How being healthy can save you more than $10k a year!

Your health is your greatest investment.

Perhaps it’s no accident that health and wealth rhyme. They are so inextricably linked, in fact, that it makes sense the words should be so similar, writes financial advisor, Helen Baker.

At face value, it may seem like something of a paradox: that being healthy saves you money.

After all, it costs money to be a gym member, all those organic, superfoods are more expensive, and sports equipment doesn’t come cheap, either.

In practice though, ignoring our health (both physical and mental) can have disastrous impacts on our bank balance and our ability to save for the future.

Here are five of the biggest ways being healthy can actually save you money.

1. Lower medical bills

Ok, this is an obvious one. Fit and healthy people tend to need less medication, see fewer doctors, and suffer fewer injuries and illnesses. But consider the various flow-on effects of poor health. Addiction is one great example.

Poor physical health can lead to dependence on painkillers. Poor mental health can lead to drug and alcohol addiction. These create a damaging potential spiral where the costs of both feeding and treating the addiction soar and create further health needs (such as liver damage) to pay for.

Not everything is covered by Medicare or private health insurance, either.

When looking at medical bills, factor in the cost of commuting to doctors’ appointments, hospital parking fees, and lost working hours too!

2. Cheaper insurances

Did you know that smoking will double, or even triple your life insurance premium? Think of how that will erode your super balance over your working life!

Other lifestyle factors can also impact how much you pay for income protection and health and life insurances. Even your weight (measured as your BMI) can affect your life insurance premiums and even your eligibility for cover.

So, when it comes to insurance, it’s cheaper to be healthy.

3. Higher earning potential

Being healthy increases your earning potential in two ways: cutting your outgoings and boosting your income.

People with a healthy mind and healthy body tend to be more focused and productive at work. They also generally take fewer sick days. These factors are looked on favourably by employers and managers, resulting in a greater likelihood of promotions and pay rises.

Then there’s the money you save by not shelling out for unhealthy habits. Forgoing that chocolate bar every workday might save $2 per day – that’s $480 a year. Quitting smoking? Well, that could be $10,000 a year extra in the bank!

4. Smarter decisions

Health is as much about our mind as it is our body. And a healthy mind means we tend to be much better at decision-making.

Think about it: if you’re exhausted, in pain or depressed, are you more or less likely to get into the nitty-gritty of important financial decisions (that could earn or cost you thousands)?

No. You’ll be thinking about your more immediate needs, like sleep and medical help.

Whereas if you have a healthy mind, you can analyse options and choose the most desirable – meaning lower risk of expensive oversights.

5. Better together

Healthier people tend to live longer, which of course costs more than dying prematurely. But when you’re married or coupled, one of you dying prematurely from poor health can not only be emotionally devastating for the surviving partner – but also financially devastating.

In the short term, there are funeral expenses and administrative costs associated with transferring everything (bank accounts, the family home, vehicles, other assets, utilities, etc.) into the surviving partner’s name. Let alone the stress!

But there are lots of longer-term costs too – lost earnings, lower pension rates, ineligibility to access a partner’s work/professional benefits, loss of two-for-one discounts. Elderly people may also need external carers if they live alone rather than with a partner. Plus, widows/widowers often see their own health suffer under the weight of their grief, ballooning their medical bills.

So, if making money and building wealth is your goal, ensure your strategy involves looking after your health – and your partner’s health too!

This article was originally published in Body+Soul