The Link Between Health and Money

Did you know if you feel better you are more likely to manage your money better?

A study out of the Olin Business School at Washington University in St. Louis found that future-minded people who contributed to a 401(k) were more likely to take steps to improve their health. There’s another study out of Duke that low credit scores could be used to predict increased risk of cardiovascular disease.

It seems like there are more reasons to get your financial matters in order besides wanting to buy a dream home. Let’s look at how your health and finances are linked.

Lack of sleep can cause us to make many poor decisions, all leading to negative financial consequences. It could be as simple as buying a subscription that you don’t need or as big as drastically overpaying for a new car. Getting more sleep helps you to make better decisions, financial and otherwise.

It’s a little more clear cut on how your diet will impact your wallet. A restaurant and fast-food diet will drain your paycheck. According to the USDA, a family of four eating moderately at home will spend about $245 per week on food, that’s half of what they’d shell out eating at restaurants. Plan your meals ahead and limit eating out to a reasonable one or two nights a week.

Recent research shows being stressed out leads to all sorts of health issues. It can also lead to overspending. There’s even a name for it, retail therapy. If you are stressed, you look for ways to calm yourself, for some people that means buying themselves a little reward. However, those rewards can add up to hundreds and even thousands of dollars a year.

Taking care of yourself physically, mentally, and emotionally means you are more likely to take care of yourself financially. Spend some time on your needs and goals, including financial ones. Saving money for a big purchase, like a car, means you are less likely to eat out a lot, plus you’ll sleep better at night knowing your money is in order.