Waistlines and Wallets: How Your Health Affects Your Financial Wellness

Improving Your Health Can Improve Your Financial Decision-Making

Do you spend hundreds of dollars per month eating at restaurants? Do listless mornings make you unproductive at work? Unhealthy habits can put your financial well-being at risk, and those risks may not be as obvious as a you may think. Your financial wellness, or the ability to govern your finances, also depends on a disciplined, motivated, and healthy physical routine.

Your physical and financial well-being add up when you have good nutrition, proper rest, and adequate exercise. In fact, one study from Washington University in St. Louis showed that individuals who regularly save and contribute to their nest egg are also more likely to adopt healthier choices after receiving health exam results. It shows that good decisions regarding health are often linked to positive decisions regarding finances as well.

Discipline and self-control are key to balancing your health and finances, but when things don’t add up, much is at risk. Here are some examples of how you can take control of your health and finances — and how employers can use the benefits of health programs in the workplace.

Eating Well for Financial Wellness

Eating too many restaurant meals leads to higher levels of obesity, increased body fat, and a higher BMI. With food and labor costs at record high levels, eating out costs double the cost of cooking at home, not to mention the fact that restaurant prices have risen 24% over the past four years. This can wreak havoc on both your body and your wallet.

The common factor between good eating habits and financial health is self-control. According to Rutgers University, weight loss and wealth are connected. Those who manage their weight are more likely to develop a “prevention mindset” where they think about how decisions now will affect them in the future. That means they are less likely to make impulse buys, or eat that extra piece of cake.

So, what can you do? Try planning your meals ahead of trips to the grocery store, and plan when you will be eating out. If the ingredients for a fresh meal are sitting at home waiting for you, you’ll be less likely to stop at a restaurant for dinner.

Good nutrition will not only help you look and feel better but will also reduce your medical expenses. The research is clear: people who exercise have stronger immune systems and get sick less often. They save money on over-the-counter medications, use fewer sick days, and see their doctors less often. You’ll have more energy to work hard and play hard, and that will benefit your financial wellness in the long term.

Do Obesity Drugs Equal Financial Wellness?

For decades our society held on to the belief that those battling obesity lacked willpower, discipline, and self-control. Trying to battle obesity with that usually fails, as many with various addictions can tell you. Now, pharmaceuticals that can assist in the battle of the bulge have been a game changer. 

Not only are more people finding success losing weight, but the economic impact of the obesity drug market is far-reaching. Some of those impacts are obvious. For example, Goldman Sachs predicts a reduction in healthcare spending by $300 billion due to these drugs; Walmart reports that Ozempic and Wegovy drug users are spending less on food. Fast food restaurants are reporting a decline in sales as these medications increase in popularity. 

These drugs can have further economic effects, such as people spending more on clothing; a reduction in airplane fuel usage; and dramatic changes in food purchasing habits. Financial experts predict that the US GDP will increase by 1% if 60 million people use these drugs annually. This healthcare innovation trend could increase the GDP by $360 billion annually! 

This market is not without controversy. 

These drugs were created to assist diabetics in better managing their A1C; the weight loss and cardiovascular benefits were side effects. These unforeseen, but positive, side effects have created an increased demand, which has, in turn, created a shortage with many diabetics struggling to get the medication they need. 

Many experts believe the long-term medical side effects of these drugs could have negative consequences. Many insurance companies will not insure prescriptions for patients seeking weight loss who don’t also have high blood sugar or other obesity-related illnesses. As a result, only those who can afford the $1500 a-month price tag will reap the benefits. The disparity in access to the drug has created a situation where the well-off will benefit and others will not. Obesity drugs have become another factor widening the class disparity when it comes to the wallets and waistlines of Americans.

Exercise Helps You and Your Wallet Stay Fit

Are you being outperformed by coworkers who make the time for daily runs or cycling classes? Do they have the energy to work late when up against deadlines while you struggle to stay awake?

Most people with families and careers find it hard to fit in a daily workout, but skipping this healthy habit can cost you much more in the long run. Regular exercise gives your brain more energy to work and boosts cognitive performance, which can improve productivity and financial wellness. One study in the Journal of Labor Research found that regular, daily exercise can actually increase your pay by 6 to 10%.

Incorporating two and a half hours of exercise per week can create meaningful results in both your waistline and energy levels. Fitting in exercise does not have to mean joining an expensive gym. You can try biking or walking to work. Consider working out with a friend to stay motivated. Use the weekends to explore your city on foot or take a hike through a local park.

