The Fitness-Finance Connection: Why Getting Healthy Can Boost Your Bank Account

Wanderers, conventional wisdom often portrays wealth and health as separate entities. We chase financial success, sometimes at the expense of our well-being. However, first principles thinking (an approach which was used by the philosopher Aristotle and the late Charlie Munger and still used now by Elon Musk) reveals a deeper truth: investing in your health is a cornerstone of building long-term wealth. This unveils a profound connection between our physical well-being and our financial prosperity. In today’s article, let’s explore the symbiotic relationship between health and wealth, and how investing in your health can be a strategic financial decision. We will discover how building wealth with your health is not only achievable but essential for a prosperous future.

PS: I like using the First Principles Thinking to understanding and explaining concepts which can be complex at first encounter, so I hope you can get the most out of the readings. Let’s get back to it.

So, what is Wealth, really?

Traditionally, wealth is measured in dollars and cents. However, true wealth encompasses a broader definition, encompassing not only financial security but also physical well-being and overall life satisfaction. Simply put, wealth is all about finances, physical well-being, mental clarity, and the freedom to pursue your passions.

How about Health? The Foundation of Wealth Creation

The World Health Organization defines health as "a state of complete physical, mental and social well-being." This holistic view underscores how health significantly impacts our ability to generate and maintain wealth. 

Actually, there are numerous studies supporting this holistic view, demonstrating how neglecting your health can significantly impact your financial situation. For instance, a 2020 study published in the Journal of Health Economics found that individuals with chronic health conditions face an average of $1,500 more in annual healthcare expenditures compared to those in good health.  A 2016 study in the Journal of Occupational and Environmental Medicine revealed that poor health can lead to lost productivity and decreased earning potential. Furthermore, a 2023 article published by the Associated Press(AP) found that medical expenses are the leading cause of personal bankruptcy in the United States only.  And according to Centre for Disease Control, the cost of chronic diseases like heart disease, diabetes, and cancer is staggering, not to mention the lost productivity and reduced earning potential due to illness and disability.

Conversely, prioritizing your health can yield significant financial benefits. A 2019 study in Preventive Medicine found that healthy lifestyle habits like regular exercise and proper diet can lead to substantial healthcare cost savings in the long run.

The Wealth-Building Potential of Health

The link between health and wealth goes beyond cost savings.  Good health often translates to increased energy levels, improved focus, and higher productivity at work.  A 2018 study in the Journal of Management found that employees with healthy lifestyles demonstrate higher levels of work engagement and are more likely to receive promotions and advancements in their careers. This ultimately translates to higher earning potential and increased financial security. 

At the same time, first principles thinking emphasizes prevention. Investing in preventive healthcare like regular check-ups, healthy eating, and exercise reduces future medical costs. A 2017 study in Preventive Medicine found that healthy lifestyle choices can save individuals thousands of dollars over a lifetime.  This translates to greater financial security and a stronger safety net against unexpected health events.

The Cost of Neglecting Your Health

Poor health can quickly erode your financial security. I want you to consider these 3 key challenges that you are likely to face due to poor health choices:

Number one are the Medical Expenses which come in all shapes and sizes: Chronic diseases like diabetes and heart disease are major drivers of healthcare costs. A 2020 study by the American Heart Association found that the total cost of cardiovascular disease alone in the US reached a staggering $831.8 billion.

Number two is the Loss in Productivity: Illness often translates to missed workdays, reduced productivity during work hours, and decreased earning potential.

Number three are Long-Term Liabilities: Poor health can lead to early retirement, impacting overall lifetime earnings.

A High-Return Strategy

Here's where first principles thinking shines. By prioritizing preventative healthcare and healthy habits, we can significantly reduce the risk of future medical expenses and lost productivity. Basically, what I am trying to answer here is, how can we prevent a prominent ripple effect originating from our health issues?

