The 5 Types of Wealth

1. Redefine Wealth: It's More Than Just Money

Your wealthy life may be enabled by money, but in the end, it will be defined by everything else.

Beyond Financial Metrics. Traditional measures of success often equate wealth with financial prosperity, but true wealth encompasses much more. While money is important, it shouldn't be the sole focus. A fulfilling life includes time, strong relationships, mental well-being, and physical health.

The Broken Scoreboard. The conventional scoreboard, which solely measures financial wealth, is flawed. It leads to a narrow focus on money, often at the expense of other crucial aspects of life. This can result in a Pyrrhic victory, where financial success is achieved but at the cost of time, relationships, health, and purpose.

A Holistic Approach. A more comprehensive definition of wealth recognizes the importance of multiple dimensions. By shifting the focus from solely financial metrics to a broader range of factors, individuals can create a more balanced and fulfilling life. This involves actively cultivating time, social, mental, and physical wealth alongside financial security.

2. The 5 Types of Wealth: A New Scoreboard for Life

With the five types of wealth, you are no longer waiting to arrive, because happiness and fulfillment—previously a hoped-for destination—are embedded in the journey itself.

A Comprehensive Framework. The five types of wealth provide a new framework for measuring success and fulfillment. These include:

• Time Wealth: Freedom to choose how to spend your time.
• Social Wealth: Strong connections with others.
• Mental Wealth: Purpose, growth, and mental clarity.
• Physical Wealth: Health, fitness, and vitality.
• Financial Wealth: Financial security and freedom.

Interconnected Pillars. Each type of wealth is individually important, but their interplay is critical. For example, time wealth is more valuable when you have meaningful relationships to share it with. Similarly, physical wealth allows you to enjoy activities with loved ones.

Dynamic Prioritization. The importance of each type of wealth can shift across different seasons of life. In your twenties, financial and mental wealth might be prioritized, while in later years, social and time wealth may take precedence. The key is to be mindful of these shifts and adjust your focus accordingly.

3. Time is Finite: Cherish Every Moment

Always remember everyone we love, they are on loan to us for a short period of time. They are gone in the blink of an eye.

The Illusion of Abundance. Time often feels limitless, especially when we're young. However, the reality is that our time with loved ones is finite and precious. Recognizing this impermanence can spark action and lead to more intentional choices.

The American Time Use Survey. Data reveals that time spent with family and friends peaks in childhood and declines sharply after age twenty. This highlights the importance of cherishing these relationships while they last.

Actionable Awareness. Understanding the fleeting nature of time should inspire us to prioritize what truly matters. This might involve making more time for family, reconnecting with old friends, or pursuing activities that bring joy and fulfillment. The key is to use awareness as a catalyst for positive change.

4. Relationships Matter: Invest in Your Front-Row People

The only thing that matters at all is the quality of the relationships with the people we love.

The Front-Row People. Imagine your funeral: who would be sitting in the front row? These are the people who truly matter in your life. Prioritize these relationships and nurture them.

The Harvard Study of Adult Development. This longitudinal study has found that strong, healthy relationships are the best predictor of life satisfaction and physical health. Loneliness, on the other hand, can be detrimental to well-being.

Depth, Breadth, and Earned Status. Social Wealth is built on three pillars:

• Depth: Meaningful connections with a small circle of people.
• Breadth: Connection to a larger network for support and belonging.
• Earned Status: Respect and admiration earned through character and actions, not material possessions.

5. Curiosity Fuels Growth: Embrace Your Inner Child

The answers are within you—you just haven’t found the right questions yet.

The Fountain of Youth. Curiosity is essential for maintaining cognitive function, mental health, and physical well-being as we age. It keeps us engaged, motivated, and open to new experiences.

The Decline of Curiosity. Unfortunately, curiosity often diminishes with age due to societal pressures and a perceived lack of future time. However, it's crucial to fight against this decline and cultivate a lifelong love of learning.

Reconnecting with Your Inner Child. To reignite your curiosity, ask yourself what your ten-year-old self would say to you today. What would they be excited about? What would they be disappointed in? Use this as a guide to pursue new interests and embrace a growth mindset.

6. Physical Health is Foundational: Treat Your Body Like a Temple

Treat your body like a house you have to live in for another seventy years.

The Lesser World. The human body is a microcosm of the universe, deserving of care and attention. Physical Wealth is not just about appearance; it's about vitality, strength, and longevity.

The Three Pillars of Physical Wealth:

• Movement: Regular exercise, including cardiovascular and strength training.
• Nutrition: Consuming whole, unprocessed foods.
• Recovery: Prioritizing sleep and rest.

Small Changes, Big Impact. Even small improvements in these areas can have a significant impact on your overall health and well-being. Focus on consistency and gradual progress rather than striving for perfection.

7. Define Enough: Escape the Endless Chase for More

Never let the quest for more distract you from the beauty of enough.

The Trap of More. The pursuit of financial wealth can be a never-ending cycle. There's always a bigger boat, a fancier car, or a more luxurious home to chase. This can lead to dissatisfaction and a neglect of other important aspects of life.

The Enough Life. To escape this trap, define what "enough" means to you. What kind of lifestyle do you truly desire? How much money do you need to support it? Once you have a clear vision, you can focus on building Financial Wealth to that point and then shift your energy to other areas.

The Power of Contentment. True wealth lies not in accumulating more, but in appreciating what you already have. By defining your "Enough Life," you can find contentment and avoid the endless chase for more.

8. The Life Razor: Simplify Your Decisions

If you do not change direction, you may end up where you are heading.

Navigating Complexity. Life inevitably presents challenges, opportunities, and complex decisions. Without a clear framework, it's easy to get lost in the chaos and lose sight of your priorities.

The Life Razor. A Life Razor is a single statement that defines your presence in the current season of life. It acts as a guiding principle for decision-making, helping you cut through the noise and stay aligned with your core values.

Characteristics of a Powerful Life Razor:

• Controllable: Within your direct control.
• Ripple-creating: Has positive second-order effects.
• Identity-defining: Reflects your ideal self.

9. Goals and Anti-Goals: Calibrate Your Compass

There is no favorable wind for the sailor who doesn’t know where to go.

Direction, Not Speed. Life is about direction, not speed. To avoid a Pyrrhic victory, it's crucial to have a clear sense of where you're going and what you want to achieve.

Goals and Anti-Goals. A goal-setting framework that includes both goals (what you want to achieve) and anti-goals (what you want to avoid). This helps you stay focused on your true north and avoid sacrificing important values along the way.

Anti-Goals as Safeguards. Anti-goals are the things you don't want to sacrifice while climbing to the summit. They act as safeguards against unintended consequences and ensure that you're not winning the battle but losing the war.

10. High-Leverage Systems: Build Your Engine

You do not rise to the level of your goals. You fall to the level of your systems.

Systems Over Goals. While goals are important, it's the systems that drive progress. High-leverage systems are daily actions that create amplified, asymmetric forward progress.

The Messi and Buffett Strategy. Focus your energy on a few key moments and ignore the rest. When you're on, deploy your energy in a concentrated burst. When you're off, wait, conserve, and position yourself strategically.

Breaking the Fixed Relationship. High-leverage systems break the fixed relationship between inputs and outputs, creating asymmetric outcomes. This allows you to achieve more with less effort and make significant progress toward your goals.

Last updated: February 27, 2025