Recently a couple of different studies conducted in both the medical and financial fields have discovered a link between physical health and financial health. The studies have found that people that give attention to their physical health seem to have a healthier financial portfolio and that these two have profound impacts to the future health of each.
How Health and Wealth are Interconnected
It is said that as much as 80 percent of our overall health status is determined by the 12 social determinants of health, according to the medical professional realm. The Office of Disease Prevention and Health Promotion describes these social determinants as conditions in a person’s environment that can have an impact on their health, ability to function, and quality of life. These determinants are things like where a person is born, lives, what they learn, their work, how they play, worship, age, etc. It includes how much a person’s income is which is believed to be tied to how much power a person feels and how much a person invests in self-care and fitness.
Dr. Jordan Baechler, medical director of the emerging science center of the Minneapolis Heart Institute Foundation, says she notices this to be true among the patients she cares for.
Taking Care of Your Health Now Will Benefit in Many Ways in the Future
It is not only the medical world that sees the ties between health and wealth. Many financial planners see the relations as well. Angie O’Leary head of Wealth Planning at RBC Wealth Management has seen that the two will always be intertwined and will become more obvious as a person ages.
A better quality of health in later years can drastically reduce the financial impact of health care bills. Good financial planning now can also help to reduce the stress and impact of having to pay for health care costs later. Angie notices that those who hire the services of a financial advisor have greater confidence, it is akin to hiring a personal fitness trainer or dietician. She also states that good financial advisors will see the importance of investing in your fitness.
Some large financial planning institutions have seen the significant ties between health and wealth and have begun to put on events to communicate how important taking care of your health and wealth are to prepare for the future and how they can highly impact one another.
How Different Generations are Seeing These Impacts
There is also a unique link between generational health and economic well-being. A study titled the 2019 Data Analysis conducted by Blue Cross Blue Shield found that the Millennial generation is seeing a faster decline in their health than the generation before them. This decline is both physical and mental. The study states that the poorer health of the Millennial generation will hold them back from contributing to the economy as much as they otherwise would. The importance of actions like a good diet, exercise, and plenty of sleep can help to turn these numbers around.
Another generation facing hurdles are the women of the baby boomer generation. They statistically outlive male spouses and a longer expected lifespan brings more to the aspect of financial planning. Many of us probably ask (especially as we get older), “how do I prevent a heart attack?” This is a great question, but we should also be asking, “How do I prevent turning 50 and facing the crisis of not having a retirement plan?” Failing to do so results in leaving smart money, investments, and future financial health at risk.
It is smart for adults to feel good and confident and stress free in all areas of their lives, especially in career, health, and investments. They are all tied tightly together.
For more information on financial choices that can impact other areas and your overall quality of life please contact us right away. Our dedication is finding you a solid financial plan you can feel good about now, and in the future.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.