Few of us like to be told what we're doing wrong. We're not eating a healthy enough diet, not getting enough exercise, not drinking enough water. The list goes on (and on). The fact is, we know where we fall short but don't always have the motivation to make big changes.
But what would you say if someone told you that even small changes could make you healthier while also putting more money into your savings account?
You could earn more
A Journal of Labor Research study found that people who exercise regularly earn 6% to 10% more than their colleagues. But here's the deal: The researchers defined regular exercise as getting at least 20 minutes of physical activity at least three times a week. That's only 60 minutes a week.
You don't have to enter bodybuilding contests or run marathons to benefit from exercise, although the more you put into it, the higher the potential benefit. According to the study, there is a correlation between how hard you exercise and how much more you earn. The findings broke down like this:
- Study participants who engaged in low-intensity workouts earn an average of $54,000 annually.
- Participants who engaged in medium-intensity workouts earn an average of $67,000 annually.
- And participants who engaged in high-intensity workouts bring in an average of $83,000 annually.
It's natural to wonder if higher-income individuals are naturally predisposed to pushing themselves in all areas of life. It's also natural to ask if higher-income individuals have more control over their time and whether having more control gives them the time they need to hit the gym or pilates studio.
You could save big in retirement
Exercise can save you money when you need that money most. According to a New York Times article from 2021, "People who start to exercise before or during middle age typically save from $824 to $1,874 annually on healthcare costs after retirement."
Let's split the difference and say a person saves $1,300 a year on healthcare costs thanks to small changes made to their exercise routine and diet. If they retire at age 66 and live to 86, that's an extra $26,000 they could have invested, saved, or simply left behind to cover funeral expenses.
More importantly, you're more likely to make it to retirement. According to a Rutgers University report, people in poor health die at a relatively young age. In fact, many don't live long enough to collect the Social Security and pension benefits they spent their entire adult life working for.
And again, small changes can make a difference. A University of Michigan study found that something as simple as eating a hot dog can cost you 36 minutes of a healthy life, while choosing to eat a serving of nuts can help you gain an extra 26 minutes of healthy life. The healthier you are, the less money you'll shell out for medical care and the more you'll have to spend the way you want.
Small changes add up
Any time you make a change in life, it's the details that matter. Here's a sample of how much you can save by altering a handful of the thousands of decisions you make in the average week.
| Change | Average Weekly Savings | Annual Savings |
|---|---|---|
| Save $4 a day currently spent on junk food or alcohol | $28 | $1,456 |
| Substitute healthy alternative protein sources (like beans, lentils, peanut butter, chickpeas, and quinoa) for meat twice a week | $10 | $520 |
| Exercise outdoors or at home using a streaming service instead of paying for a gym membership | $9.23* | $479.96 |
| Grocery shop on a full stomach | $10 | $520 |
| Split a single large portion into two meals at least twice a week | $10 | $520 |
| TOTAL | $67.23 | $3,495.96 |
Data source: Author's calculations. *The author used an average cost of $15 per month for streaming service and $55 per month for a gym membership.
By adding the total of small changes ($3,495.96) to how much a person would save by eliminating a $7-a-day smoking habit ($2,555) and trading two fast food meals per week for home-cooked ones ($520), we end up with a total potential savings of $6,570.96. That could be a significant boon to your personal finances.
Some of these changes may fit perfectly into your routine, and some may not be quite right for you. Ultimately, the goal is to come up with a list of small changes you can stick with -- changes that will leave you healthier and perhaps a bit wealthier.
