Physical and financial fitness and stress

Barbells for Boobs
Barbells for Boobs

Written by Adam Peters, Brickhouse CrossFit morning coach

From the outside, your physical and financial statuses may not seem to be linked other than by the gym membership you pay, but both actually play a significant role in your health.

According to the American Psychological Association three of the top five causes of stress are either health or financially related (5. Poor Nutrition, 3. Health Problems, and 2. Money). So, how is physical fitness and financial fitness linked; simply put, stress. Stress has many well documented negative effects on a person’s health including:

  • Increased cortisol production which can lead to decrease in muscle tissue, decreased immune system, and increased abdominal fat.
  • Insomnia
  • Depression

How do you de-stress or manage your physical fitness? That’s fairly easy; Jay and Amanda have got you covered. But when it comes to your financial fitness what are you doing to work toward your goals, or have you even developed goals? I wanted to outline some easy fixes and ideas that most people don’t do. Doing these six ideas will get your financial fitness in line with your physical fitness.

  1. Financial Fitness is a Long Term Commitment. Becoming physically healthy, committing to going to BHC and eating right takes discipline and sacrifice. Financially there is “no get rich” scheme that works; liken it to all the newest “fad” diets. If it sounds too good to be true it probably is.
  2. Seek Help. To get the best results in the gym you have trusted BHC because they are trained professionals and have advanced designations and training. To get the best results financially you should look for someone who is a holistic planner and has the right designations, a CFP™ is a good place to start. They can help develop and create an efficient plan to reach your goals. Also, on your financial team you should have a CPA and an Estate Planning Attorney.
  3. Target Allocation and Rebalancing. Know what your target allocation is, why it’s important, and how it affects the outcome of your account. Your retirement plan is typically your largest asset, but more often than not they are not allocated properly and are never rebalanced.
  4. Record Your Progress. Just like you record your workouts to track your progress in the gym you should do the same with your financial goals. Schedule regular appointments to review your progress and to reevaluate your situation as time passes.
  5. Know Your Benchmarks. Use them to measure the performance of your allocation model. The S&P 500 in 2013 was up 29.6%. Was your retirement plan up that much? If not, why?
  6. Titling of Accounts and Coordination. Ensure your accounts are properly titled and coordinated with your estate documents. Improper titling can create undesired outcomes, especially if trusts are involved. When was the last time you reviewed who was listed as your beneficiaries?

For most people tackling their financial fitness is a daunting task, but the fixes are typically simple if you know what they are. You’ve taken the right steps to get your physical fitness in check, now get started on the financial fitness. It will help alleviate a ton of stress, your body will thank you and the future you will thank you!