If it seems like the same people that stick to a regular gym routine also somehow manage three side hustles, or that C-suite executives all seem to be triathletes or run some kind of races, that is not a coincidence. Improving your financial fitness requires similar qualities as improving your physical fitness, and mastering one area makes it easier to tackle the other one.
Becoming a Habit Stacker
Consistency is key when it comes to your finances or fitness. According to Atomic Habits author James Clear, a key way to add a habit to your life is to make it easy. In personal finance, that means setting automatic transfers to fund your retirement. In fitness, this means making a daily walk, run, swim, or bike ride part of your morning routine. The more we automate these habits, the easier they become.
Once a habit becomes easy, stacking another habit onto it is a way to add another good habit. By creating a chain of habits one link at a time, we associate a new habit with our established habits to get used to performing it. In practice and related to finances and fitness, this could look like waking up, brushing your teeth and washing your face, going on a run, and coming home to check your net worth balance. Financial habits can also be simpler or the avoidance of disadvantageous habits: Not bringing your credit card on the run so you never buy coffee or just preparing coffee at home immediately after your run can be a habit that is positive for your finances!
Motivation is Fake
Okay, motivation is a real thing, but it ebbs and flows for everyone. There are no individuals bursting with extra motivation beyond the norm. According to Jeff Hayden in The Motivation Myth, the folks that seem to “stay motivated” really just set up routines to stay consistent. High achievers in the fitness and financial realms really just have the best boring routines.
The fact that we all have the same motivation overall can be scary because it means that our lethargy is not holding us back; it is simply poor habits that prevent consistent routines. Everyone experiences low motivation days. I am having one right now, but I am still writing this article! Folks with consistency just have a plan to handle those days. For me, I have my minimum workouts and minimum tasks that need to be accomplished on any particular day—bad ones as well as the ideal ones.
Individuals who understand that motivations fluctuate know that if they cannot get through their 45-minute workout, even 30 minutes is still better than the couch. If they cave and decide they absolutely cannot cook dinner and need to pay to get takeout, they at least opt to go to the place where they have a gift card or a half-off coupon so there is minimal budget disruption. And they do not feel guilt over those choices! Having minimum habits for the rough days is what keeps you healthy financially and physically overall, and accepting the need for those minimum days from time to time keeps you mentally healthy as well
Getting Fit and Wealthy
Say your habits start and end at brushing your teeth each day. The idea of habit stacking and developing consistency can be daunting. Here is the good news: If you can stick to fitness goals or financial goals, you can ultimately accomplish both. Plus, brushing your teeth technically counts as a healthy practice, so you already have one healthy habit! From there add something small, like walking for 15 minutes a day. When it becomes easy, you proved that you can create habits. Now, save $100/month (or $3/day if that feels easier) in an emergency fund.
One fun aspect of financial and fitness habits is they can often overlap, allowing you to cash in and receive health benefits simultaneously. This is helpful because if one of those themes (health or wealth) inspires you more than the other, you can still receive positive results in both categories. While I have grown my own healthy habits substantially, wealth motivates me more, and I find the effort to build wealth less negotiable. When I still worked in an office, I used this to my advantage. I had a spreadsheet and made sure I kept my metro fees to less than $100/month despite commuting to and from the office five days a week and going to rugby practice two evenings a week. This meant I had to run the 4.6 miles to or from work 2–3 times a week to make the math work. I improved my cardio and kept my commuting expenses down.
Larger decisions that hit fitness and finance goals simultaneously include choosing to buy a bike instead of a car and then biking everywhere that is not within walking distance. The exercise commute is a terrific health and wealth habit! (On a smaller level, I run to the college practices for the rugby team I coach to save a little gas and parking money.) Joining a yoga class every Thursday after work instead of attending the weekly happy hour may be another choice that saves you some money and gets you healthier. If you worry about spending money on rich food or alcohol due to staying out late on Friday or Saturday night, join a morning tennis league or run group to get exercise and camaraderie while spending less money. It is amazing how often healthy habits make us wealthy!
We Each Have Personal Preferences
Personal finance is personal, and our fitness choices are no different. Not everyone reading this should opt to tackle their friends for fun three times a week like I do. Not everyone should invest in real estate. Not everyone reading this should run literally every day until they exceed a 2,000-day run streak like Patrick. Not everyone chooses Roth as the better 401(k) option for them. And that is okay!
When it comes to fitness or finance, you have to make decisions that are right for you. In both, you have to weigh your risk tolerance: Some folks will play rugby over age 30, just like some folks will opt to participate in venture capitalism. Others will go on bike rides over flat courses, just like some will invest entirely in index funds. The right choice given your risk tolerance will not be the same as someone else’s choice because it is your personal choice.
However, there is one choice that we all should make. Choose to be healthier and wealthier. Add a new habit to improve your fitness or build your wealth today.
Comments