How Your Health Can Impact Your Finances
Benjamin Franklin once quoted, “Early to bed, and early to rise, makes a man healthy, wealthy, and wise”—but the key to good health (and good financial health) involves far more than just getting enough sleep.1 For most people, health and finances are inextricably linked, and a deficit in one can quickly cause the other to suffer. Learn more about how your health and wellness can affect your financial situation, as well as some ways to help boost both your health and your bank account.
The Connection Between Health and Your Finances
One of the largest connections between your financial life and your physical life involves stress. If you’re living paycheck to paycheck, the worry of how you’ll pay your bills each month can quickly take a toll on your psyche. And the link between high stress and heart disease, stroke, and various mental health ailments is clear and well-documented.2
This type of financial stress can also prevent you from seeking necessary medical treatment, often to your own detriment. Preventing illnesses is always better (from both a physical and financial perspective) than treating them, but this prevention can be cost-prohibitive for many people.
But even if you’ve gained some financial stability, you’ll still find some close connections between your physical and financial health. If long hours at work are leaving you drained and tired at the end of the day, you may skip the gym or order greasy takeout instead of cooking a healthier meal at home. And the high-stakes pressures of a high-paying job, often deemed ”golden handcuffs,” can be a source of stress if you’re not in a position to retire or take a lower-paying job.
Three Ways to Improve Your Financial Health
There are a few steps just about anyone can take that can help improve your financial health and reduce stress, thereby boosting your physical health as well.
Gain Transparency
If you don’t know what you’re spending each month, or what you’re spending it on, it can be tough to make solid financial decisions. By tracking your spending and creating a budget, you’ll be better equipped to plan for major expenditures and can gain more confidence over your finances.
Automate What You Can
Even if you have the money to cover all your bills, remembering when to pay these bills can be a source of stress in itself. By setting your bills on autopay, you can avoid late fees and reclaim the time you spend writing and mailing checks or making manual online payments. You can automate your savings as well, setting up a weekly, biweekly, or monthly transfer to a savings account.
Start Saving—Any Amount is Better Than None
Getting an early start in saving can make far more of a difference in your future net worth than just about anything else you do. Consider this—someone who starts saving $100 per month at age 25 and retires at 65 will wind up with nearly twice as much in savings as someone who starts saving the same $100 per month at 35.3 Even if you can only save a few dollars a week, the benefits of compound interest will help these savings quickly snowball.
All information is believed to be from reliable sources; however LPL Financial makes no representation as to its completeness or accuracy.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.
The information provided is not intended to be a substitute for specific individualized tax planning or legal advice. We suggest that you consult with a qualified tax or legal advisor.
LPL Financial Representatives offer access to Trust Services through The Private Trust Company N.A., an affiliate of LPL Financial.
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1 https://www.mamalisa.com/blog/about-the-old-proverb-early-to-bed-early-to-rise/
2 https://www.heartandstroke.ca/get-healthy/reduce-stress/stress-basics
3 https://www.businessinsider.com/retirement-savings-start-at-25-vs-35-2019-4
