Exercise and Financial Wellbeing: The Surprising Link in 2025

Australians have long known that exercise is key to a healthy body and mind. But in 2025, there’s growing evidence that keeping fit can also give your finances a serious leg-up. With cost-of-living pressures on the rise and health-related expenses soaring, integrating regular exercise into your routine could be one of the most cost-effective investments you make—both for your wellbeing and your wallet.

How Exercise Translates to Financial Savings

Medical costs in Australia have climbed sharply, with out-of-pocket expenses for chronic conditions and lifestyle-related diseases continuing to grow. According to the latest ABS data, average annual household spending on healthcare now exceeds $5,200. Regular exercise, however, has been proven to reduce the risk of costly health issues such as Type 2 diabetes, heart disease, and mental health conditions.

• Lower insurance premiums: Some private health insurers offer discounts or cashback for members who meet exercise goals tracked by wearable devices.

• Reduced absenteeism: Employees who exercise regularly take fewer sick days, which can translate to higher income and improved job security.

• Less spent on medications: Active Australians are less likely to require prescription drugs for chronic conditions.

For example, in 2025, Medibank and Bupa have both expanded their wellness incentives, rewarding policyholders for gym check-ins and daily step counts—resulting in annual savings of up to $350 on premiums for some members.

Exercise as a Productivity and Earning Booster

The link between physical activity and cognitive performance is stronger than ever. Regular movement sharpens focus, improves mood, and boosts energy levels—critical assets for climbing the career ladder or running a successful business.

• Sharper decision-making: Studies published in 2025 by the University of Sydney show that workers who exercise before or during the workday make fewer financial mistakes and report higher confidence in managing their money.

• Enhanced side hustle potential: With the gig economy booming, those with higher energy and mental clarity are better positioned to juggle multiple income streams.

Even a brisk 20-minute walk can break up brain fog, helping you spot opportunities for investment or cost-saving you might otherwise miss.

Affordable Ways to Stay Active in 2025

Getting fit doesn’t have to mean shelling out for an expensive gym membership. As government policies shift towards preventative health, more free or low-cost exercise options are available than ever:

• Active Australia app: Launched in late 2024, this government-backed app offers free guided workouts and connects users with local activity groups.

• Outdoor gyms and community events: Councils across NSW, VIC, and QLD have expanded their networks of outdoor exercise equipment and free fitness classes in parks.

• Tax deductions for fitness: While gym fees aren’t generally deductible, some self-employed Australians in physically demanding roles may be able to claim certain expenses as work-related in 2025, following the ATO’s latest clarifications.

Whether it’s cycling to work, joining a parkrun, or streaming free yoga classes at home, there are options for every budget and lifestyle.

Conclusion: The Bottom Line on Exercise and Finances

As the financial landscape evolves, Australians are recognising that physical activity is more than a health choice—it’s a financial strategy. By embracing regular exercise in 2025, you’re investing in lower healthcare costs, higher productivity, and greater earning potential. It’s time to lace up and give your finances a healthy boost.