Personal and financial fitness are more alike than you might think

When I turned 60 in January 2022, I set some important goals for myself.

I weighed 230 pounds in the middle of 2022, the heaviest I’ve ever been. My body, mind, relationships and wallet were all suffering as a result. I needed to make a change.

My initial goal was to run in the Dewey Goes Pink 5K. I told myself, come rain or shine, I will be running the 5K, and I did just that. It wasn’t the fastest I’ve ever run, but I finished, running the entire distance. Since then, I have officially reached my goal of losing 50 pounds, and I now feel healthier both physically and mentally.

Although my running time wasn’t the fastest, my pace was steady. Our personal finances work in a similar way. Steady and regular gets you to the finish line. Sprint and stop may get you there, but it likely will take much longer and hurt a lot more.

So, are these words of wisdom about our minds and bodies or about our net worth? They’re about both.

Have you ever felt physical stress or anxiety over how you feel in your skin or your financial situation? Likely you have. So, it’s no coincidence that there are so many similarities linking fitness, mental health and finance.

In 2021, HSBC Bank, one of the largest financial institutions in the world, conducted a Life+Factor Study of more than 10,000 people from the United Kingdom, Hong Kong, Mainland China and Singapore. The study’s goal was to better understand the relationships involving our physical health, mental well-being and financial fitness.

Mark Hussein, HSBC CEO, said, “The study not only highlighted a strong correlation between these three factors, and observed that when one aspect of well-being improves, the other dimensions improve as well; it also demonstrated how financial planning helps our general well-being. It shows that making small changes in long-term financial planning can have a positive impact on our mental and physical health. For example, nearly three-quarters of those who review their financial plans at least once a year have average or above-average mental health, while half of those who do not review their financial plan claimed they have below-average mental health. Similar results were found for those who have healthcare protection and those who have comprehensive retirement plans.”

In my view, the best endorsement was among those who take financial advice; the study said, “74% of respondents report average or above-average mental health, whilst more than two out of five (42%) who do not take financial advice have below-average mental health.”

Medical studies show that stress negatively affects our mental and physical fitness. Much of this stress is found in your financial fitness. If you aren’t sure what your financial situation will be when you want to retire, that causes stress.

As an example, COVID-19 was a huge stress driver. However, reports show that the lockdown period caused many people to make the wise decision to save more money and improve their overall financial plan. So, is the answer that stress improves your financial situation? Not at all. It was the choices many people made during COVID’s worst times that today have helped relieve some pressure around one big stressor, money.

A personal trainer helps people improve their personal fitness, which benefits their physical, emotional and mental health. A true holistic financial planner helps individuals and business owners improve their financial fitness. Improved financial fitness, like personal fitness, leads to an improved sense of self-worth and confidence, which also reduces stress and helps your mental health.

With the new year, I ask you to look at your own situation. Are you confident that your income in retirement will afford you the lifestyle you want to maintain? Do you feel that improving your financial situation can reduce stress in your life? What does your dream retirement look like? Have you planned how you will spend your time in retirement? Do you need to start to assess your financial plan in anticipation of being retired, or should I say, unemployed?

A financial advisor might not be able to lead you in a workout routine, but one can help you strengthen your financial health by giving you knowledge to make healthier long-term financial decisions.