Long-term financial health requires discipline and planning, just like a long-term exercise plan. Start slowly and build up. Make plans and stick to them. You will be rewarded with more energy and a trimmer waistline.

Can You Sleep Your Troubles Away?

You say you’re getting four to five hours of sleep a night, so you’re ‘OK.’ Think again. That lack of sleep still means your decision-making is not as clear as it should be. In fact, it can be detrimental to your efficiency, memory, and your intellectual development.

Tomas Chamorro-Premuzic, Chief Talent Scientist at ManpowerGroup, tells the Harvard Business Review, “…Sleep gives your brain time to get rid of metabolic waste, including proteins that can build up and form plaque between your brain cells. Over the short term, poor sleep has been associated with a lower IQ, and over the long term, it has been associated with Alzheimer’s disease.”

A few more hours of sleep on a regular basis can make a huge impact on your well-being. Think of the following as basic good sleep ‘hygiene’: 

• Turn electronics off or keep them out of your bedroom.
• Avoid screen time 30 minutes before bed.
• Take a power nap when you can.
• Invest in room-darkening shades.

Don’t Sweat the Small Stuff

There are two types of stress: positive and negative. While positive stress helps you stay focused and on-task, negative stress leaves you feeling overwhelmed and disengaged. It can also lead to burnout. Stressed-out workers miss work more often, and the toll stress takes on your immune system leads to even more missed days.

In addition to missed work days and disengaged employees, many experiencing stress turn to retail therapy as a temporary stress reliever. Unfortunately, like stress-eating, stress-shopping can result in more problems once the initial buying high goes away. You’ll rack up bills, and you may feel some buyer’s remorse.

De-stressing your life can initially appear to be a lot of hard work, but the payoff is worth it for your mental health and your financial well-being. Develop your own healthy stress coping mechanisms, like reading a book or going on a run with a friend. Incorporating healthy habits into your coping routines can have a huge impact on reducing negative stress in your life. Disconnecting from work stress and reconnecting with nature and your family will help you create a better work-life balance and result in less stress overall. When you reconnect, your work time will be more focused and productive.

Depression Takes a Toll

Depression can reach levels that impact every aspect of your life. People who struggle with debt are eight times more likely to report dealing with sadness and depression. People who struggle with depression are also more likely to face dire financial consequences as a result of overspending.

Sometimes, overspending is a coping mechanism, just like those coping with stress. Other times, overspending is a result of not having access to proper health care through insurance plans that cover mental health issues. Before the Affordable Care Act, many patients were left to struggle , which often resulted in negative financial outcomes.

While medical attention is certainly necessary to help alleviate depression, It’s important to find the source. Make a plan to pay off debt and stick to it. When you build in delay tactics, like leaving your credit card at home when you go out, you avoid impulse purchases. By doing this, you’ll avoid the guilt and sadness that accompany impulse shopping. Celebrate when you reach goals in paying down debt, and track your progress. Your physical wellness and financial wellness are directly related. As you approach balance in one, the other will start to move in that direction as well.

How Employers Can Implement This Balance

The connection between your health and finances has large implications at work. Many employers find that implementing a health and wellness program for their employees is also good for business. Not only are workers who exercise during work hours more productive, but they are also less susceptible to contracting illness in the workplace.

A 2023 EBRI Workplace Wellness survey found that 54% of employees feel that mental health benefits have become more important, with 42% of employees having high or moderate concern about their physical health. These health programs target nutrition, exercise, budgeting, investing, debt management, and more. Financial wellness programs are equally important as those focused on health, given that 30% of workers report being distracted by their finances at work.

Incentives for employees can range from simple measures to larger ones and can include:

• Standing desks
• Nursing rooms
• Onsite gym memberships or team exercises
• Health foods and snacks in the cafeteria
• Smoking cessation programs
• Health screenings and flu shots
• Mental health counseling
• Retirement planning tools
• Long-term care insurance
• Low-interest loans
• Financial education classes

Whether you’re an employer or employee — taking advantage of health and financial wellness programs can prevent the cycle of stress between one’s waistline and wallet.

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[Editors’ Note: To learn more about this and related topics, you may want to attend the following on-demand webinars (which you can view at your leisure, and each includes a comprehensive customer PowerPoint about the topic):

1. Turning an Idea or Product Into a Business
2. Persuasive Brief Writing / Style
3. The Sales, Marketing, Advertising & Publicity Bootcamp (SMAP) / Growing Your Business with ChatGPT and AI

This is an updated version of an article originally published on October 14, 2020.]

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