Prevention is Key: Regular check-ups, healthy eating, and consistent exercise are crucial for maintaining good health and reducing future medical expenses. A study in the American Journal of Preventive Medicine found that healthy lifestyle choices can prevent up to 80% of type 2 diabetes and heart disease cases.

Long-Term Investment: I can attest that healthy habits, like exercise and proper nutrition, are investments in your future self. Think of it like compound interest – the benefits accrue over time, leading to a healthier and wealthier future.

Building Resilience: If you have a strong foundation in health, you will gain the superpower of weathering life's storms(literally). You'll be better equipped to deal with unexpected health challenges, minimizing financial disruptions.

Holistic Approach: Consider the connection between physical, mental, spiritual and emotional health. Managing stress, getting enough sleep, and fostering healthy relationships all contribute to your overall well-being. A 2018 study in the Journal of Psychiatry found that individuals with strong social connections and positive mental health tend to have healthier lifestyles and make better financial decisions.

Empowering You to Take Control

After sharing all this knowledge with you, I believe you now understand how your health is an investment for a greater wealth, and you can now begin making positive changes. The most important thing to remember is that taking charge of your health is achievable. To help you get started on the that journey towards a better health, I have compiled some evidence-based strategies:

1. Schedule Regular Check-ups: Because early detection is key to minimizing future expenses, you can do regular check-up's, discuss your health goals with a doctor and even create a personalized preventive care plan.

2. Free or Low-Cost Preventative Measures: If you happen to be working in a company or an institution that prioritizes worker’s health and well-being, you can utilize free health screenings offered by your employer or your community. There are also online resources providing free exercise routines and healthy recipes.

3. Focus on Sustainable Habits: Aim for small, incremental changes you can maintain long-term over drastic, short-lived efforts.

4. Seek Support: Join online communities or find a workout buddy for increased accountability and motivation. We like to call this a ‘tribe’ such as that by Aussi  

5. Prioritize healthy eating: If you were to put a different type of oil in your car other than the one instructed by the manufacturer, then you will definitely experience an engine failure and most probably scramble your whole car system. The same goes for your body, you need to explore cost-effective strategies for incorporating nutritious foods into your diet. Food is the necessary fuel you need to make your next move, so do not ignore it. You can find budget-friendly options to help you in your nutrition such as an affordable nutritional coach and meal planners.

6. Find an exercise routine you enjoy: If you decide to go to the gym just because your friends are going then you’ll probably end up giving up or worst-case scenario hurting yourself because you have no clue about what you are doing and even how to do it. A wise decision to make, after the one where you decide to workout, is to choose the type of exercise you enjoy doing, a timetable that you can definitely stay committed to, whom are you going to do it with and the (happy)place where you are going to do it from. Simply put, discover physical activities you find fun and can incorporate into your daily routine.

7. Prioritize sleep: Same as food and exercising, enough rest time is an essential thing if you really want to be healthy. You should aim for 7-8 hours of quality sleep each night for optimal physical and mental(cognitive) performance.

8. Manage stress: “If you’re frequently triggering your stress response, your body never gets back to its baseline,” says Johns Hopkins sleep expert Luis F. Buenaver, Ph.D., C.B.S.M. From time to time, practice relaxation techniques like meditation or yoga to manage stress and improve overall well-being. Watching a ballgame or movie on TV just isn’t the same as taking the time to fully relax. Instead you can try, practicing gentle breathing and progressive muscle relaxation every day (20 to 25 minutes) for two weeks. On a scale of 0 (“totally relaxed”) to 10 (“completely tense”), rate your level of emotional and physical stress before and after.

Remember Wanderers, building wealth is a journey, not a destination. When you prioritize health as a core investment, you're laying the foundation for a secure financial future and a life filled with vitality and fulfilment. 

The truth is, true wealth encompasses both financial security and a healthy, fulfilling life – and they are more interconnected than you might think.

You are always invited to share your wealth building process in the comments section so that you may inspire another person, lets inspire each other to be better versions.

 

Onward to conquer and thrive!