The link between financial well-being and physical wellness is clearer than ever in the fast-paced world of today.
The purpose of this article is to present a thorough understanding of this complex relationship and emphasize the need of implementing preventative measures in order to ensure long-term security.
Recognizing the Connection
Stress related to money can harm our physical well-being and result in a variety of problems, including chronic illnesses, anxiety, and insomnia. Similarly, low physical health can financially burden finances due to higher medical costs and lower productivity at work. Acknowledging this interdependence is essential to implementing a comprehensive strategy for overall wellness.
How Financial Stress affects your Health and Vice Versa
Financial Stress
Financial stress is the emotional and psychological strain arising from financial problems or uncertainties.
Causes: It can stem from various factors such as debt, job loss, inadequate savings, unexpected expenses, or economic instability. Individuals and families may experience financial stress when they perceive a gap between their financial resources and their lifestyle demands.
Impact of Financial Stress on Health
Mental Health: Persistent financial stress is strongly linked to mental health issues, including anxiety and depression. The constant worry about making ends meet or dealing with debt can contribute to heightened stress levels.
Physical Health: Chronic stress has been associated with a range of physical health problems, including cardiovascular issues, sleep disturbances, and compromised immune function.
Behavioural Responses to Financial Stress
Unhealthy Coping Mechanisms: Some individuals may adopt harmful coping mechanisms, such as excessive alcohol or substance use, overeating, or neglecting self-care, as a response to financial stress. These behaviours can further exacerbate health problems.
Reduced Access to Healthcare: Financial Barriers to Healthcare: Individuals facing financial stress may delay or avoid seeking medical attention due to the cost of healthcare services. This can result in undiagnosed or untreated health conditions, leading to more significant health issues over time.
Job Performance and Productivity
Impact on Employment: Financial stress can affect job performance and may even lead to job loss in extreme cases. The loss of employment not only exacerbates financial stress but also disrupts one’s sense of security and stability, impacting mental health.
Vice Versa: How Health affects Finances
Medical Expenses: Poor health can lead to increased medical expenses, including doctor visits, medications, and possible hospitalization. These costs can contribute to financial strain, especially if the individual does not have adequate health insurance coverage.
Work Productivity and Income
Reduced Productivity: Health issues can result in decreased work productivity, absenteeism, or the inability to perform specific job functions. Financial stress may then be exacerbated due to lower income or job loss.
Breaking the Cycle
Financial Literacy and Planning: Improving financial literacy and implementing effective financial planning strategies can help individuals mitigate financial stress. Understanding budgeting, savings, and investment can contribute to a sense of control and security.
Practices for Health and Well-Being: In a similar vein, embracing a healthy lifestyle, learning stress-reduction strategies, and promptly seeking medical attention can enhance both physical and mental health by interrupting the vicious cycle of stress and its negative effects on finances and health.
Proactive Financial Strategies
Financial Planning and Budgeting for a Secure Future
The first step toward securing your financial future is to create and stick to a budget. Goal-setting, tracking expenses, and making decisions are all included in this section on the practical aspects of budgeting. A well-structured budget acts as a roadmap for obtaining financial stability.
Investment and Savings Tips for Long-Term Stability
Long-term financial stability depends on having a solid savings and investing plan. From determining your risk tolerance to researching various investment options, this section offers helpful advice on accumulating wealth and guaranteeing a secure financial future. Continue Reading…
Here is a quote by Charlie Munger, vice chairman of Berkshire Hathaway, Warren Buffett’s business partner.
“The first $100,000 is a bitch, but you gotta do it. I don’t care what you have to do — if it means walking everywhere and not eating anything that wasn’t purchased with a coupon, find a way to get your hands on $100,000. After that, you can ease off the gas a little bit.”
Right now, my portfolio is over $500,000 but the first $100,000 were the most difficult to get because, of course, I started with $0, in a foreign country (Canada), with no family connections, no intergenerational wealth, no nothing.
Since I arrived in Canada, I have been a janitor, a busboy, a waiter, an Uber driver, a cleaner, a dance teacher, an insurance salesman, a photographer, and a website designer.
If you are a low earner, like me, you can only save $100,000 through a lot of discipline, sacrifices, perseverance, and the right mindset.
