Financial Wealth and Physical Health - both are vital for long-term well-being and share numerous similarities in terms of the principles and practices needed to maintain them.
Just like we hope that people don’t neglect their physical health, it's critical to give equal attention to financial health because there are so many parallels.
The Foundations: Knowledge and Discipline
Education and Awareness
Building financial wealth begins with education - Understanding the basics of budgeting, saving, investing, and managing debt. You can’t expect to perform well in a marathon without knowing how to train, what to wear, what to eat, and when to push yourself out of your comfort zones. So, why would you expect to achieve financial success without a basic understanding of time value of money, how compounding works or the impact of rising interest rates in the market place.
Where is the parallel to physical health? Knowledge about nutrition, exercise, and overall wellness is the cornerstone of physical health. Understanding how different foods nourish your body, which exercises strengthen it, and how to support mental well-being is essential. No one walks into a gym and knows how to perform a Turkish get up perfectly. And there are a lot of people – some trainers included – that have been doing them wrong for years.
Just like in science, sport AND investing – we are here to ensure that people are doing these things correctly. Education is the first step.
Discipline and Consistency
Building a routine of saving and investing, sticking to a budget, and avoiding unnecessary debt requires discipline. Financial health is not built overnight but through regular, sustained efforts over time.
Regular exercise, a balanced diet, and adequate sleep are the pillars of physical health. Like financial wealth, physical health is achieved through consistent habits and routines.
And we know that habits get easier with time. You’re flexing your muscles – your brain, your reasoning, your body. It creates momentum and builds strength and resilience, so that when there is a setback – whether you get sick and can’t work out, or there is a market downturn - we can deal with it so much better. Muscle memory & financial discipline.
The Importance of Regular Check-Ups
Monitoring Progress
Regularly reviewing your financial situation is similar to a general health check-up. This includes tracking your expenses, watching your investments, and reassessing your financial goals with your advisor to ensure you are on the right path.
Regular health check-ups, checking your fitness levels, and keeping track of your diet are essential to maintaining physical health. These check-ups help identify any issues early and adjust your health strategies accordingly.
Now, if you’re anything like me, the thought of writing down everything that I eat is as equally appealing as writing down every dollar I spend. Start with the basics – the big ones. Estimate your caloric input and output each day. Write down a general cash flow statement – loans, income, savings. Once you get into that habit, then start to get more granular. Use the tools available to you – smart watches, my fitness pal, and online budgeting tools.
Seeking Professional Advice
Financial advisors play a crucial role in guiding you through complex financial decisions, offering personalized advice, and helping you create a robust financial plan.
Health professionals such as doctors, nutritionists, and personal trainers, provide expert guidance tailored to your individual health needs. Their advice helps you support or improve your physical health effectively.
You don’t know what you don’t know and that’s why we have coaches. The best athletes in the world have coaches because coaches can see what the athlete can’t. And that is what a financial advisor does. But there are also things that investors can do on their own. Listening to podcasts like The Free lunch, attending market information events, and understanding they have control in this. All of this builds confidence. And confidence is power.
The Long-Term Perspective
Let’s not forget that as you age, your approach to fitness, activity and investing will change. The over reaching goal remain the same – bit how you get there may look different over time.
Financial Planning for the Future
- Setting Goals: Financial health requires setting long-term goals such as retirement planning, buying a home, or funding education. These goals supply direction and motivation.
- Risk Management: Understanding and managing financial risks, such as market volatility or job loss, is crucial for long-term financial stability.
- Retirement Planning: Building a retirement fund through regular contributions and smart investments ensures financial security in later years.
Physical Health & Longevity
- Preventive Care: Regular health screenings and preventive measures, such as vaccinations and healthy living, reduce the risk of serious illnesses.
- Fitness for Life: Maintaining physical fitness through regular exercise helps ensure mobility, strength, and independence as you age.
- Mental Well-Being; Mental health is a critical component of overall well-being. Practices such as mindfulness, therapy, and keeping social connections contribute to long-term mental health.
The Benefits of Balance
At the end of the day – there needs to be balance, because without it, you burn out. So go slow and don’t forget to reward yourself every once in awhile.
Financial Health Benefits
- Security and Peace of Mind: Financial stability supplies a sense of security and reduces anxiety related to money matters.
- Opportunities for Growth: Sound financial health allows you to take advantage of opportunities, such as investing in new ventures or furthering education.
- Enhanced Lifestyle: Financial wealth can enhance your lifestyle, providing the means to travel, enjoy hobbies, and access better healthcare.
Physical Health Benefits
- Improved Quality of Life: Good physical health enhances your quality of life, allowing you to enjoy activities and experiences fully.
- Increased Energy and Vitality: Physical fitness boosts energy levels and overall vitality, making everyday tasks easier and more enjoyable.
- Reduced Healthcare Costs: Maintaining good health can reduce long-term healthcare costs by preventing chronic illnesses and reducing the need for medical treatments.
You can hear more about Karyn Silenzi's personal journey from Wealth to Health and back to Wealth HERE.
