Health and wealth are both important resources for
living a happy and successful life.
People in poor health often die young and spend thousands of dollars
(that could have been invested) on health care costs. On the other hand, those who practice
recommended health behaviors are more likely to exceed average life expectancy
and need a large nest egg to insure that they don’t outlive their assets.
From my book, Small Steps to
Health and Wealth, below are ways that health and wealth are related:
¨ Problems Generally Start Small- Weight
problems usually develop gradually, such as gaining 3 to 4 pounds a year due to
increasingly sedentary lifestyles and larger food portion sizes. A comparable financial example is
“perma-debt” (i.e., a permanent debt balance on credit cards) and increasingly
higher interest and/or fees as outstanding balances rise.
¨ Less Stigma Than Before- With
many Americans having “weight issues” and almost 500,000
non-business bankruptcies filed in 2024, health and financial problems have
gone “mainstream” and are more tolerated, if not accepted, by society. When many people are doing the same thing or
have the same characteristics, it is hard to view them as “abnormal.”
¨ Impacts on Job Productivity and
Discrimination- Overweight and unhealthy people often have
a difficult time getting hired and some may have difficulty performing the
duties associated with their job. Similarly, personal finance problems also
affect job performance. One widely
quoted study
estimated that 15% of workers have financial problems (e.g., high credit card
debt) that negatively impact their job productivity.
¨
Lots
of Technical Jargon- Both the health
and medical fields have jargon and acronyms. Think BMI (body mass index) and
LDL cholesterol and REIT (real estate investment trust) and
NAV (net asset value, a term used with mutual funds). Worse yet, personal
finance and health information sometimes contains contradictory “expert”
opinions or research results, making it very difficult for consumers to know
how to interpret and use conflicting findings.
¨
Fear
of Drastic Changes- Many people believe they must make major
lifestyle changes to be healthy and wealthy.
So, instead, they “freeze” and do nothing. In reality, every small step
makes a difference whether it is increasing physical activity, eating healthy
snacks, or saving 1% or more of your salary for retirement. The trick is to get
started today.
¨
Restrictions
Help Avoid Problems- Some people find it helpful to lose weight
by eating portion-controlled foods (e.g., convenience food entrees and
nutritional diet drinks) that contain nutrition labels and calorie counts. An example of a financial restriction is
having tax-deferred retirement plan savings automatically deducted from your
pay.
¨
The
Longevity Connection- People
who practice healthy behaviors, such as not smoking, exercising regularly, and
eating at least five fruit and vegetable servings daily, decrease their risk of
dying prematurely. They also need to
accumulate adequate wealth so they don’t outlive their assets. Stated another way, the “price” of better
health is the need for increased wealth.
This post provides
general personal finance or consumer decision-making information and does not
address all the variables that apply to an individual’s unique situation. It does
not endorse specific products or services and should not be construed as legal
or financial advice. If professional assistance is required, the services of a
competent professional should be sought.