Most people, even those earning $100K per year, will never accumulate this amount of money. I feel extremely privileged to have arrived and surpassed this milestone.
I am the kind of person who believes that wealth is available to all of us and if we want it, all you have to do is to reach out and get it.
My biggest teacher in almost any entrepreneurial endeavour has been YouTube. My college education was not a complete waste, I get to go around and tell people that I have a college education, but for any practical purpose, it was useless.
You don’t need a fancy degree from any college to build wealth. Even now, I am teaching myself website design via YouTube.
Having the goal of saving $100K
Goals can also help to look toward the future and keep saving efforts in check. The more money you can save, either from reduced expenses or increased income, the faster you can move toward accumulating your first $100,000. And once you do that, the way to the next $100,000 becomes easier.
Having the right mindset
To save $100K you need to train your mind. Keeping your particular goal in mind can help, but you also need to understand how to achieve your goal with a plan.
From strategic moves in real estate to the expansion of businesses, twelve seasoned professionals share their stories of how calculated risks have shaped their wealth-building journeys.
Spanning from lessons learned in real estate investing to calculated risks propelling business expansion, these insights delve into the pivotal decisions that can make or break financial growth. Discover the risks that reaped rewards and the wisdom gained from taking chances in the world of investment and entrepreneurship.
As a successful real estate investor, taking calculated risks plays a big part in my wealth-building journey, but it’s not something I’ve done well from the beginning. For example, the first property I ever invested in was an old house that ended up having a lot of issues, like animal infestations.
Clearly, I took a poorly calculated risk by buying that property because I wasn’t aware of the problems before investing. But it did help me learn an important lesson: Taking risks becomes a lot more manageable when you’ve done your research and understand the magnitude of the risks involved. If you go in blind, like I did that first time, it’s much harder to make smart decisions.
Thankfully, I did end up earning big returns on that property (and properties I’ve invested in since), so the investment did pay off. And now, I always do my research before signing on the dotted line to help minimize risk. –– Ryan Chaw, Founder and Real Estate Investor, Newbie Real Estate Investing
Successful Shift to Hotel Investments
As real estate investors, my husband and I take calculated risks regularly. The biggest risk we took was transitioning from apartment complexes to hotels six years ago. Moving into a completely unknown industry was an enormous risk, since our entire knowledge base and experience was around long-term rentals. Hotels go beyond rentals; they are a section of the commercial real estate market; they are full businesses with significant demands around 24/7 daily operations.
Our decision to move into this market was driven by reduced ROI in the multifamily space, and we sought a more profitable investment opportunity. This transition wasn’t just about moving into a completely unknown industry; it also required us to place trust in a business partner because, in order to secure financing, we needed to demonstrate an experienced operator who could soundly manage the hotel.
The risk paid off. This particular hotel has consistently delivered high returns: even during the pandemic. It’s led to additional hotel acquisitions and a strong friendship with our hotel operator partner. We’ve built up our expertise in the hotel industry through our experience with this first successful hotel, expanded, and gained a solid understanding of what it takes to run hotels profitably.
We’re exploring international opportunities. All because we took a calculated risk six years ago and moved into hotels. That initial leap of faith opened doors we never could have imagined at the time. –– Nic Stohler, Creator, Nic’s Guide
Daily Risk-Taking yields Flipping Success
I take calculated risks every day in making offers on properties that I’m going to close on and list, or close on and flip. This risk comes in many forms, such as often not having 100% of the information from a seller, not knowing where the market is going to be a couple of months from now, or simply having a project run longer than expected.
These calculated risks that I take daily have helped tremendously in the wealth-building journey, as I’ve been able to complete some very successful flip projects, such as one I purchased last year for $460,000. In this scenario, I opted for the seller to finance me 80% of the purchase price; it was a hoarder house, and I didn’t really know where the market was going to be by the time we finished.
Fortunately for us, by the time we listed it three months later, we were able to get 20 offers and sell the property for $770,000. — Sebastian Jania, CEO, Ontario Property Buyers
Investing in Personal Digital Brand Growth
They say insanity is doing the same thing and expecting different results. Building wealth is rarely easy and requires some level of risk. This year, I risked spending dozens of hours and thousands of dollars to grow my digital brand.
