We all know that having low-cost index funds, owning real estate, taking advantage of dividend growth investing, prioritizing financial literacy, and selling intellectual property (books, guides, resources, YouTube channel) are a few of the most lucrative ways to earn passive income in order to achieve financial freedom. But after earning more than 75k does not mean you will become any happier, have more friends, or magically turn fit and healthy. There are plenty of obese billionaires out there but overall, the more money you have, the healthier you tend to be. When I think of feeling and being healthy, it isnât about my BMI or jean size, instead, what I can do with my money to make the most out of it.
Compared to the upper class, lower to middle-income families spend the most on tobacco, alcohol, and barely anything on education, let alone prioritizing their health because buying a Peloton is obviously a luxury and organic food add up quick.
You can just go outside for free and get a free cardio boot camp instead or eat at Applebees 600 times to equate to 1 meal at Nobu. But down the road, buying cheap food and being careless with your body will hurt you more than your wallet.
The top expenses for the upper class are still the same as with any income range, but once you go down the list, they vary dramatically:
Upper-Class Top Expenses:
Shelter
Food
Utilities
Health Insurance
Health
Education
Lower to Middle-Class Expenses:
Shelter
Pensions & Social Security
Food
Utilities
Vehicle Purchases
Transportation
Health Insurance
Entertainment
Discretionary (tobacco, alcohol, parties)
Education
Being rich is obviously more expensive in regards to having to pay more taxes, need to take care of more people and manage more estates and accounts, but when it comes down to overall spending and tactics, the rich not only get away with more and spend less, they get better deals because they know more. With access to attorneys, lawyers, and assistants, that can help them save millions on everything from storing money in overseas tax havens to paying fewer taxes by charging all expenses to their businesses. Even when it comes down to necessities, the amount of consumer and income tax is only a small percentage of their overall salary compared to those who have to pay the same amount of tax but earn 1% of what they make.
Financially Fit
Especially during the pandemic, exercise became a norm that the wealthy had to adjust to in their basement gyms as they continue to keep their routines. Compared to most people in the world, this is considered a small problem that most never had to make in the first place since less than 5% of Americans participate in exercise a day. It is surprising to me that the busiest people still prioritize exercise and wake up earlier to do so. That just shows how vital it is. For the rest of the folks, when you just trying to survive now and barely make it by pre-pandemic, exercise is not on your mind and getting the most convenient and cheap food is always the first resort.
It is disappointing to hear that there is an upsurge of 40% of Americans that are using the food bank for the first time. Their financial situations could have easily been prevented if they prepared for the worst and hoped for the best. No one wants to lose their job or go into debt, but you still have to have an emergency savings account in case it happens. Thatâs why crises are always going to hurt the poor unless you take initiative during the best times to prepare for the worst. My slogan for life. At least food banks provide healthier alternatives for families in need. Iâm glad America is taking its part in these initiatives. It would be nice if the government helped out as well on stimulus for them as well so they could make ends meet.
Financially Hungry
During this pandemic, weâve definitely seen a surge in food demand and that translates to higher prices. It is strange how we are not only eating more, party due to stress and working, eating, sleeping, all things WFH from the pantry 5 feet away but also buying more as if we believe an apocalypse will wipe out all food available in the world. Donât live with a scarcity mindset, especially on Black Friday.
As weâve seen with demand for homes, that means prices surge and so do food prices. According to Super Market News, grocery prices are up 5.6% during COVID and they only seem to be going up. For the wealthy, the amount of money they spend on food relative to their income is nothing but for those who depend on food for their survival to walk and have energy not pleasure or toasting, of course, they are out of luck as well.
Not only do lower-income families not have access to healthy food with no Whole Foods insight, they also cannot afford or have access to learn about the market even though itâs all online for free, take advantage of record-low interest and mortgage rates to buy a home and or Black Friday or Cyber Monday deals designed for those who can afford to spend on things they donât need because it doesnât affect their budget.
So does that mean the wealthy are less careful about their spending?
It is certainly a toss-up because there are those who just got lucky and earned their money because they may be started their business at the right time in the right market selling masks right when COVID hit or put all their money into mutual and index funds during the housing crisis when everyone was taking it out in fear of losing it all and became millionaires abandoning the crowd.
