Exercise NZ media release: 11th September 2024

The benefits of regular physical exercise are well-documented, from enhancing physical health to boosting mental well-being. However, recent research highlights an additional, lesser-known benefit: exercise can also play a pivotal role in financial success. It's clear that exercise isn’t just about fitness - it’s about maximising brain power and, consequently your earning potential.

Research published in Comprehensive Physiology and the Proceedings of the National Academy of Sciences reveals that individuals who maintain a consistent exercise routine experience significant cognitive improvements, including better memory, faster information processing, and sharper decision-making. Exercise has also been linked to improved focus, productivity, financial planning, and stress reduction. These cognitive advantages are critical in today’s fast-paced, information-driven economy, where sharp mental acuity can be pivotal to professional and financial success.

A recent meta-analysis in the Journal of Economic Psychology confirmed the relationship between cognitive function and economic circumstances - further supporting this connection. The study found that financial hardship negatively impacts cognitive performance, particularly in decision-making and planning - areas heavily influenced by stress. However, regular physical activity can counteract these effects by enhancing cognitive function through stress reduction and improved mental clarity. Moreover, the discipline required to maintain an exercise routine often carries over into other areas of life, including financial management. One investment analysis has gone so far as to show that companies with CEOs who lift weights outperform the S&P500 by 140% (or 2.4x) in the last four years.

Just as exercise requires setting goals, staying focused, and following through, so does building wealth. Those who exercise regularly tend to develop stronger self-discipline and better time management, contributing to increased productivity and improved financial decisions. Exercise also helps to reduce stress and prevent burnout, allowing individuals to sustain peak performance in their careers for longer periods. While correlation doesn’t always imply causation, exercise’s cognitive and physical benefits can significantly impact professional performance and wealth-building potential. Prioritising your health by staying active creates a ripple effect that improves not only your physical fitness but also your financial well-being. Investing time in exercise isn’t just about achieving a healthier body - it’s about unlocking the potential for a healthier bank balance.