To most people, pouring a lot of energy and money into a business that isn’t guaranteed success is scary and irrational. However, I took the risk anyway because I’d already spent years learning different skills and believed in what I was doing. Despite spending thousands of dollars, my business is now profitable after taxes and expenses.
Even if my business had failed, I would’ve gained invaluable experience I could use toward my next investment. Building wealth can be risky, but you can reduce your risk by taking the time to understand your investment and assess your risk tolerance.-– Chris Alarcon, Journalist/Owner, Financially Well Off
Authenticity drives Startup’s Viral Growth
As an entrepreneur trying to grow a personal finance startup, risks are inevitable. However, one risk that I took early on that paid off immensely was getting vulnerable and sharing my personal story so openly.
Deciding to base my entire brand voice and messaging around my own memoir was risky. I shared details about my failures and shortcomings during my debt repayment journey: not ideals I thought people might want to hear about. But I knew if I only showed the highlights, it wouldn’t be authentic or establish trust. I had to risk being judged or dismissed to remain genuine.
It ended up paying off hugely. By bravely recounting even my toughest setbacks on my blog and social platforms, readers connected with my transparency. They saw themselves in my story. This drove immense word-of-mouth growth for My Millennial Guide in those early days when marketing budgets were non-existent.
Had I played it safe and kept my journey vague and surface-level, I doubt my message would have resonated so strongly. I’m grateful every day that I took the risk to stay true to my vulnerable, unconventional backstory: it fueled my wealth-building journey tremendously. — Brian Meiggs, Founder, My Millennial Guide
Life is all about risk, and your wealth-building is an area that’s no different. Over the years, I’ve taken plenty of risks that have helped me grow my wealth.
One of those is investing in a local comic convention. I saw them make a call for investors to seed some of the celebrity stars they were looking to bring in. This seemed like a great opportunity to invest but also a risky proposition. Thoughts of “What if the stars don’t pan out?” or “How will this impact other opportunities?” flooded my mind.
Thankfully, I took the risk, and it’s paid off not only in my wealth but also in the relationships that I have built. Due to the investments, I’ve received annual returns and opportunities to see new investment opportunities through the people I’ve met. –– Joseph Lalonde, Leadership Coach and Author, Reel Leadership
Google Ads Gamble secures Clientele
I took an $8,000 risk that led to my financial success. When I started my content writing agency in my twenties, I had about $8,000 in my bank account. I knew it would take a while to gain traction and find writing clients, so I took a risk.
I invested $1,000 monthly into Google Ads in an effort to get clients. I gave it my all and knew that if I couldn’t find a new, high-paying client within the next eight months, I’d have to return to my 9-to-5 job.
Fortunately, this risk paid off because I got my first client after four months, and by month six, I filled up my schedule. Because I took this calculated risk early on, I can now live a comfortable life and travel the world.— Scott Lieberman, Owner, Touchdown Money
Toronto Condo purchase defies Market Pessimism
Living in one of the most expensive housing markets in the world means hearing a lot about a supposed real estate bubble. For decades, people in Toronto have claimed we’re on the verge of a mega-correction, and because of this, I’ve watched friends stay out of the housing market; for some of them, it’s now too late to buy in.
It’s a good lesson not to let unwarranted negativity seep in. Continue Reading…
As retirement approaches, you ask yourself if you should work after retirement. Here’s a list of pros and cons to find out which path is right for you.
Image courtesy Arista Reality Group
By Dan Coconate
Special to Financial Independence Hub
Retirement is something we dream about. After years of hard work, we look forward to a slow life. However, for many people, the thought of stopping work altogether can be a little daunting.
There’s a big question looming over your head: Should you work after retirement? Find out the pros and cons to make an educated decision.
PRO: Mental Stimulation
Many older individuals discover that they thrive on the challenge and stimulation that work provides. This is especially true when the work involves using skills and experience, as it adds a sense of fulfillment and purpose to your life.
Engaging in such work will keep your brain sharp to enhance cognitive abilities as you age. You can feel fulfilled while reaping the benefits of an agile mind.
CON: Reduced Free Time
The beauty of retirement is the substantial freedom to spend your time as you wish. However, a new job may limit your abilities to embark on new hobbies, travel, and spend time with loved ones.
If you want to pursue a job during retirement, be sure to select a position that’s part-time and flexible. This will ensure that you have the free time you deserve to partake in the activities you desire.