If youâve followed either of these routes, most likely you know how money works and can manage it properly as a business owner as the CEO of your own life. But it is very tempting once you make more to spend more simply becuase you feel the pressure to ride the lifestyle inflation rollercoaster which eventually leads you to work harder and keep up with all the work youâve now waited on goods.
But to answer the question, the wealthier you are, the more you tend to take care of yourself and invest in yourself, the best asset. There is no pressure or stress to worry about where youâre sleeping tonight or where your next meal is coming from. Since that is settled and never a problem to think about, spending money on discretionary items arenât an issue, depending of course on what they are.
Just with a basic understanding of financial literacy, there is a much better chance you will get out of poverty with this knowledge and live a healthier life than without it. I cannot guarantee that you will live longer just because you are rich especially if you have been smoking cigars since you were 16 years old, but financial independence and knowledge will teach you the necessities on what is most important in life, a concept that the poor cannot wrap their head around as they are dealing with their debt, family problems, health issues and simply staying alive, basic necessities.
Fitness 101
Exercise has become a trend especially since the rise of at-home equipment and gyms popping up on every street corner in cities since the skyrocketing demand in the 2000s. Weâve learned that diet pills and extreme fasting doesnât work and our health is compromised of this simple formula: 80% diet, 20% exercise. Iâll say this over and over. You really donât need to exercise daily and cut out carbs to be in shape. And in shape I mean to be able to walk upstairs without running out of breath or feel dizzy and have an average BMI relative to your height and weight, with some abs to top it off.
Personally, as someone who has the luxury to be able to exercise every morning on my Soul Cycle at-home bike, I am appreciative in knowing that it makes my life and schedule much easier. It is something I asked for last Christmas and knew I would use it every day since. Just because someone else pays for something that is important for them, doesnât mean you need to make them feel guilty or feel the need to buy it yourself.
Exercise will always be a core part of who I am and a necessity. It makes me feel 10x better and I would rather do it than go to any party or movie night. It has been a savior in lockdown and investment as a $40 monthly subscription plus the initial $3k fee for it upfront. Iâve read hundreds of self-help guides, billionaire morning routines, and exercise South beach to Keto diet plan books and yes, theyâve inspired me but Iâve formulated it to work in my lifestyle. I enjoy waking up at 5 am because it is my own time to be alone, not because I will magically become Bill Gates from doing this religiously and one day make billions after completing my workout.
Health is personalized just like personal finance, hence the name. My best tips for staying healthy and fit throughout my life are very simple and practical.
They are real because Iâve stuck with them and easy to follow at any age.
Drink a glass of water before every meal
I guarantee you will eat half of what you ate
Eat because you are hungry not because itâs time
Yes, it isnât great to eat before bed for digestion and sleep problems, but if you are hungry then, donât force yourself to starve throughout the night causing lightheadedness and grogginess the next day.
Eat that french fry and cookie for goodness sake
Moderation is key in everything. My family from Poland always follows the Mediterranean, paleo, keto diet of eating whole foods, eliminating processed foods but that doesnât mean we didnât enjoy life or do it ever. The majority of your diet you want to be colorful and a variety and dessert can be dessert, not broccoli dipped in chocolate.
Eat and workout with others
When you eat alone, you are seduced by your phone and tend to eat more because your hunger cues never digest how much you ate. When you eat with others, you not only slow down, you enjoy the food. What is the point of rushing through a meal? That is a waste of money and energy to prepare and digest! People make you excited, motivated, and appreciative of what you are eating and while working out, pals are certainly a boost of motivation when you need it.
