Wealth & Health: Drawing Parallels Between Your Health and Financial Portfolio

Wealth & Health: Drawing Parallels Between Your Health and Financial Portfolio

By Katie Gomez

Self-love and care extend beyond how you treat and care for your physical body; they also extend to how you take care of your finances. That said, just as your fitness in your 40s depends on physical conditioning from your 20s, your financial fitness later hinges on habits formed earlier. Both activities require lifelong diligence to flourish.

Nurturing physical and financial health shares core principles around planning, risk management, expert guidance, and sustained commitment to lifelong growth rather than any final destination. Learn to flex your mental muscles to promote long-term, sustainable growth for your financial future, just as you would flex muscles at the gym for health and longevity. This article will explain the similarities between economic and physical health and how you can take care of both for a happy, healthy, and wealthy life.

Start with Your Goals

Both financial and physical fitness revolve first around the goals you set. In terms of physical fitness, these goals can range from ideal body weight, lower cholesterol or blood pressure levels, getting ready for a marathon, target strength endurance levels, or even just how old you want to live. On the other hand, when it comes to financial goals, those might look more like retirement target numbers, portfolio profit numbers, asset allocation, passive income, etc.

It all starts with a goal, and whatever the intention is behind that goal (whether financial or physical) is what will give you a clear target to shoot for and help strengthen discipline and patience levels along the way. Most find goal setting difficult because it puts them in a lacking mindset, as they compare where they are now to that healthiest, wealthiest version of themselves. If results do not come right away, it is easy to lose steam and get disappointed, but that is where the 1% rule keeps you motivated.

While keeping that big goal in mind, having sub-goals to help you see how to get 1% closer to your goal daily is essential. The 1% rule is about building confidence, stamina, and the habit of consistency. Instead of trying to run 3 miles on the treadmill your first day at the gym, can you power walk for 20 minutes and add to that time incrementally? Even though these sub-goals may seem small compared to your actual goal (running a marathon), these small wins build the confidence and stamina needed to evolve at a safe and consistent pace for each individual. Over the next few weeks, you’ll find yourself too fast for the pace you set and start running, finding more fulfillment as you build on your sub-goals each week to create a steady, satisfying rhythm of progress.

The same goes for your financial health; if you aim to make $10,000 per month in passive income through trading, your first step will be much smaller than you think. Most financial advisors would recommend investing in a program that allows you to use a trading simulator like Trade Ideas to practice and map out strictly how active you would have to be in the market to meet that goal; then, retrace your steps on daily actionable goals from there.

Build Consistency

Sticking with investment savings and growth rate goals to achieve compounding magic will yield positive results, just as someone prioritizes daily movement and mindful eating habits through life’s ups and downs.

However, both physical health and financial health require a bit of patience. Just as someone joining a gym won’t see physical results after one session, someone new to the stock market won’t see the dramatic profit they crave after just one trade or investment. It takes consistent effort, putting in the work, and sticking to your plan and goal, even on the days when you’ve lost all motivation because when motivation leaves (and you don’t quit), discipline arrives.

Tailor Systems to Fit Your Life Realistically

To build consistent financial habits in your life, you have to make them sustainable for you and your current lifestyle, just like you would for your physical health. How much money do you currently have to work with? How much time can you devote to trading, analyzing, and observing the market every day? How much are you willing to invest before dipping into scared money? How much time, energy, and money will you invest in education and programs to help you? Answering these questions might set you up on a different path to your goal or swap it out for a more realistic one.

Discover what you are ready for, and proceed accordingly. If you were focusing on your physical health, that would mean choosing foods and exercises tailored to your current lifestyle, easy to incorporate, and sustainable for the long run, unlike quick fixes or fads. For new investors looking to build their portfolio, they too must avoid the trap of get-rich-quick schemes and the allure of more volatile stocks that will give them that immediate boost. Instead, that first step would look like investing in assets and funds aligning with the risk tolerance level they set for themselves.

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For example, highly active people with demanding jobs may gravitate toward stocks and funds with slightly higher volatility, given their long-term horizon and growth-oriented goals. The added risk poses little danger since they won’t plan to withdraw funds for a while. Conversely, an individual nearing retirement may favor more conservative assets like bonds and dividend stocks that can offer a more reliable income with less price fluctuation. This approach protects their shorter timeline, unable to wait out temporary declines or unpredicted crashes.

Guard Against Disaster

When you’re chasing any goal, obstacles, roadblocks, and even significant challenges are imminent, so instead of trying to pave a perfect road, take the time to prepare for any disasters that may lie ahead.

When constructing an investment portfolio, prudent asset allocation uses different uncorrelated holdings like stocks, bonds, commodities, etc., rather than gambling on just one asset behaving favorably. Geographic diversification also reduces the concentrated economic risk that would devastate an undiversified account. Maintaining adequate cash and insurance coverage plus an emergency fund mitigates unexpected crises stretching finances. Similarly, for fitness, sufficient sleep, hydration, and stress relief build baseline health resilience.

Professional athletes know when to give specific muscles a break to bolster overall durability versus repetitive strain from single sport specialization; yoga improves flexibility to prevent injury for heavy lifters. Additionally, yearly physicals uncover issues early, like tumors or heart conditions, before growing serious.

Accept Inevitable Challenges

No matter how carefully constructed, even the best-laid financial plans and fitness regimes inevitably confront unforeseen obstacles. Illnesses, job losses, and bruising market downturns remain facts of life just as much as injuries, aging, or disease. You have to be willing to relinquish some control and learn to roll with the punches, adapt, and power through.

While it’s easier to succumb to rage or despair when struck by such misfortunes outside our control, the greats accept adversity as a natural part of existence and double down on discipline despite the setback. They stick to savings and investment contributions even through employment uncertainty. They work around physical therapy limitations to maintain cardio habits critical for longevity. They find a way to keep going.

Leverage Experts and Communities

Just as seeking professional advice may maximize returns navigating increasingly complex markets, so can fitness and nutrition coaches tailor advice to our specific physiology and goals. Attempting financial or health self-management often limits the perspective we lack ourselves.

Just as hiring a nutritionist helps keep you on track with your health goals, bringing on an outside financial advisor