PRO: Extra Income
It’s no secret that with a job comes additional income. While you most likely have a retirement fund arranged, a little extra money can go a long way.
Extra income can contribute to new hobbies, traveling, and treating your family with gifts. But that’s not all it’s good for.
The big question when buying a retirement home is how you will fund the endeavour. Purchasing a house is a costly investment, even if you’re planning to downsize. An additional income can cover portions of mortgage payments, property taxes, and maintenance costs for a more manageable investment.
CON: Social Security Benefits
While the additional income earned from working post-retirement can be advantageous, remember that it may impact your Social Security benefits. In certain circumstances, the Social Security Administration might reduce your benefits if you earn above a specific limit while receiving monthly payments. This could mean that they withhold a portion of your Social Security benefits.
PRO: Social Interaction
Retirement brings about one of the most significant changes: the loss of daily social interaction. Many individuals struggle to adapt to the sudden absence of colleagues and feel a sense of missing out. Continuing to work after Retirement lets you enjoy the much-needed social connection and fostering of new friendships. Continue Reading…
Yet another year has gone by. With 2023 behind us and 2024 on the horizon, it’s important to take stock, set goals, and make plans – keep steadfast in your quest for long-term financial planning and wealth management success.
In 2023, I shifted my focus to keep some core financial planning principles at the forefront of your mind. These principles are timeless and are a good touchpoint for whenever your financial resolve starts to soften.
Let’s look back at these timeless financial tips from 2023…
Let’s talk about the price of stocks. To make money in the market, you need to sell your holdings for more than you paid. Of course, we’re all familiar with good old buy low, sell high. But despite its simplicity, many investors fall short. Instead, they end up doing just the opposite, or at least leaving returns on the table that could have been theirs to keep.
You can defend against these human foibles by understanding how stock pricing works and using that knowledge to your advantage.
In investing and life, information overload, aka “noisy news,” has long been a thing. In fact, before the Internet came along, I used to publish a hardcopy newsletter called “Rising Above the Noise.” Because even then, investors seemed awash in TMI (too much information).
If media noise was a problem back then, imagine the implications today. Which brings me to today’s Play It Again, Steve – Timeless Financial Tip #2.
To be a successful investor, it’s as important as ever to dial down all the noisy news you invite into your head.
I would be remiss if I didn’t dedicate at least one post in my “Play It Again, Steve” series to everyone’s least favourite, but still significant topic: taxes. It’s a good thing there’s no tax on writing about tax planning; if there were, I would surely owe a lot.
Read about these six timeless techniques for reducing your lifetime tax load.
So, what’s really going on inside your head as you make critical decisions about managing your money? By considering this pivotal question each time you’re tempted to react to the latest news, you stand a much better chance of being the boss of your investment outcomes.
There are countless external forces influencing your investment outcomes: taxes, market mood swings, breaking news, etc.
Let’s look inward, to an equally important influence: your own financial behavioural biases.
If I could, I would grant amazing investment returns to every investor across every market. Unfortunately, that’s just not how it works. In real life, we must aim toward our financial ideals, knowing we won’t hit the bullseye every time.
That’s why I recommend evidence-based investing: or investing according to our best understanding of how markets have actually delivered available returns over time, versus how we wish they would. Our “best understanding” may still be imperfect, but it sure beats ignoring reality entirely.
I’ve spent my entire career railing against the dangers of market-timing — i.e., dodging in and out of markets based on current conditions. But there is a time when “timing” of a different sort matters. I’m talking about your investment time horizons.
Your driving force for when to invest — and stay invested — is ideally based on the timing of your own spending plans, rather than external market moves. Let’s look at how to use your personal time horizons to successfully separate today’s spending from tomorrow’s future wealth.
Retirement isn’t the only reason to set aside current income for future spending. But since it’s usually the elephant in the financial planning room, it’s worth a Timeless Tip of its own.
Essentially, this is what retirement planning is all about:
By being thoughtful about how to save and invest toward retirement, you can best sustain, if not improve your ongoing lifestyle: especially once your prime earning years are over.
If you are walking the line between investing, spending, and your investment time horizon, check out these 6 ways to leverage lifelong financial planning, so you can retire on your own terms and on your own timeline. Continue Reading…
Posted By 
By Matt Guenther