Get Creative
Creativity is usually sparked through boredom and most upper-class folks donâtâ get a whole lot of time for that, presuming they love their work and it takes all of the time of their schedules so they resort to buying products instead of making or creating them because theyâve used their creativity to get to the top already. But buying hand weights and making your one jungle gym on a yoga mat is a great alternative to buying a bulky expensive machine you need to pay maintenance or a subscription for to access virtual classes. Youâll feel more appreciative, worthy, excited, and proud that you created something that is making you a healthier person and promising a longer life
Being healthy is so challenging for people, especially during the holidays. As many of you probably feel the same way, I despise New Yearâs Resolutions because, for one, they are never kept, and two, just plain unrealistic. We are irrational creatures. We want things simple and quick. Shedding 20 lbs in 2 weeks is not only harmful to your body but certainly not attainable and miserable in the process. You want to live a life a fruitful life where exercise shouldnât be the main focus or else you are crawling towards adopting an eating disorder. Whether you are going out to eat or deciding on your commute, take the extra effort to put in the investment to prioritize your health becuase it is worth it down the road. Take the walk instead of car ride where you need to pay for parking and buy that organic chicken breast for a few extra dollars for dinner tonight instead of a McRib that will harm your intestines and make you pay for surgery and deal with Type 2 Diabetes when you are retired. Sure a McRib wonât kill you once in a while on a car trip, but if you want to be healthy long-term, you have to put in the effort, spend cautiously and make the mindful, wise not cheap choice.
So how can I become healthier on a budget?
Since weâve gotten exercise out of the way, letâs talk about the things we all love: Food.
The organic food debate has been spiraling on the internet for the past few years because we donât really know if organic is really worth the money.
Organic food simply means there are lower pesticides meaning there are no harmful chemicals you are ingesting. But canât that just be done by washing your food under warm water for 30 seconds? Well, chemicals arenât just on the skin of the apple or lettuce, they can get inside the meat of the food, and sometimes you can even taste the bitterness!
The Real Cost of Organic Food
The reason organic foods are more expensive is simply due to production costs. There is greater labor input required to maintain these fresh ingredients and keep them clean and ready for shipping in a shorter amount of time. There are also smaller volumes due to the price and less demand as with cheaper more bulk products as you would see in large grocery stores such as Costco. The faster something rots means it is typically healthier and organic. If it takes a month for your mozzarella or salad to go bad, that means it is preserved with harmful chemicals to keep it fresh. Reverse pyschology.
So Is Organic Worth It?
There is no doubt organic foods are less processed, have fewer additives and are chemical-free lowering your risk for certain diseases and illnesses down the road. So the short answer is yes and for your wallet too. Sure, lots of chips and candy are deemed organic as well, but that will not help you become a cleaner more fit person. Staying whole, reducing the amount of sugar, alcohol and processed foods will put you on the right track for feeling better, stronger, mentally, and physically becuase you will have to pay a price later for those if you donât maintain them. Your body is a machine. You have to feed it the proper fuel or it will die and need repair, just like a car. If you donâtâ buy car, home, or life insurance, it is not unexpected that you will have to pay out-of-pocket costs for accidents or emergencies that are double the price if you donât have insurance to cover it at all.
But to save the wallet and sanity, here are some foods that donât need to be organic due to their thick skin or overall food group:
-Avocados
-Bananas
-Pineapples
-Asparagus
-Broccoli
-Onions
-Kiwi
-Cabbage
To be healthy is a choice and although there are fat, McDonald loving billionaires, cough cough our president out there, the choice to be healthier when you are more wealthier, is a practical choice and taken more seriously. Burnout, fatigue, exhaustion, headaches and your risk from having a stroke or going into cardiac arrest skyrocket the harder you work and the wealthy are the subsets of people whoâve witnessed it the most.
Is it worth it to go through all of that suffering just to earn that amount of money? Certainly not unless you love your job and it doesnât feel like pain, although there is no guarantee everything will be sunshine and rainbows all the time. No pain no gain right? As weâve learned earlier, after earning 75k or so per year, sure you can get happier at times from buying a Lambo and new yacht here and there, but after that, if your health is in decline, nothing will be fulfilling or worth enjoying.
I urge you to prioritize your mental and physical health this holiday season, for 2021 and beyond. Past January 3rd. Donât start on January 1st becuase you know it wonât last. Get that 15 mins of Vitamin D and C outside daily, get at least 7â9 hours of sleep per night, get your heart rate up for at least 20 mins per day (no FitBit or fancy Apple Watch necessary, just hold your hand on your heart or pulse on your neck), and save yourself money down the road by spending those extra few dollars on organic, whole indigents that will make your life easier and hopefully taster for years to come. Life isnât a race.