When dreaming up our financial goals, the process typically involves coming up with an end goal in the form of a dollar amount, accompanied by a timeline and a set of actions to guide us toward the intended outcome.
There's no question that any goal with a monetary value has a designated spot on our list of financial objectives. We might not always recognize how other facets of life, like our physical health, can intersect with our finances, even when they aren't explicitly financial.
Many people might naturally classify health and finances as distinct aspects of their lives, but when we peel back the layers, they are far more intertwined than we may initially realize.
When we understand the interconnection between health and financial wellness, it can serve as a powerful motivator to prioritize both, ultimately paving the way for a more holistic and sustainable approach to life.
If you're curious to learn more about how profoundly your physical health impacts your finances (and looking for tips to prioritize both!), stick around as we explore these key areas that spotlight the importance of maintaining a physically and financially healthy life:
Rising healthcare costs
Disabilities and income loss
Health and your ability to create wealth
Let's equip you with the tools to bridge the gap between health and wealth!
Rising Healthcare Costs
It's no secret that healthcare costs are rising (and have even managed to garner a reputation for soaring more quickly than the rest of the economy), and all signs point to this trend persisting.
Consequently, it's become all too easy for medical bills to stack up—sometimes even with insurance in place—for someone requiring ongoing doctor visits, medications, and treatments. Certain medical conditions may indeed be linked to genetics or even the result of an accident, factors entirely beyond our control.
However, it's equally valid that a growing segment of the population is coping with chronic health conditions, which:
Account for the vast majority of health spending and
Are often preventable through early detection, improved diet, exercise, and, in some cases, treatment.
When we consistently neglect our physical health, we increase our chances of eventually needing to reactively address health issues because we failed to proactively prevent them in the first place. As time passes, a common theme in the U.S. can emerge in our own lives—a once-preventable health issue can become a burden on our bodies and wallets.
From a longer-term perspective, it's natural to expect an uptick in healthcare costs as we age, an inherent part of life. However, when the aging process is coupled with lifelong harmful habits to our health, healthcare costs can soar during retirement.
It can be challenging to face the reality of escalating healthcare costs, but sometimes, allowing it to sink in motivates us to take action and prepare for the best possible outcome. The silver lining is that you can prepare for a financially and physically comfortable future.
Here are some ways to maintain your health and minimize medical expenses now and in the future:
Preventative Care: Schedule regular check-ups and screenings to catch potential health issues early and adopt a healthy lifestyle with a balanced diet, regular exercise, and sufficient sleep.
Health Savings Account (HSA) or Flexible Spending Account (FSA): If your employer offers either of these accounts, consider contributing to one to set aside pre-tax dollars for medical expenses. These accounts can be used for eligible expenses like co-pays, deductibles, and prescription costs.
Proactive health management and financial planning are vital in minimizing both immediate and future healthcare expenses.
Disabilities and Income Loss
We've acknowledged the genuine possibility of life dealing us a difficult hand, placing us in a situation where our ability to earn an income may become impacted through no fault of our own.
But once more, we can't ignore the fact that chronic diseases are the leading cause of disability, which all circles back to the importance of leading a health-conscious life.
When we fail to prioritize our health before or even after a diagnosis, it creates the perfect conditions for health and financial chaos—the possibility of one day experiencing a disability that may require us to take an absence from work for treatment or recovery.
Within or beyond our control, disability and income loss can impact our finances in countless ways, including the immediate financial strain from the loss of income, the risk of housing security, debt accumulation, and career disruptions, to name a few.
Alongside prioritizing your physical health to potentially prevent health disabilities, you can implement additional measures to add an extra layer of protection and peace:
Disability Insurance: Explore the option of securing both short- and long-term insurance that serves as income replacement, in the event of a disability that prevents you from working. Make sure that your policies cover your specific occupation and provide sufficient coverage.
Emergency Fund: Build and maintain an emergency fund to cover unexpected medical expenses and minimize financial strain in the face of medical emergencies or income loss.
Addressing the financial impacts of disability and income loss requires proactive planning that involves maintaining your health and preparing resources in advance to tap into in times of need.
Health and Your Ability to Create Wealth
Tending to our physical health not only improves our physical well-being but also boosts our feel-good endorphins and rewires our brain for increased productivity.
Conditions like stress (the wrong kind), anxiety, and depression have infiltrated our society in countless ways. But when we don't address them, it can impact our ability to reach our full potential. While improving our physical health may not be a cure-all, it can certainly play a beneficial role.
If we neglect our physical health, which subsequently affects our mental health, it can trigger a series of consequences for our finances. For example, reduced productivity can make it challenging to sustain employment or reach our full earning potential as employees or entrepreneurs.
Here are some tips to nurture your physical and mental well-being, which just may create a positive domino effect on your financial health:
Realistic Goals: Set and write down realistic and achievable goals for physical activity, diet, and overall well-being. Checking them off your to-do list can be a double victory – physically and mentally.
Doing What You Love: If you've been steering clear of the gym, remember that you're not confined to four walls. You can join a sports league, connect with a neighbor for daily strolls around the neighborhood, pick up gardening, or take your bike for a leisurely ride. Doing what you enjoy makes prioritizing your physical health that much easier.
Recognizing the interconnectedness of health and financial wellness and addressing both holistically is a proactive strategy that can lead to better financial outcomes.
How Can Wealthy Support You on Your Journey to Financial Wellness?
As much as we'd love to, we can't physically be there to cheer you on during your gym sessions or award you a gold star for steering clear of the processed food aisle. But your commitment to a healthier lifestyle is commendable, and we're celebrating you from afar!
However, don't discount us just yet because where we can help you is an area that is equally important to your physical health, and that's your financial health.
We understand the challenge of contemplating and preparing for the things we'd much rather avoid thinking about things like making sure you're prepared for a more expensive future and financial risks ahead.
But we are dedicated to equipping you for a secure future because we know what's on the other side of that preparedness – peace of mind, comfort, and an opportunity to reach your full potential.
The best thing you can do is take actions today that will positively impact your health and financial wellness tomorrow. If you need some inspiration, download our free guide: 7 Simple Steps to Break Free Financially to get started today!