Did you know your wealth directly affects your health?

I know we tend to focus on wealth inequality because it is the most quantifiable but we overlook it’s relationship with our health.

For example, there is a positive correlation between health and wealth.

This can be seen across various indicators of wealth. Homeowners are more likely to be considered in excellent health when compared to renters. Renters were likely to be considered in poor health when compared to homeowners.

Clearly, the simple fact of owning a home does not make you healthier.

In recent years, as incomes have stagnated and the costs of living has gotten higher—especially in housing—homeownership has been limited to either those with intergenerational health or families with high incomes.

Therefore, homeownership as an indicator of inequality is higher than ever.

Correlation is not causality. So, what is causing negative health outcomes among the economically vulnerable?

The answer is STRESS

Yes, stress.

OKAY. It’s a bit more complicated than that but stress can be defined as the tension on our mental health that is the result of demanding circumstances.

And one finding by the Observatoire québécois des inégalités found that 16% of renters consider themselves in a precarious state of mental health. This is more than DOUBLE the percentage of homeowners (7.5%).

If wealth accumulation is one indicator of mental and physical health, then indebtedness is its opposite indicator.

And this is because indebtedness is often the result of job loss, disability and other interruptions to income. 😱

Sounds hopeless?

Well, here a number of things you can do to reduce stress...

1️⃣ Build an emergency fund: Having 3-to-5 months of expenses set aside in case of a disability or job loss can be life-saving.

But, first...

2️⃣ Pay off consumer debt ASAP: High-interest debt can quickly erode the benefits of an emergency fund. So, pay it down, THEN build your emergency fund.

3️⃣ Make sure you are sufficiently insured. Typically, employees have employer-sponsored disability insurance but these can be altered by the employer, often as a cost-cutting measure. Be sure to understand your benefits package. Or, you can top-up your insurance through an individual policy.