1 small steps to health and wealth barbara o’neill, ph.d., cfp barbara o’neill, ph.d., cfp karen...

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Small Steps to Health and Wealth

Barbara O’Neill, Ph.D., CFPBarbara O’Neill, Ph.D., CFP

Karen Ensle, Ed.D., RD, FADAKaren Ensle, Ed.D., RD, FADA

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How is How is Your Your

Wellness Wellness & Quality & Quality of Life?of Life?

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Class ContentClass Content

1.1. Discuss relationships between health & wealthDiscuss relationships between health & wealth

2.2. Discuss common behavior change strategies Discuss common behavior change strategies

3.3. Encourage participants to: Encourage participants to:

Set health and finance goals Set health and finance goals

Identify small steps to reach goalsIdentify small steps to reach goals

Periodically monitor progressPeriodically monitor progress

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Overall Class Goal: Overall Class Goal: EmpowermentEmpowerment

• Set realistic goals

• Identify small, do-able “action steps”

• Identify obstacles and overcome them

• “Put your mind to it” and take action

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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

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“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.”

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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

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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

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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

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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

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……And More And More SimilaritiesSimilarities

17. Many available resources17. Many available resources

18. Poor risk perception18. Poor risk perception

19. Personal Traits = Success19. Personal Traits = Success

20. Government and employer intervention20. Government and employer intervention

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OvereatingOvereating: An “Issue” for Many: An “Issue” for Many

1.1. Many Americans overeat for their activity levelMany Americans overeat for their activity level

2.2. 3,500 calories = 1 pound3,500 calories = 1 pound

3.3. 100 extra calories a day = about 10 pounds per year100 extra calories a day = about 10 pounds per year

4.4. Walking a mile burns about 100 caloriesWalking a mile burns about 100 calories

Can lose about 10 pounds per year ORCan lose about 10 pounds per year OR

Eat 100 cals/day more without weight gainEat 100 cals/day more without weight gain

5.5. 10,000 steps/day (about 5 miles) recommended10,000 steps/day (about 5 miles) recommended

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Overspending:Overspending: Another Common “Issue”Another Common “Issue”

• Increasing household debt balancesIncreasing household debt balances

• ““Perma-debt”Perma-debt”

• The minimum payment trapThe minimum payment trap

• Punitive credit card feesPunitive credit card fees

• > 1 million bankruptcies filed annually> 1 million bankruptcies filed annually

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Save the Money Spent on Save the Money Spent on Unhealthy BehaviorsUnhealthy Behaviors

• Fewer alcoholic beveragesFewer alcoholic beverages

• Fewer “empty calorie” foodsFewer “empty calorie” foods

• Smaller portion sizes; more leftoversSmaller portion sizes; more leftovers

• Give up smokingGive up smoking

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Just Just One One ExampleExample

• $1.50 a day (junk food) saved from $1.50 a day (junk food) saved from

age 18 to 67 = $290,363age 18 to 67 = $290,363

• $5.00 a day saved for 49 years = $ 1 million +$5.00 a day saved for 49 years = $ 1 million +

Source: Getting Rich in America: 8 Simple Rules

Assumes an 8% average annual return

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Ten Small Steps to Health & WealthTen Small Steps to Health & Wealth

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1. Convert Calories & Spending 1. Convert Calories & Spending Into LaborInto 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?

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Case Example: French FriesCase Example: French Fries

20 Years Ago20 Years Ago TodayToday

2.4 ounces 210 calories

??? Calories

590? 610? 650?

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Today's 6.9-Ounce Portion of French Today's 6.9-Ounce Portion of French Fries Has 610 CaloriesFries Has 610 Calories

• This is This is 400400 more calories than a 2.4 oz portion more calories than a 2.4 oz portion 20 years ago.20 years ago.

