Personal Finance

7 Golden Rules to Stay Healthy & Wealthy

So many people spend their health gaining wealth and then regret later to spend their wealth regaining health.  Sounds true ? In this 9-7 office work hour routine, when most of us are busy impressing our boss, yearning for the next promotion or aiming for the yearly bonus,thinking about the two critical pillars of our life – Health and Wealth seems far-fetched.  However, while earning money is important, looking after our health and making our money work for us is equally important too.

Hence, we would like to share with you 7 open secrets to stay Healthy and Wealthy for our happiness and overall well-being.

Early Start:

We know the old saying “Early to bed, early to rise makes a man healthy, wealthy and wise”. It’s true. All of these benefits of waking up early fuse together into one great benefit – the benefit is possibly living a longer, healthier life.Waking up early may be hard but with baby steps, even if it’s just waking up 15 minutes earlier to start with – you can start improving your quality of life.

Starting investing early in life has numerous benefits. The eighth wonder of the world – power of compounding works in your favour when you start early.  Further you have the ability to take higher risk to generate higher returns,  your spending habits improve and you take a step ahead of everyone else. All of these benefits of investing early fuse together into one great benefit- creation of higher wealth and keeping you on track to achieving your goals.

“I made my first investment at age 11. I was wasting my life up until then”- Warren Buffett.


 

Balanced:

A well-balanced diet provides the right vitamins, minerals and nutrients to keep the body and mind strong and healthy. Eating well also aids in the prevention of a variety of diseases and health problems, as well as helping to maintain a healthy body weight, providing energy and promoting a general feeling of well-being.

There are many important decisions one must make when deciding how to invest. Many people tend to focus on picking the right stock or getting into the market at the right time. However, perhaps the most important and often overlooked decision is an investor’s asset allocation.
Asset allocation is the process of balancing risk and reward by apportioning a portfolio’s assets such as stocks, bonds, real estate, cash and bullion according to an investor’s goals, risk tolerance and investment horizon.

“Do not put all your eggs in one basket”- Warren Buffett.


 

Regular:


Regular exercise is necessary for physical fitness and good health. It reduces the risk of heart disease, cancer, high blood pressure, diabetes and other diseases. It can improve your appearance and delay the aging process.

SIP(Systematic Investment Plan)  can help inculcate the habit of regular saving by automatically deducting a predetermined amount from your bank account at a pre-set date and investing it in a mutual fund scheme.  The biggest advantage of SIP is discipline that it puts in your investment as the pre-decided amount gets deducted from your bank account at regular intervals on its own.

“Someone is sitting in the shade today because someone planted a tree a long time ago”- Warren Buffett.


 

Experts:

A medical specialist (expert) is most important while seeking care for a specific systemic illness or health issue. For example, heart diseases can be treated with the care of a cardiologist while brain disorders may require the advice from a neurologist.

However, when it comes to taking advice on ‘finance’ – one of the most important matters of our life our beloved uncle who is also an insurance agent becomes our insurance advisor, our Chartered Accountant becomes our wealth manager, our friends who just made money from a ‘hot stock tip’ becomes our share market advisor. Hence, we absolutely forget the need of the most important and relevant of all – a Certified Financial Plannercm for our Financial Planning.

Unfortunately in India, the financial service providers often focus on providing commission based recommendations. They are not bothered about providing knowledge to their customers to help them manage their money for financial well being. Hence, we need financial experts who can give solutions considering one’s over all needs, attitude, life style, risk tolerance and financial situation. Transparency and honesty are the main aspects you must consider while selecting a financial planner for yourself.

“An expert is someone who knows some of the worst mistakes that can be made in his subject and how to avoid them” – Werner Heisenberg.


 

Patience:

When anger kicks in, our body readies itself to respond to a perceived threat. Our muscles tenses, our digestive processes stopsand certain brain centers start firing in ways that alter our brain chemistry. These functions reflect our genetically coded response to danger. Being calm to safeguard our health from the deadly effects of anger is simple recipe for our well-being.

In the field of finance, investors face information explosion owing to internet. Fortunately, in the field of finance, the less is better for becoming a successful investor. Diversify broadly, keep costs low, rebalance periodically and be patient. Patience is more important than anything else — which explains why most investors don’t achieve the returns that the market freely offers.

“The stock market is a device for transferring money from the impatient to the patient.”- Warren Buffett


 

Protection:

Vaccinations throughout your life to protect against many infections. When you skip vaccines, you leave yourself vulnerable to illnesses. Like eating healthy foods, exercising, and getting regular check-ups, vaccines play a vital role in keeping you healthy. Vaccines are one of the most convenient and safest preventive care measures available.

Insurance is probably the most critical, and yet the least seriously dealt with aspect of financial planning. Though most of us take life insurance or health insurance covers, but the amount of cover is usually not adequate. While buying life insurance, you need to consider the immediate, future and living expenses that your family might have to incur in case a tragedy strikes you. You should not mix insurance and investment. Hence, the right strategy is to buy pure term insurance with adequate cover. Looking at the increasing medical costs, one should also plan to take health insurance for each member of the family. Critical illness insurance, personal accidental insurance and property insurance should also be a part of every individual’s insurance portfolio.

“Insurance your best bet against uncertainties.”


 

Periodic Review:

Regular health checkup and tests can help to detect problems before they occur. They also can help find problems early, when your chances for treatment and cure are better. By getting the right health services, screenings, and treatments, you are taking steps that help your chances for living a longer, healthier life. Your age, health and family history, lifestyle choices (i.e. what you eat, how active you are, whether you smoke), and other important factors impact what and how often you need health checkup.

Keeping a regular eye on your personal finances will help you make the most of your money. Reviewing things like your goals, bank accounts, loans, insurance, savings, and investments will also help make sure they’re still right for you. It will also alert you early to potential financial problems.

“When you do periodic financial reviews, keep in mind the most important variable in the situation: You!”- Douglas Goldstein

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