Researchers found that those with more severe debt may be more likely to have physical and mental health issues, although causality is a challenge to establish.1 Fortunately, taking steps to improve your financial habits may also benefit your health. Here are some financial exercises to consider to help you explore the relationship between health and wealth.
Set Goals and Make a Plan
Whether you hope to lose weight, manage your blood pressure, save for an emergency fund or cut expenses, having a goal and a plan to get there is key. Breaking down your goals into sub-goals and smaller actions may make them seem more manageable. Using this process may provide you with the confidence to get started.
It is also important to schedule rewards along the way. Splurging occasionally, whether on a decadent snack or a luxury expense, might help you keep the momentum going toward your ultimate goal.
Tracking your spending might be a good first step in managing your finances. Write down every source of income and every expense per month. To determine how much money you have leftover to put toward your short- and long-term financial goals, add up your income and subtract all your expenses. If your expenses are too high, take steps to manage spending.
Watch Your Intake and Outflow
When you try to manage your weight, it may be helpful to monitor calories and exercise. Similarly, it may be beneficial to monitor your income and expenses to find ways to manage spending.
By tracking your spending and income, whether through an app or on paper, you may get a better idea of expenses you might cut or budget categories that may need an increased allocation.
Note that a temporary slip-up does not need to send you careening off track. Even if you do not follow your goals for a short time, you always have the chance to start over again.2
Know that Health is Wealth
Although money stresses may harm your health, having fewer financial worries may not be impactful when dealing with a serious health issue. It is important to understand that money might not buy better health.
Poor physical health may make it tougher to embrace beneficial financial behaviors. For example, you may not have the energy or mental fortitude to seek out a better-paying job, or you may find yourself spending a disproportionate amount of money on health care expenses without much leftover for savings. Poor physical health may also potentially force you into early retirement or create mental health challenges.
Taking good physical care of yourself by eating a balanced diet, getting plenty of sleep, quitting unhealthy habits like excessive drinking or tobacco use and increasing your physical activity may help manage your risk of some serious, long-term health challenges. Taking good financial care of yourself by creating and following a detailed budget and keeping track of your progress might help you work towards a financially healthy 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.
All information is believed to be from reliable sources; however LPL Financial makes no representation as to its completeness or accuracy.
This article was prepared by WriterAccess.
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