The Financial Benefits of a Healthy Lifestyle

 Spring seems to be the time to get moving and get healthy in preparation for the coming summer months (and the need to sport a bathing suit at the beach!!!).  Many of my co-workers and I are in training mode for various events – 5k runs, Triathlons, you name it.  And it turns out that our healthy behavior could have more benefits to us than just our fit and trim bodies and strong heart rates – we could be developing healthy wallets, as well!

Recent studies by the University of Rutgers in New Jersey have found that physical health and financial health are highly correlated to each other, and to a person’s overall happiness.  It appears that the habits that lead to a healthy lifestyle, like the ability to stay disciplined, make good choices and see the future implications of decisions, lead individuals to have a more positive outlook on life, including their current and future financial success.

Interestingly, these are some of the specific relationships that the Rutgers studies identified between health status or behaviors and finances:

• Studies show that physical appearance affects a person’s earning ability; smokers typically earn less than non-smokers who do similar work.
• Healthy people pay lower health insurance premiums now, and typically have lower health care costs throughout their lives.
• Inactivity has been estimated to cost $670 to $1,125 per person per year due to the impact of obesity on overall health.
• Eliminating unhealthy habits saves dollars that can be redirected to investments for future goals.  For instance, eliminating a junk food habit could save $3,650 or more annually.

For the chance at a financially successful future, get up, get moving and get healthy!!

Source:  Rutgers University Health Finance and Health Behaviors Studies (http://njaes.rutgers.edu)

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Actionable New Year’s Financial To Dos

Yes, it’s time to turn the page on 2011 and start anew!  There’s nothing like a fresh calendar to begin making plans for your envisioned future.  Last week, we provided you with some of our Center best ideas for creating financial planning based resolutions.  Here, we provide you with some very specific and actionable steps you can take now to get a start on improving your financial health: 

1. Take score: review your net worth as compared to one year ago
2. Review your cash flow: how much came in last year and how much went out (hint: it is better to have less go out than came in). 
3. Be intentional with your 2012 spending: also known as the dreaded budget – so think “spending plan” instead.
4. Review and update beneficiaries on IRA’s, 401k’s and life insurance: raise your hand if you want your ex spouse to receive your 401k
5. Review the titling of your non retirement accounts: consider a “transfer on death” designation, living trust, or joint ownership to avoid probate.
6. Revisit your portfolio’s asset allocation:
7. Review your Social Security Statement: if not yet retired you will need to go online – everyone’s trying to save a buck on printing and mailing costs
8. Check to see if your retirement plan is on track: plan your income need in retirement, review your expected sources of income, and plan for any shortfall.
9. Set up a regular review schedule with your advisor: an objective third party is best – but at a minimum set aside time on your own, with your spouse, or trusted friend to plan on improving your financial health.

So, after you promise to exercise more and eat less, get started on tackling your financial checklist!

In subsequent posts, we will elaborate on a few of these suggestions. Wishing you a prosperous New Year!