Does Engaging In Regular Exercise Make Financial Sense?

Does Engaging In Regular Exercise Make Financial Sense?

I think almost everyone knows that there is a connection between exercise and personal health. I also think many are aware that exercise can provide additional benefits such as improved mood and higher energy levels. Would you be surprised to also know that engaging in regular exercise has also been proven to result in higher income? I know when I first heard this I was a little surprised and I also had my doubts as to whether this could be proven. I decided to do some additional research, and in fact it does appear that engaging in regular exercise results in higher income.

There are multiple academic studies that have been performed in regard to exercise and income, and one that I found particularly insightful was, “The Effect of Exercise on Earnings: Evidence from the NLSY,” by Vasilios D Kosteas (published by Springer Science+Business Media, LLC). I am going to focus on the takeaways from this research, and not overwhelm you with the statistical modeling that was done (but if you are into this type of stuff you can find this paper online with a simple google search).

How much more do people that regularly exercise make? This was the first question that I had when I heard that individuals who participate in regular exercise (exercise 3 times or more per week) earn more than people that do not regularly exercise. The answer is, “estimates show that frequent exercise is associated with a nearly 7% increase in wages for men and an even larger increase for women.” Let me put that in a different perspective for you. Let’s assume you work 245 days a year after subtracting out weekends and holidays. The extra 7% in pay would be the equivalent of getting paid for an extra 17 days (or more than 3 full work weeks).

The author concludes that, “exercise can lead to higher wages by raising a worker’s productivity. Regular physical activity has been linked to improved mental function, psychological wellbeing and energy levels, all of which can result in increased productivity and translate into higher earnings.” The key takeaway is that when we exercise regularly (3 times per week or more) we tend to be more productive. The increased productivity eventually results in higher income. If the health benefits from exercise were not enough to get you back into a regular exercise routine maybe learning that you could likely start making a higher income will give you the extra boost you need.

Your friend,

Sheridan
Dollar Workout Club

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