Your health is connected to your finances more than you might think. A decline in health can cause a possible decline in your finances: If you are healthy, you are more diligent when it comes to evaluating tasks and making decisions in not only finance but other aspects of your life. While your health affects your finances, the reverse is true and that said, read below to see how health is linked to your finances.
Good Health Allows You to Make Better Financial Decisions
Good health gives you the mental clarity to make better financial decisions. That is why most health experts always insist on the importance of exercising daily, eating balanced diets, and sleeping enough, as this help to make your health better. So, you should always focus on improving your personal health and lifestyle because when you keep the two in check the lesser stress you have. And when you are stress-free you are better placed to plan better and make good decisions. So to say, personal health and financial health are correlated and below is how.
Good Health Increases Your Energy Levels
If you are healthy, especially mentally, it means your energy levels are high. But if you are mentally unhealthy, then this incapacitates your ability to make financial decisions and those affecting other aspects of your life. And poor mental health can have a huge impact on you, from fatigue to poor sleep quality, and difficulty in concentrating on tasks. As such, you might find your productivity and ability to make better financial decisions for yourself hard.
Health Affects Your Life Insurance Coverage Amount
When you are applying for a life insurance policy, one of the things they consider before approving you is your health. The healthier you are, the better the rates and coverage you get. Your health is assessed through a process known as underwriting where you go through a full-body medical examination which might also include a questionnaire. In addition to your current health, your medical health history is also assessed as it also influences your insurance rates. If your medical history and results of your medical examination are not looking good, you will pay high rates for small coverage since you are considered a risky individual, you may even have to opt for no exam coverage. This will affect your finances, especially if you anticipated to pay lower rates.
Depression May Lead to Overspending
Extreme sadness is not only bad for your health but also your finances. When you are going through depression, you might fall into the pit trap of overspending in the name of shopping therapy. When some people are sad, they shop as a way of therapy, and since you are not in a stable state of mind, you might end up buying more than you need to overcompensate. Even worse, you might end up with unnecessary debt accumulated trying to feed your desires. And that makes it worse because debt causes more sadness.
In fact, a study done by the University of Bristol in the UK revealed that individuals over the age of 50 with debt are eight times more susceptible to depression than those without debt. So, whenever you are going through a tough time ensure to find help on time to avoid experiencing financial stress as well.
Diet Affects Your Health Which Affects Your Finances
If you want to stay healthy, then you need to observe your diet and avoid unhealthy foods. Oftentimes, most people prefer eating out, which is linked to poor health since most of the foods you get in restaurants don’t contain the required amount of nutrients. The more you eat in restaurants, the more your health declines, leading to health problems like obesity, heart problems, and so on. The cost of managing these health-related issues is high, and don’t forget that eating out is more expensive than cooking at home.
If you want to strive financially and other areas of your life, then you need to work on your health because it plays a very huge role. Don’t ignore the simple advice from your health physician like exercising more often, eating healthily, and anything else linked to good health. Because poor health might require a lot of money for treatment and this might eat up your savings, and in other circumstances, you might end up making decisions that negatively affect your finances if you are not mentally healthy.