• Now guess how long you will have to walk Now guess how long you will have to walk leisurely in order to burn those extra calories?*leisurely in order to burn those extra calories?*

• 1 hour 10 minutes1 hour 10 minutes2 hours 20 minutes 2 hours 20 minutes 3 hours 3 hours

*Based on a 160-pound person

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To Burn the French Fries, To Burn the French Fries, Walk 1 Hour & 10 MinutesWalk 1 Hour & 10 Minutes

• If you walk leisurely for If you walk leisurely for 1 hour and 10 minutes1 hour and 10 minutes you you will burn approximately will burn approximately 400 calories.*400 calories.*

*Based on a 160-pound person.

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2. Meet Yourself Halfway…2. 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

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““The Latte Factor” (David Bach)The Latte Factor” (David Bach)

• It’s not just about giving up pricey coffeeIt’s not just about giving up pricey coffee• It’s about “finding” money to save by reducing It’s about “finding” money to save by reducing

everyday expenseseveryday expenses• What are your “lattes”?What are your “lattes”?

____________________________________________________________

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3. Downsize and Substitute3. Downsize and Substitute

• Health:Health: “Just eat less” (than you do now) “Just eat less” (than you do now) Buy less foodBuy less food Eating out? Try lunch portions and appetizers Eating out? Try lunch portions and appetizers Buy low-calorie versions of foodsBuy low-calorie versions of foods Control your condimentsControl your condiments

• Finances:Finances: “Just spend less” (than you do now) “Just spend less” (than you do now) Buy fewer itemsBuy fewer items Track spending to understand habitsTrack spending to understand habits Shop smart to buy things for lessShop smart to buy things for less Buy lower-cost brands Buy lower-cost brands

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4. Just Say 4. Just Say “No” “No” to Super-Sizingto Super-Sizing

• Health:Health: Steer clear of “meal deals” in Steer clear of “meal deals” in restaurants and order smaller portionsrestaurants and order smaller portions People often eat all the food they are givenPeople often eat all the food they are given

• Finances:Finances: Avoid “buy three and save” offers Avoid “buy three and save” offers when you only need one itemwhen you only need one item Scrutinize offers to trade-up to a costlier Scrutinize offers to trade-up to a costlier

item (bait and switch?) or buy more itemsitem (bait and switch?) or buy more items

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Is Bigger Better?Is Bigger Better?

• 1957: 1 oz. fast food burger 210 1957: 1 oz. fast food burger 210 caloriescalories

• 2002: 6 oz fast food burger at 618 2002: 6 oz fast food burger at 618 caloriescalories

Source: U.S News & World Report, August 19, 2002, Vol.133, No. 7.

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Change in Soft Drink ConsumptionChange in Soft Drink Consumption

• In 1994 a 6.5 oz Coca Cola was In 1994 a 6.5 oz Coca Cola was 79 calories 79 calories

• In 2002 a 20 oz. Coca Cola isIn 2002 a 20 oz. Coca Cola is

250 calories250 calories

Source: U.S News & World Report, August 19, 2002, Vol.133, No. 7.

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5. Track Your Current Habits5. Track Your Current Habits (Exercise, Eating, & Spending)(Exercise, Eating, & Spending)

• Use a pedometer:Use a pedometer: To determine current number of steps- then build up graduallyTo determine current number of steps- then build up gradually

““Use your feet more and you can eat more”Use your feet more and you can eat more”

• Track foods eaten & calories consumed:Track foods eaten & calories consumed: Use a “Calorie Counter” book for unlabeled foodsUse a “Calorie Counter” book for unlabeled foods

• Track monthly income, expenses, & cash flowTrack monthly income, expenses, & cash flow Is spending or eating related to emotions?

