Extending my Time Horizon

I have been on my new work out regimen for about 3.5 months.  In this time I have increased my sustained energy (cardio) output by 40%, and can now bench press more than my own weight.  With a mix of strength and interval training I have begun morphing my body and my metabolism from a out-of-shape to somewhat in shape.  I expect to continue making continuing gains for about 2-3 months, at which point I expect my fitness to begin slowly plateauing.

Frankly, I hope to continue exercising — in one form or another — for the rest of my life.  According to my research, the level of exercise I am performing can, in the mean, extend my lifetime by about 3 years.  This, of course, means my financial planning needs to be adjusted accordingly.

Mostly these minor adjustment mean a slight increase in savings and a small increase in risk-asset allocation.

There is seldom a benefit without a cost.  My share of the cost for the family gym membership is about $60/month. I have also paid a short-term $1100 for 21 weeks of one-hour, one-on-one personal training.  After the initial period, I plan on going to a once-per-month personal training program.  This works out to about $1400 per year for the gym membership and monthly personal training.

However the benefits of physical fitness, both personal and financial are tremendous.  The most striking example is type 2 diabetes, which a largely preventable and potentially devastating disease affection millions of Americans.  According to this website, type 2 diabetes affects over 25% of people 65 years old and older.  Preventing this one disease alone, in my opinion, is worth the financial and time costs of maintaining and improving physical fitness.

Improved fitness helps prevent other diseases such as stroke and heart attacks.  Whereas fitness (and proper diet) are virtually guaranteed to prevent type 2 diabetes, improved physical fitness reduces the odds of, say, the devastating affects of stroke. But just like reducing the risk of a financial loss is valuable, so is reducing the risk of various diseases.

The Purpose of Investing

The purpose of individual investing boils down to two important objectives: 1) Being more confident in your financial future, 2) Attaining a bright financial future.  In terms of well-being the first objective makes one feel more secure and happier today, while the second causes one to be more secure and hopefully happier in the future.

In essence the purpose of investing derives from the goals of security, freedom, and happiness.  It is these goals that have got me hooked on “exercise religion”.  In the case of financial matters, I continue to save today, for a brighter tomorrow.  As regards fitness, I am similarly making investments of time and money to bolster my future health.

What I’m saying is that exercise is a form of savings — saving future cost of medical expenses, missed work, and unhappiness.  I’ve put a lot of work into building my financial future, and I will do what I have to live to see it.