Health and Wealth Connections

 

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.