Why Healthy Habits Lead to Better Savings: The Link Between Diet, Lifestyle, and Financial Security

In today’s fast-paced world, two areas dominate the concerns of young professionals: staying healthy and becoming financially secure. While these may seem like separate goals, new studies reveal a strong connection between the two. People who commit to healthy eating and exercise are not just investing in their physical well-being; they are also building habits that make them better savers and planners for the future.

This is especially relevant in Singapore, where younger adults (ages 25–34) are increasingly conscious about both their physical health and financial independence. With rising healthcare costs, limited employer insurance coverage, and caregiving responsibilities threatening retirement savings, cultivating good health is becoming closely linked to cultivating good wealth.

The Health–Wealth Connection

Research consistently highlights the deep link between health and financial well-being. A study by Columbia University Medical Center (2024) showed that people under financial stress often report poorer health outcomes, while those who maintain stability are more likely to make healthier lifestyle choices. Conversely, those who lead healthy lives often enjoy lower stress, stronger productivity, and better long-term wealth prospects (Columbia University, 2024).

Healthy eating and exercise help prevent costly chronic diseases like diabetes, hypertension, and cardiovascular issues, which not only impact quality of life but also drain savings. By avoiding these, health-conscious individuals protect their future wealth and reduce the likelihood of financial crises caused by medical bills.

How Healthy Habits Encourage Better Saving

Lower Healthcare Costs
Eating nutritious food and exercising regularly help reduce the risk of lifestyle-related illnesses. This translates into fewer doctor visits, lower prescription drug costs, and less time spent managing chronic conditions. Over time, these savings add up, creating more room for retirement and investment contributions.

Insurance Benefits
Healthier people are more insurable. They often enjoy lower life and critical illness premiums compared to those with higher risk profiles. This makes insurance more affordable and effective, strengthening overall financial protection.

Discipline and Self-Control
Following a healthy lifestyle requires resisting short-term gratification (like junk food) for long-term rewards (good health). This same discipline applies to money management — resisting impulse purchases and sticking to savings plans.

Productivity and Career Growth
Health-conscious individuals often have more energy, fewer sick days, and better mental clarity, which helps them excel at work. Higher productivity can translate into career growth, promotions, and income stability, all of which support stronger savings.

Mindful Consumption
Healthy eaters plan their meals and avoid wasteful spending on fast food or processed snacks. These mindful consumption patterns mirror financially savvy behaviours, such as budgeting, avoiding waste, and investing wisely.

Younger Singaporeans: Health-Conscious and Future-Focused

For younger Singaporeans, the connection between health and financial security is particularly strong.

A 2025 Manulife Asia Care Survey found that Singaporeans now prioritise quality over quantity of life when thinking about retirement. Many expressed the desire to live independently and illness-free, without becoming a financial burden on their families (Manulife, 2025).

At the same time, surveys show that Singapore’s younger adults are highly cautious savers. Many prefer safe bank accounts with bonus interest rather than riskier investments, reflecting their desire for stability and security (The Straits Times, 2025). This mindset parallels their health behaviours — cautious, preventive, and focused on long-term well-being.

Social media has amplified this trend, with younger Singaporeans exposed daily to discussions about financial freedom, wellness, and preventive healthcare. Online communities often tie together concepts of health optimisation, disciplined living, and wealth-building, reinforcing the idea that health and money go hand in hand.

The Insurance Gap: A Hidden Weakness

Despite their focus on healthy living and saving, many young professionals in Singapore remain underinsured.

• Overreliance on Employer Coverage: Many assume that company-provided insurance is sufficient, but such coverage often has limits and may not extend to critical illness or long-term care.

• Optimism Bias: Healthy individuals may underestimate their risk of illness or accidents, which delays the purchase of adequate personal insurance.

• Caregiving Burdens: In Singapore’s aging society, many will face the responsibility of caring for elderly parents, which can erode personal savings even if they remain healthy themselves.

This underinsurance can undermine otherwise prudent financial planning. Even those who live healthily should protect against unexpected shocks by investing in life and critical illness coverage early.

Why Discipline in Health Builds Financial Resilience

The psychological parallels between health management and financial management are striking:

• Delayed Gratification: Choosing salad over fast food mirrors saving money instead of splurging on luxury goods.

• Tracking and Goal Setting: Health-conscious individuals often track calories, weight, or exercise. This habit transfers easily to tracking expenses, savings targets, and investments.

• Consistency: Daily choices like drinking water or exercising build long-term results. Similarly, saving a fixed amount each month builds wealth over decades.

• Preventive Mindset: Just as preventive care avoids illness, financial planning avoids crises. Both require thinking ahead and acting early.

Challenges and Considerations

While the health–wealth connection is strong, some challenges remain:

1. Healthy Food Costs: Nutritious diets can be more expensive upfront, making them less accessible to lower-income groups.

2. Correlation vs. Causation: The same personal traits — discipline, education, or higher income — may drive both healthy eating and saving.

3. Unpredictable Health Shocks: Even the healthiest individuals may face sudden illness or accidents, highlighting the need for comprehensive planning.

4. Lifestyle Inflation: As incomes rise, some people spend more on premium foods or luxury wellness experiences, reducing their savings rate.

These caveats highlight the importance of balance: staying health-conscious, but not assuming health guarantees financial security without proper planning.

Practical Steps for Young Adults

1. Automate Your Finances: Just like setting a gym schedule, automate monthly transfers to savings and investments.

2. Buy Insurance Early: Secure critical illness and life coverage while premiums are lower.

3. Link Health to Wealth Goals: Treat every workout and healthy meal as part of your financial plan, reducing future medical costs.

4. Plan for Caregiving: Build a buffer fund for future caregiving responsibilities, which may affect your ability to save later.

5. Avoid Lifestyle Inflation: As income grows, allocate a portion of the increase to savings before upgrading your lifestyle.