Your wealthy life may be enabled by money, but in the end, it will be defined by everything else.
This quote is from a book by Sahil Bloom. The title is 5 Types of Wealth: A Transformative Guide to Design Your Dream Life. I love this book for two reasons.
Firstly, because of the quote above.
The second reason is that it recognises that there are no fixed timelines on which you can change, fail, learn, grow, and adapt. Everyone’s seasons and definitions of balance are unique.
Quote by Naval Ravikant
For instance, how you approach your early twenties is probably different how you lived (or live) your late twenties. Your twenties might have been your foundation-building season. And then your thirties then become your compounding season.
If you are already moving fast, your thirties may already be your family-building season.
Or that is what your forties will be for. There’s no predetermined guide for this journey. That’s why life is so beautiful.
Now let’s come back to why I mentioned Sahil’s book.
The 5 Types of Wealth
Sahil Bloom believes there should be a new scoreboard when measuring wealth.
There must be Time Wealth, Social Wealth, Mental Wealth, Physical Wealth and Financial Wealth. He believes these are the five pillars to living a truly wealthy life. And I agree with him.
Let me tell you why.
Beyond Money: 5 Types of Wealth
#1: Time Wealth
This is the freedom to choose how to spend your time, who to spend it with, where to spend it, and when to trade it for something else.
Time wealth means having enough free time to do things you enjoy. It’s when you don’t feel rushed or too busy. People with time wealth get to choose how they spend their days.
If you disregard your time wealth, you become trapped in a loop of busyness, running faster and faster but never making progress.
#2: Social Wealth
The connection to others in your personal and professional worlds is your social wealth.
Social wealth is having good friends and family who care about you. It’s the depth and breadth of your connection to those around you. The more people who love and support you, the more social wealth you have.
When you neglect your social wealth, you will lack the weighty relationships that provide lasting satisfaction and joy.
#3: Mental Wealth
This is the connection to a higher-order purpose and meaning that motivates and guides your short and long-term decision making.
Mental wealth is having a happy, calm mind. People with mental wealth can solve problems without getting too upset. They can stay positive even when things get hard.
If you disregard your mental wealth, you live a stagnant life with self-limiting beliefs, low-purpose activities, and continuous stress.
#4: Physical Wealth
Your health, fitness and vitality are your physical wealth.
Physical wealth is having a healthy body that works well. People with physical wealth do not get sick very often. They always feel strong.
They always have energy to run and play.
When you neglect your physical wealth, you are at the mercy of the natural physical deterioration that robs you of enjoyment, especially in the latter half of life.
#5: Financial Wealth
This is simply your financial assets minus financial liabilities.
Financial wealth is having enough money for what you need and some of what you want. People with financial wealth can easily buy food, clothes, and have a safe home. They also have money saved for later, so there are no worries about paying for things.
If you disregard your financial wealth, you live a life of continuously matching inflows and outflow, a never-ending chase for more.
Let’s unpack this.
The Old Definition of Wealth was Limited to Only Money
The problem is we are told to “hustle” for financial wealth, but never taught to balance the other four.
Neglecting Social Wealth creates loneliness, isolation and burnout. When you also always sacrifice your Time Wealth for Financial Wealth every time, your Physical and Mental Wealth often suffer. Others wait until they lose their health to start appreciating Physical Wealth.
Sometimes, we focus too much on getting money (financial wealth). We then forget about the other kinds of wealth that make life good. For instance, without a healthy body and mind, it’s difficult to fully enjoy and cultivate the other areas.
5 Types of Wealth
All 5 Types of Wealth are Important for a Happy Life
Having all five types of wealth makes life better and more satisfying.
When you have enough time, you can do what you love or rest without feeling bad. Having good relationships gives you people who help when things are hard and who share your happy moments.
A healthy mind helps you bounce back from problems and think clearly. A healthy body gives you energy and lets you live longer to enjoy life.
Together, these help you do more than just get by. You can live well, feel connected to others, and have purpose.
Learn to Convert Wealth from one type to another
The wealthy life comes from knowing when and how to make these wealth transfers.
Sometimes, the wisest move is to convert Financial Wealth into Time Wealth by outsourcing tasks that drain your energy. Or maybe you’ll trade some Social Wealth by declining a few invitations to boost your Mental Wealth through solitude and reflection.
You can also focus more on a specific type of wealth for a specific season of your life.
In your twenties, building Financial Wealth might take precedence. Then your forties might be the season to cultivate deeper Social Wealth. The key is recognising which wealth type needs your attention during each life season, without completely neglecting the others.
Ask yourself – which of the 5 types of wealth do you need the most? Which ones are you neglecting right now?
Cultivate all the Five Types of Wealth
By consciously cultivating all five types of wealth, you build a robust and resilient foundation for your life.
You gain the freedom to enjoy your resources (time wealth), the support to navigate challenges (social wealth), the clarity to make meaningful choices (mental wealth), the energy to pursue your passions (physical wealth), and the security to live without constant financial worry (financial wealth).
Overcoming the problem of focusing on only one form of wealth leads to a life that is not only prosperous but also deeply satisfying and sustainable.
