Article by Fedhealth
Many of us have goals connected to both physical or financial health, but would you have expected them to be linked? According to some new studies, they are. In one study by Momentum (UK), a survey “show[ed]a clear and significant relationship between overall well-being and financial wellness”. They looked at established areas of economic well-being, and asked respondents about their feelings towards their physical health. The survey found that “39% of people in ‘excellent health’ reported feeling confident about their finances in the long-term. Of those who reported being in ‘poor health’, just 18% were confident about their long-term finances.”
Stress is at the root of many health complications and diseases. It stands to reason that one of life’s biggest stressors, money, would be linked to health. This goes both ways though, so if you are less stressed about money, you are likely to have better health. To reduce stress and find your feet, get going down the road to better financial and physical health. Here are some ideas to focus on:
Just as you would make a food diary to figure out where you’re eating badly, you should also keep a spending diary. Log every cent you spend, both fixed and variable, and after just a few weeks you’ll notice where the pitfalls of your spending habits lie. Work on healthier eating habits and healthier spending habits: try grocery shopping with a list when you’re not hungry, to avoid buying all the things that expand your waistline and shrink your bank balance.
Do some exercise
Exercise is key when it comes to physical health, but you can do some spending exercises too. Once you’ve tracked your spending, allocate all of it to the named expenses. Then play with the numbers and aim to reduce your spending to increase your savings. Figure out the sweet spot between what you get in and what goes out to figure out spending and savings goals. Then at the end of each month, do a reconciliation to see if you reached your goals. Just as you may aim for a personal best (PB) when running, so you can aim for a PB in your spending habits too.
Eat at home
Think this one isn’t financial? Think again. Eating at home is better for your health, but it’s also better for your wallet. Aim to eat at home 70-80% of the time, and take a packed lunch to work (leftovers work a treat, as long as you plan for them). If you buy lunch every day at R40/day, you can save R200 a week or nearly R10 000 a year. That’s a quite a lump of cash you could be saving for retirement.
Save to splurge later
Several new studies link good savings habits in early life, to better health later in life. A life you’ll actually be around to see, if you’re healthy that is. According to this article, a new study in the Psychological Science journal found that “people who value their future selves enough to regularly put money aside in a nest egg are more likely to also make healthier choices in the present to improve their health in the future”.
So there you have it. A few steps you can take now to improve your financial well-being and your physical health, to ensure you’re healthy, well and cared for when you retire.