It seems that people who are healthy are more likely to have higher incomes and better job prospects, according to a report.
The AMP.NATSEM report “Healthy, Wealthy and Wise?” found people who were unhealthy earned less than half of the average income of healthy people. The unhealthy also had poor participation in the workforce, with one in every two unhealthy working-age people not working, compared to one in five working-aged people who had good health. So, it definitely shows that being healthy will increase your overall lifestyle.

Surprisingly, unhealthy workers were more likely to be in casual work rather than full-time positions, meaning most lost access to the sick pay benefits that full-time workers had. These are also the people who would probably need it most aswell.

The average income of healthy people rose from $41,000 in 2001/02 to $54,000 in 2006/07 while those with “persistent poor health” found their incomes fell from $24,000 to $22,000 in the same period.

Investing time and effort in good health is worth the effort in terms of having a job and a good income. Staying fit and healthy generally requires strong discipline in terms of eating habits and exercise. Also applying that same discipline to money management will provide financial benefits down the track. It’s a ‘lifestyle’ decision.

Contrast to our physical health, being a ‘Fat’ nation, the report found Australians were in good financial shape, experiencing the fourth highest level of quality of life in the world, but many were unprepared for life-changing circumstances such as unexpected illness or injury.

Could you afford to pay the rent, a mortgage, personal loans, food bills or school fees with weeks or months without an income, or even with a reduced income if you couldn’t work? Many people would not.

A report by Dunn & Bradstreet found four out of 10 Australians, could only last for up to one month if they lost their job. This is concerning, considering that only 1 in 5 Australians have some form of income protection insurance in place to combat this. Premiums are affordable & tax deductible, so it’s not a large committment to protect yourself from the unknown.

A fact is that 1 in 3 people will have 3 months off in their working life. Would you be able to survive?

Some simple steps to safeguarding yourself if you got into this situation are:

*GETTING rid of debts in the right order, such as non-deductable debts and high interest bearing debts such as credit cards;

* MAKING sure all insurances, including income protection, were adequate and up-to-date; and

* NOT spending more than you earn.

For more information and quotes on Income Protection insurance, visit www.protectmywealth.com.au

PD