Small Steps to Health and Wealth™

Barbara O’Neill, Ph.D., CFP®

2

Health & Human Services (HHS) Health & Human Services (HHS) Press Release, March 2004Press Release, March 2004

“Consumers don’t need to go to extremes-- such as joining a gym or taking part in the latest diet plan-- to make improvements in their health. But they do need to get active and eat healthier.”

“America needs to get healthier one small step at a time. Each small step does make a difference, whether it’s taking the stairs instead of an elevator or snacking on fruits and vegetables. The more small steps we can take, the further down the road we will be toward better health for ourselves and our families.”

Tommy G. Thompson, HHS Department Secretary

3

“Save For Your Future” NationalNational Campaign Booklet, May 2003Campaign Booklet, May 2003

“You may not need a lot of money to accumulate meaningful savings. Thanks to compound interest, small regular savings can add up over time. Because, with compound interest, it’s not just your money that earns interest-- your interest earns interest as well-- creating a snowball effect. The longer you save, the more compound interest works for you.”

4

Health and Finance “Issues” Health and Finance “Issues” SimilaritiesSimilarities

1. Problems develop gradually

2. Less stigma due to increasing frequency

3. Impacts job productivity, discrimination

4. Lots of technical jargon

• Medical terms and directions

• Financial terms and acronyms

5

More More SimilaritiesSimilarities Health and Finance “Issues”Health and Finance “Issues”

5.5. Need for programs in schools & at work sitesNeed for programs in schools & at work sites

6. People fear drastic changes & large numbers6. People fear drastic changes & large numbers

7. Need for more “point of purchase” info7. Need for more “point of purchase” info

8. Advice needs to be realistic8. Advice needs to be realistic

6

Still More Still More SimilaritiesSimilarities Health and Finance “Issues”Health and Finance “Issues”

9. Lack of limits causes problems9. Lack of limits causes problems

10. Restrictions help avoid problems10. Restrictions help avoid problems

11. Drastic solutions have major drawbacks11. Drastic solutions have major drawbacks

12. 12. Good health and wealth are related toGood health and wealth are related to::

• Higher productivity, fewer work absencesHigher productivity, fewer work absences

• Lower medical expenses to erode wealthLower medical expenses to erode wealth

• Live long enough to collect Social Security benefitLive long enough to collect Social Security benefit

7

Still More Still More Similarities...Similarities...

13. Longevity concerns: healthy people 13. Longevity concerns: healthy people need more moneyneed more money

14. People want quick fixes; targets for fraud14. People want quick fixes; targets for fraud

15. Denial and disconnects15. Denial and disconnects

16. Need for routine check-ups16. Need for routine check-ups

8

SSHW Framework: 25 Health & Wealth SSHW Framework: 25 Health & Wealth Behavior Change StrategiesBehavior Change Strategies

9

Meet Yourself Halfway…Meet Yourself Halfway…Or You Will Feel DeprivedOr You Will Feel Deprived

• Health:Health: Decrease portion sizes of favorite foods by Decrease portion sizes of favorite foods by 1/3 to 1/2 and/or increase exercise1/3 to 1/2 and/or increase exercise

• Eat half as much as you do now…graduallyEat half as much as you do now…gradually

• Take leftovers from restaurant meals homeTake leftovers from restaurant meals home

• Finances:Finances: Reduce discretionary spending by 1/3 to Reduce discretionary spending by 1/3 to 1/2 and/or increase income1/2 and/or increase income

• Spend less than you do nowSpend less than you do now

• Look for less expensive optionsLook for less expensive options

10

Convert Consumption (Calories Convert Consumption (Calories & Spending) Into Labor& Spending) Into Labor

• Health:Health: How many hours of exercise are needed How many hours of exercise are needed to burn off extra food?to burn off extra food?

• Is eating a certain food “worth the calories?”Is eating a certain food “worth the calories?”

• Finances:Finances: How many hours of work are needed How many hours of work are needed in order to buy something (use after-tax dollars)?in order to buy something (use after-tax dollars)?

• Is buying something worth the time worked?Is buying something worth the time worked?

11

Compare Yourself With Compare Yourself With BenchmarksBenchmarks

• Health: Health:

• Body Mass Index (BMI)Body Mass Index (BMI)

• ““Five a day” (fruits and vegetables)Five a day” (fruits and vegetables)

• Total cholesterol < 200 mg/dlTotal cholesterol < 200 mg/dl• Finances:Finances:

• Consumer debt-to-income ratio < 20%Consumer debt-to-income ratio < 20%

• Age x gross income divided by 10 (Stanley & Danko net Age x gross income divided by 10 (Stanley & Danko net worth formula in worth formula in The Millionaire Next DoorThe Millionaire Next Door))

• Suggested asset allocations by ageSuggested asset allocations by age

12

Defy Someone or Defy The Odds

• Make a bet and win it

• Prove someone wrong

• Stop being a statistic!

13

Step Down to Change

• Don’t cut out something completely

• Find a better alternative

14

Kick It Up a Notch!

• Ramp up physical activity

• Work up to 10,000 steps

• Increase fruits & vegetables in diet

• Do more of anything positive!

• Transfer credit card balances to lower rate

• Automatically increase savings at regular intervals

• Add 1/12 of mortgage payment (P & I) monthly

• Do more of anything positive!