We have an obesity problem in the United States.
I’m not talking here about the four out of ten adults who have an excessive amount of body fat (thus risking the shorter life expectancies and increased health problems that a high BMI produces).
I’m talking about the HUGE (pun intended) “financial obesity” problem in America.
Here are four observations about financial obesity:
- Obesity results when you consume too much.
Did you know, at his peak, former Olympian Michael Phelps would eat up to 10,000 calories every day just to maintain weight? But let him continue eating like that today, and the results wouldn’t be pretty.
In the financial realm, “eating too much” is known as over-spending. Just as Michael Phelps has a caloric threshold that’s different from yours or mine, so we all have different spending capacities. To avoid financial obesity, it’s vital that you don’t spend more than you make. Otherwise, you’ll be quickly be weighed down by a dangerous amount of debt.
If that’s your situation, I recommend a financial diet (also known as a “budget” or “spending plan”).
- Obesity results when you exercise too little.
As it does with physical obesity, exercise can you help you guard against financial obesity. What do I mean financial exercise? I mean things like:
- Increasing your earning potential
- Paying off loans ASAP
- Implementing a financial plan
- Reducing wasteful spending
More and more people are hiring personal trainers to help them stay in shape. They meet these fitness experts at a gym or a track to exercise properly and consistently. In a similar way, working with a CFP® professional (i.e., a certified financial planner®) can improve your chances of adhering to a healthy, financial exercise program.
- Obesity often runs in the family.
Obesity often has a genetic component. In the same way, many of our financial habits can be traced back to our parents. We pick up such behaviors almost by osmosis. (As the old saying goes, “More is caught than taught.”)
If the financial examples you got from family members weren’t healthy, be very careful. It’s easy (and common) to unconsciously fall into those same patterns. You’ll have to fight to go in a better direction.
- Obesity is not inevitable, and it is reversible!
Here’s the good news. Financial obesity can be overcome. The road to health won’t be easy. It will involve pain. That’s why it’s critical to start your own financial “get in shape” journey with (a) the reminder that “millions before me have done this,” and (b) the positive attitude of “I can too!”
Do this: Look yourself in the mirror and declare that financial obesity will not have the last word in your life. Then follow the tips above. In time, you’ll have the financial equivalent of bulging biceps and washboard abs!
Another good way to pursue financial health is to know your options—and have a plan—for turning retirement assets into regular retirement income. If you haven’t given that topic much thought I have free gift for you. It’s a short quiz called the RISA (which stands for Retirement Income Strategy Assessment). The RISA can help you figure out the financial strategy that’s best for you in life’s next chapter. Email bmoore@argentadvisors.com to get your link to take this free assessment.
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