Iffy Strategy

Over a long holiday weekend, I read a Chicago Tribune article on “financial triage” – the need to prioritize your personal finances pronto in the wake of a job loss in the current economic climate. Since job loss affects the income side, the gist of the article was to address the spending side, and one of the first tips was to act quickly and decisively. An example here, along with eliminating a Netflix-type of DVD subscription, was to eliminate the health club membership.

I understand that the message here is to cut deep in times of personal financial crisis, and I also understand that the health club reference was only an example. Nonetheless, I take issue with it. Of all the things that a person or family could and should cut in those instances, a health club membership is not one of them. Sure, if someone has a membership that is rarely or never used, then nix it because it’s serving no purpose other than to drain the bank account. However, if a person is actually using it then I’m going to take a “wild” guess based on research and years of experience that there are physical and mental benefits being gained. In that situation, cutting a health club membership just makes the situation worse, because it cuts off an outlet for stress, as well as opportunities for maintaining self-esteem in a very difficult time. Not only that, but given that many self-branding gurus talk about one’s appearance (physical and clothing) and demeanor as a product package, similar to an actual product or service package, the last thing a person would want to do in a competitive employment environment such as a recession is to let their brand slip a bit in comparison to their competition. Cutting out a club membership, assuming that’s the primary place a person gets their regular exercise, does exactly all of those negative things.

Just as personal finance experts distinguish between good debt (house, education, etc.) and bad debt (credit cards), I’d make a distinction between good or necessary expenses (house, groceries, health club, etc.) and bad or unnecessary expenses (dinners out, cable TV, books/music, etc.). I recognize that what’s necessary and unnecessary varies by individual, but I argue that one’s health and overall well-being is a non-negotiable – even in times like these.