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Health and Wealth Part 1: How Your Physical Health Affects Your Financial Wealth
Financial advice covers more than investments, savings, and retirement accounts. A good financial advisor should look at all aspects of your life and provide guidance, support, and recommendations to help you make the most of your money.
In our Health and Wealth series, we explore how your health, aging, medical needs can affect the dollars and cents that are in your account. Future posts will highlight important financial conversations to have with aging parents, and the different ways to pay for healthcare in retirement. Today, we’re discussing how your physical health—fitness, nutrition, and mental well-being—can actually affect your financial wealth.
What’s The Connection Between Physical Health and Financial Wealth?
Being physically fit won’t necessarily make you rich (unless you are a professional athlete). But research shows a clear link between health and wealth that works both ways.
According to a study published in the American Journal of Health Promotion, inadequate leisure-time physical activity in the US accounted for over $192 billion in annual healthcare expenditures. That’s over 12% of annual healthcare spending. The study found that:
- Adults who don’t exercise enough pay $1,355 more in healthcare costs annually
- Adults who don’t exercise at all pay $2,025 more in healthcare costs annually
Why? Physical activity, especially aerobic physical activity, strengthens the heart and can help prevent chronic disease. Health maintenance activities, like diet and exercise, can help the average American potentially save money in healthcare and prescription costs. Those savings can be redirected toward other financial goals.
The connection also works in reverse. Financial security—or a lack thereof—can impact your physical health. According to Columbia University professor Peter Muennig, financial security reduces stress. In this article, Muennig says, “If you’re financially secure with a retirement account that’s doing well, you will probably feel more comfortable shopping at a ‘natural foods’ supermarket, and you might not take a side job or work overtime, leaving more time for exercise. Less stress, a good diet, and exercise means that you will likely age more slowly than you otherwise would have.”
4 Steps To Improve Your Health and Wealth
Health Tip 1: Exercise
There are numerous studies highlighting the benefits of physical activity for children, teenagers, and adults of all ages. The US Centers for Disease Control (CDC) recommends 150 minutes per week of moderate-intensity aerobic activity (such as brisk walking) or 75 minutes of vigorous-intensity aerobic activity (such as jogging or running) every week. In addition, they recommend muscle-strengthening activities that work all major muscle groups (such as weightlifting) 2 days per week.
Regular aerobic exercise and strength training can help manage weight, reduce cardiovascular disease, reduce the risk of developing type 2 diabetes, and more.
Wealth Tip 1: Develop Your Emergency Fund
Financial security starts with being prepared for surprises. With an emergency fund, you can have confidence that the unforeseen won’t interfere with your long-term goals.
Each person’s emergency fund will look a little different, and that’s okay. What makes sense for a married couple with three children won’t apply to a young single professional, or to recently retired empty nesters. A good rule of thumb is to have 3-6 months of living expenses saved—your specific preference will depend on your tolerance for risk.
Health Tip 2: Maintain a Healthy Diet
As part of the Dietary Guidelines for Americans, the CDC says that a healthy eating plan:
- Emphasizes fruits, vegetables, whole grains, and fat-free or low-fat milk and milk products
- Includes a variety of protein sources, including seafood, lean meats and poultry, eggs, legumes, soy products, nuts, and seeds
- Is low in added sugars, sodium, saturated fats, trans fats, and cholesterol
The benefits of healthy eating include longevity; healthy skin, teeth, and eyes; lower risk of heart disease and type 2 diabetes; and much more.
Wealth Tip 2: Automate Your Savings
Automating your investments and retirement savings can reduce the ongoing stress of financial management while building your nest egg for the future. Set up automatic transfers from your checking account to your savings and retirement accounts on payday. This “set it and forget it” approach removes temptation and builds your financial future consistently without requiring daily decisions.
The best part? You quickly adapt to living on what remains in your checking account. Within weeks, you won’t miss the money because it’s already working toward your goals before you can spend it.
Create a Plan To Better Your Health and Wealth
For your health: Contact your doctor to get 1:1 guidance of ways to improve your health, fitness, and diet.
For Your Wealth: Contact Madison Financial Strategies for a free consultation. Your financial future is worth the investment.
Ready to optimize your financial strategy?
Contact Madison Financial Strategies today for a complimentary consultation. We understand the unique challenges of public service careers and can help you build a comprehensive financial plan that secures your family’s future. Schedule your consultation now and take control of your financial destiny.
The statements made herein are for informational purposes only and should not be considered specific health or wealth recommendations. Contact a medical professional prior to engaging in any exercise routine or diet.