. (Nothing will ruin your HDTV experience faster than a bunch of kids' handprints overlaying your video, forever.)

I've yet to find anything better than Purosol, which I've recommended in the past, for cleaning off LCD screens, but any store-bought LCD screen cleaner should work, as long as it's alcohol-free.

Don't forget to clean your camera displays and cell phone screen, too. Those touchscreens (like the iPhone's) can get especially nasty, riding around in your pocket all day.
Repair your mediaScratched CDs and DVDs can be mended. A variety of solutions are available on the market, but the cleaning-paste-and-towel method has always provided the best results for me.

Clean the surface of your CD with dish detergent and water. If scratches remain, use a commercial scratch repair kit that includes a thick paste that you rub into the media, and a microfiber cloth to wipe it clean.

I've never tried the motorized solutions that spin your disc around electronically while cleaning it, but users have reported mixed results on how well these really work. More expensive units seem to get better reviews, but maybe readers can offer feedback on their experiences with these devices in the comments below.

Mikhail Fridman Russian US$20.8B

Fridman spent his childhood in Ukrainian city of Lvov and studied at the Moscow Institute of Steel & Alloys in 1980s.

He founded Alfa Group in 1990s with college friends (and now fellow billionaires) German Khan and Alexei Kuzmichev; it's now a diverse conglomerate with oil, retail, telecom and banking interests.

Strong Kremlin connections include a former subordinate who now serves as a political adviser to Putin.

In 2003 he merged his oil company, TNK, with British oil giant BP, an achievement, considering that six years prior the two parties were fighting, with BP protesting his methods for taking over a partly BP-owned oilfield.

Now focusing on telecom; his Altimo Group has telecom holdings in Ukraine, Turkey, Russia and Uzbekistan.

In 2007 Fridman was declared unofficial winner of a protracted and multimillion-dollar legal battle over a stake in Russia's third-largest mobile carrier, Megafon

Prince Alwaleed Bin Talal Alsaud Saudi Arabia US$21B

The most active and successful investor in the Middle East took his investment vehicle, Kingdom Holding, public on the Saudi stock exchange in July 2007.

Kingdom Holding contains his investments in well-known companies such as Citigroup and News Corp., as well as Four Seasons Hotels and Fairmont Hotel management companies, among many others.

The share price of Kingdom Holding does not fully reflect the 45% drop in stock price of Citigroup, his largest investment, in 2007.

Alwaleed joined the Singapore government investment arm and several other investors in a $12.5 billion capital injection for Citigroup in January 2008; the size of his investment is undisclosed.

In the early 1990s, Alwaleed made a risky bet on Citigroup that paid off hugely; in recent years it accounted for nearly half his fortune.

Alexei Mordashov Russia US$21.2B

Son of mill worker parents, Mordashov studied economics in Leningrad in mid-1980s.

He was later named finance director of a steel mill. When the plant's elderly general director instructed him to buy up company shares so it would not fall into the hands of an outsider, Mordashov bought most of them himself. He became general director and built it into a conglomerate, acquiring automakers, coal companies, ports and transportation companies.

Today his Severstal is Russia’s third-largest steel company but is looking to get much bigger.

In a bid to expand internationally, Mordashov bought Rouge Industries of Dearborn, Mich., and Italian steel producer Lucchini, but in 2006 lost widely publicized battle for steel giant Arcelor to powerful rival and fellow billionaire Lakshmi Mittal.

In late 2007 he presided over the opening of a new mini-mill in Mississippi, in which he is the biggest investor.

One holding he cashed out of last year was Severstal-Auto.

Liliane Bettencourt France US$29.5B

Daughter of L'Oréal founder Eugene Schueller, a man who is said to have a checkered past, with wartime ties to the Nazi regime, Liliane is the world’s richest woman, thanks to her controlling stake in the cosmetics giant. She has held the stock for more than four decades.

She became a widow last November when her 88-year-old husband, Andre Bettencourt died.

Her Bettencourt Schueller Foundation supports medical, cultural and humanitarian endeavors in France and developing countries.

Theo Albrecht Germany US$23B

After World War II, Theo and his older brother, Karl, transformed their mother's corner grocery store into discount supermarket giant Aldi, which now has more than 8,000 stores and $67 billion in sales. They eventually split ownership and management of the group into North and South regions.

Theo still manages Aldi's less profitable northern chain with the help of his two sons.

In the U.S. he owns discount gourmet food retailer Trader Joe's as well as a stake in Supervalu Inc.

He has shunned the limelight for decades, after having been kidnapped for 17 days in 1971.

Little is known about him, though rumor has it that he is very thrifty, collects old typewriters and loves to golf.

Roman Abramovich Russia US$23.5B

Orphaned as a child, Abramovich dropped out of college, then made a fortune in a series of controversial oil export deals in early 1990s.

His fortune took off in 1995 when he teamed up with Boris Berezovsky (now also a billionaire) to take over oil giant Sibneft at a fraction of its market value. (When Berezovsky fled Russia in 2000 to escape fraud charges, he sold out to Abramovich.)

In 2003 to 2004 he sold stake in Russian Aluminum to fellow billionaire Oleg Deripaska, who is now ranked ninth in the world.

In 2005 Abramovich liquidated his biggest asset, selling 72.6% stake in Sibneft to gas titan Gazprom for $13 billion.

In 2006 he bought stake in the country's largest steelmaker, Evraz Group, and, early in 2008, a piece of Highland Gold, a U.K. mining company with operations in Russia.

He also spent some of his cash buying U.K. soccer club, Chelsea.

He recently finalized divorce from the mother of his five children, Irina, but largely stays out of public eye, except for occasional spottings with rumored girlfriend Daria Zhukova.

Lawrence Ellison US US$25B

Oracle titan reshaping the software industry via acquisition; has purchased 21 companies for more than $19 billion since the beginning of 2006.

Forging into retail, business intelligence software; determined to squeeze out German rival SAP.
Biggest challenge: making the myriad applications work together for the release of Oracle Fusion later this year.

Chicago-bred tech tycoon studied physics at U. of Chicago; didn't graduate.

Started Oracle in 1977. Took public in 1986, a day before Microsoft. Companies have been fiercely competitive since.

Side bet: invested $125 million in Web software outfit NetSuite.

Still yearning to win yachting's most prestigious trophy, the America's Cup. Lost last year to Luna Rossi.

Also owns 453-foot Rising Sun; building a smaller leisure boat because mega-yacht is hard to park.

Bernard Arnault France US$25.5B

Arnault put up $15 million from his family's midsize construction company to buy Christian Dior in 1985.

Since then he has built the world's largest luxury goods empire, LVMH Moët Hennessy Louis Vuitton, whose brands include Dom Perignon, Fendi and Tag Heuer.

LVMH, which he still heads, acquired premier French financial daily Les Echos from the Pearson Group last December.

Son Antoine, 28, and daughter Delphine, 32, sit on LVMH’s board.

Arnault has also set up an investment fund with his good friend and fellow billionaire, Albert Frere, in 2006; the pair own two wineries together.

Via his investment arm, Groupe Arnault, owns French tour operator Go Voyages and a stake in French retail chain Carrefour.

Arnault often spends New Year's Eve in his four-star hotel, Le Cheval Blanc, in ski resort Courchevel, France.

He is also said to be a skilled pianist.