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6. Compare Yourself With Experts’ 6. Compare Yourself With Experts’ RecommendationsRecommendations

• 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

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What is BMI? (Body Mass Index )What is BMI? (Body Mass Index )

A formula based on height & weight used to determine A formula based on height & weight used to determine a healthy person’s body fata healthy person’s body fat

A simple index to determine whether a person is at risk A simple index to determine whether a person is at risk for weight-related diseasesfor weight-related diseases

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7. Learn the Standards For Health and 7. Learn the Standards For Health and Financial AdviceFinancial Advice

• Health:Health: Compare portion sizes to objectsCompare portion sizes to objects 3 oz of meat or fish = size of deck of cards3 oz of meat or fish = size of deck of cards 1 cup of rice or pasta = size of a tennis ball 1 cup of rice or pasta = size of a tennis ball Weekly fitness guidelines: Weekly fitness guidelines:

30 minutes of daily exercise for adults; 30 minutes of daily exercise for adults; 60 minutes daily for youth60 minutes daily for youth

• Finances:Finances: Follow guidelines for saving Follow guidelines for saving Emergency fund of 3 to 6 months expensesEmergency fund of 3 to 6 months expenses Retirement income of at least 70% to 80% of pre-Retirement income of at least 70% to 80% of pre-

retirement amountretirement amount

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8. Put Good Habits On “Automatic Pilot”8. Put Good Habits On “Automatic Pilot”

• Health:Health: Routine health screenings, nutritional Routine health screenings, nutritional shakes and “points” programs for weight loss, short shakes and “points” programs for weight loss, short programmed workouts (e.g., Curves)programmed workouts (e.g., Curves)

• Finances:Finances: Dollar-cost averaging investment deposits, employer retirement savings plan, Save More Tomorrow concept, direct deposit

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9. Control Intake and Outgo9. Control Intake and Outgo

• Health:Health: “Budget” your daily calories “Budget” your daily calories Reduce the amount of food consumedReduce the amount of food consumed Increase exercise to burn off more caloriesIncrease exercise to burn off more calories Do bothDo both

• Finances:Finances: Develop a written spending plan Develop a written spending plan Reduce household expensesReduce household expenses Increase income or benefits in lieu of incomeIncrease income or benefits in lieu of income Do bothDo both

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10. Small Remedies Make a Difference10. Small Remedies Make a Difference

• Many people believe they must make major Many people believe they must make major lifestyle changes to be healthy and wealthylifestyle changes to be healthy and wealthy

• ““Gloom and doom” messages don’t workGloom and doom” messages don’t work

• Start small with a specific goal in mindStart small with a specific goal in mind

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Examples of Small RemediesExamples of Small Remedies

• Health:Health: Use less butter or Use less butter or

salad dressing, salad dressing,

drink less soda, drink less soda,

cut portion sizes, cut portion sizes,

share an entrée, share an entrée,

get two meals from get two meals from one, one,

make time to exercisemake time to exercise

Track Your Progress: Success = MotivationTrack Your Progress: Success = Motivation

Finances:Finances:• Save $1/day + pocket change, Save $1/day + pocket change, • Add $1/day to the minimum Add $1/day to the minimum payment due on a credit card, payment due on a credit card, • Save an extra 1% of pay in a 401(k) Save an extra 1% of pay in a 401(k)

plan, plan, • Buy an EE bond monthly for $25Buy an EE bond monthly for $25

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Make Progress EverydayMake Progress Everyday

AnyAny small step to improve your small step to improve your health or increase your wealth is health or increase your wealth is better than doing nothing!better than doing nothing!

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Key Health and Wealth FactorsKey Health and Wealth Factors

• AttitudeAttitude• AutomationAutomation• Awareness/knowledgeAwareness/knowledge• ControlControl• EnvironmentEnvironment• GoalsGoals• TimeTime

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Comments? Questions? Comments? Questions?

Experiences?Experiences?

Be healthy, Be healthy, wealthy, and wealthy, and happy…alwayshappy…always..

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For More InformationFor More Information

• www.smallstep.gov

• www.YourDiseaseRisk.Harvard.edu

• www.Medlineplus.gov

• www.eatright.org

• www.healthypeople.gov

• www.rce.rutgers.edu/money2000• www.investing.rutgers.edu• www.nefe.org/latesavers/

index.html• www.asec.org• www.pueblo.gsa.gov