Why Personal Finance and Physical Fitness Are More Closely Linked Than You Think

I do get asked the question alot: What is FITFI?

I actually came across the FITFI term through MadFientist’s 49th Podcast, where he talked about how he regretted putting off his health and happiness while trying to hit FI. There is also a whole Reddit thread dedicated to FITFI.

Essentially, the FITFI community refers to financially independent minded individuals who are interested in physical & emotional health and fitness, and overall well being & happiness.

What do personal finance and physical fitness have in common?

At first blush, people do not typically associate personal finance to physical fitness, even though these tend to be two very important factors to living life to the fullest.

I personally believe that many of the traits that make someone good with money are also the ones that make someone good with fitness. Saving money instead of making impulse purchases, working out when you could be watching Netflix, and choosing healthier eating choices over junk food make a huge difference down the road.

We all know that without setting a clear goal and focusing on pursuing it, it would be difficult to get the results you want in the gym. Just observe any personal trainer getting to know their client for the first time – the first session is built around establishing a goal and focusing on that goal:

• What is your fitness goal?

• What is the time frame that you are working with?

• What are you willing to do to get there?

• What are you willing to sacrifice to get there?

In the same way, how we think about our personal finances should be the same. Consider the following:

• How much in assets are you looking to have?

• What is the timeframe for you to achieve this goal?

• What is the income/revenue you need to generate to get there?

• What are the expenses?

• How much are you setting aside for your emergency fund, before you invest?

As a Gerontology student, I also believe that if one does not take care of their health, it would indeed be costly in the later years. The number of elderly who wish that they took care of their health and finances much earlier on in their lives is sobering. That for another post.

Now with that said, what do money and muscles have in common?

I liken achieving financial fitness goals to physical fitness goals, and here’s why:

1. Both require time and sound knowledge of the basics

Just as you don’t get physically fit and limber in just a day (or even a month), it’s the same with your finances, unless you are bestowed with a windfall. In the same way, just as you should not jump into attempting to do 80kg deadlifts because you would almost surely injure yourself without prior training and knowledge, you should not jump into taking finance advice without knowing the basics. Good things take time (as with compound interest), which brings me to my next point.

2. Both require self-discipline

In the wise words of Theodore Roosevelt,

Theodore Roosevelt

“Nothing in the world is worth having or worth doing unless it means effort, pain, difficulty… I have never in my life envied a human being who led an easy life. I have envied a great many people who led difficult lives and led them well.”

Just as it takes daily discipline to get your fitness levels back up, it also take discipline to whip your finances into shape. Junk food for your body is akin to easy credit card debt for your finances: tempting, but eventually bad for you.

Your abs don’t just show up just by you sitting there; it also takes self-discipline to educate oneself, and also further self-restraint to not be reckless with money. You literally will not get anywhere by resting on your laurels while waiting for time to pass you by. In many ways, for both embarking on your personal finance journey and your fitness journey, sometimes the hardest part is taking the first step.

3. Both require patience

As the old adage goes, Rome was not built in a day.

Likewise, your abs were not built in a month (or in some cases, years).

And for your finances? Unless you have rich parents or struck the lottery, your wealth would take time to build. Businesses need time to grow. Investments need time to grow. If you’re in debt, it will take time for you to get out of it.

It takes patience and sticking to the course. Just as how it’s probably not wise to pop a pill that promises you a greek god physique (even if there is such a product in the first place, I would be wary of it), it’s also wise not to go for get-rich-quick schemes.

Similarly, building wealth takes patience. While this may seem painfully obvious, we often spend money once we make it. The cornerstone of millionaire mindsets, as we have seen from the Marshmellow test, is delayed gratification.

4. Calories-in, Calories-Out Has the Same Principles as Money-in, Money-Out

Just as how we think about calories-in, calories-out, the same principles apply to knowing how you much your income is, and how much you are spending on a monthly or annual basis. At the very basic level, have a clear view of how much money is going in and out every month.

5. Both Involve Delayed Gratification

In today’s world of instant gratification, I personally believe that delayed gratification could indeed be more gratifying than constantly looking to get what we want right here, right now. Saving money instead of making impulse purchases, working out when you could be watching Netflix, and choosing healthier eating choices over junk food make a huge difference down the line.

6. Both Benefit from the Compounding Effect

Now, we are mostly familiar with the impact of compounding interest when it comes to money. Fitness and nutrition is the same way, and this gets increasingly apparent as one gets older. The effect of working out properly and eating well make a huge difference over the years, and it shows. Small wins lead to big wins later on down the road.

In the wise words of Mr. Spock, Live Long and Prosper.

Thanks for reading! If you can think of other similarities between fitness and personal finance, please share below in the comments.