Manage Your Finances Like Your Health
“Considering I’ve been dead for sixteen years I’m in remarkable health.” - BORN YESTERDAY (1950)
written by Albert Mannheimer, directed by George Cukor
(3.5-minute read)
I’m going to make a crazy assumption and say that we’ve all done something to improve our health at some point in our lives. This could involve losing weight, gaining muscle, increasing cardio, eating healthier, and you get the idea. What propelled us to take action?
Did you see a friend or loved one who inspired you? Maybe you noticed someone else who was healthier and happier and you thought you’d like to have a piece of that healthy pie. Perhaps you grew up in a household where healthy living was commonplace. For some, turning a certain age can light a fire.
We know it’s a good idea to be healthy but, for some reason, many of us put it off for extended periods of time. We know the benefits: better sleep, more energy, increased brain activity, good for the heart, longer life expectancy, etc. We know this! So why do we avoid it for so long?
I’m not a psychologist so I’m going to avoid answering that question. But this got me thinking about our personal finances. There are similarities to living a healthy lifestyle and living a healthy financial lifestyle.
I’LL GET TO IT LATER
We know the benefits of managing our money properly: less stress, sustainable career, increased investments, comfortable retirement, homeownership, vacations, higher education, leaving money to others, etc. We know this! So why do we put our personal finances on the back burner?
It often never seems that important since we know, with relative certainty, that our money will still be there tomorrow. There is often this feeling of “I’m doing fine, so why bother?” If your life seems good enough then why would you want to spend time, energy, and money to fix something that you don’t believe is broken?
There’s also no immediate gratification when we properly manage our money. You can start to see results from exercising within a week, maybe sooner. But when we set up our finances correctly, the payoff doesn’t come for awhile. It could take months, years, or even decades to see the results.
If you have gotten your financial life in order, or are living a healthy financial lifestyle, what was it that made you take action? Some people grew up in a household where managing their money was talked about, but most people didn’t have such an upbringing. Perhaps you saw a friend or loved one who had their stuff together. For some people, turning a certain age can trigger them to take a closer look at their finances. Do these sound familiar?
So what will motivate you to start living a healthy financial life? A new job? A birthday? A friend? Your future self?
WE DON’T KNOW WHAT WE DON’T KNOW
While the similarities between health and finance can be obvious, the reasons for starting can have one major difference. We can be motivated to go to the gym. An inspirational quote, or person, is sometimes all we need. Perhaps the motivation is seeing our cholesterol levels.
But there’s one roadblock that can keep people from focusing on their finances: knowledge. I’m not saying that healthy living is easy to understand for everyone. Every body is different so what works for your friend may not work for you. But the concept of burning more calories than we consume is easier to grasp than the tax code, for example. With our finances, there are so many moving parts like taxes, investments, savings, budgeting, retirement, wills, trusts, loans, debt, and insurance that it can stop people before they start.
HELP IS ON THE WAY
Luckily, we have professionals who can help us. For healthy living, there are personal trainers, nutritionists, and doctors. For our finances, there are financial planners, advisors, accountants, and attorneys. Please note, as I’ve written HERE, life insurance is NOT a financial plan!
Hiring a Financial Planner doesn’t have to be expensive. Similar to a personal trainer, you can discuss your most immediate pain point and work on that. There are Financial Planners who are happy to help with a single issue. I’m one of them.
One final thought: you can’t be forced to become financially healthy, and you can’t force others. You have to do it when you’re ready. Unfortunately, most people should have started years ago. But that’s okay too! Whenever you’re ready is the right time. Hopefully it’s sooner than later.
If you’d like help with your personal finances, you can schedule a complimentary meeting HERE.
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