Dr Oz: What Can You Really Afford?
Dr. Oz says the more you worry about money the more you put your health at risk. Regardless of how little or how much money you have, the stress is all the same, so on today’s show he is offering solutions to take control of your financial health once and for all! Have you ever heard of Money Anxiety Disorder?
Dr Oz: M.A.D. – Money Anxiety Disorder
Lynette Khalfani-Cox, The Money Coach, explained that M.A.D. (Money Anxiety Disorder) is caused by stress related to financial issues. Lynette says there are three types of money anxieties and she outlined each one for Dr. Oz.
- Type 1: The person who is always saying they do not have enough money for everyday expenses.
- Type 2: This is a person who is constantly worried about their finances in the future, like retirement and college tuition for their kids.
- Type 3: This is someone who always seems to be baffled about money because they do not understand finances and are often confused by them.
Dr. Oz talked to three women in his audience, each who fell into one of the money anxiety categories. While they all have different worries about their finances, Dr. Oz says the stress is still the same and can lead to big health problems in the future.
Dr Oz: How To Create A Family Budget
Lynette Khalfani-Cox says there are three steps to keep you financially healthy and she shared each of them with Dr. Oz. She explained the average American family takes home around $45,000 annually after taxes, or around $3,750 per month. Those numbers are what she and Dr. Oz used as a guideline as they went through the following steps.
Step 1: Identify key categories and itemize everything
- Housing – 33% of income (around $1,200 per month)
- Debt – 15% of income every month should be allocated to your debt payments, or around $575.
- Savings – 10% of income should go into savings every month, which equates to $375.
- Food – 8% of monthly budget should be devoted to food, but Dr. Oz added he does not mind if you spend more because in the long run it will keep you healthy, especially if you choose the right foods.
- Everything else – 33% of your budget should be allowed for things like subscriptions, memberships and utility bills.
The most important thing, according to Lynette, is to be honest with yourself about what you are truly spending your money on every month. The best way to accomplish this is by writing everything down on a piece of paper. She explained some of the most commonly missed expenses are things like children’s gifts, cell phones, entertainment and school supplies if you have kids.
Dr Oz: Financial Stress Causes Health Problems
Dr. Oz says he understands what a huge step it is to sit down and write down everything you spend money on, even comparing it to the stress a woman feels when she has to step on the scale at the doctor’s office. He added, though, that once you take this one big step and get honest about your finances you can then focus on getting healthy, both financially and physically.