Sahil Bloom’s new book The Five Types of Wealth explores the idea that besides the commonly thought of idea of financial wealth, there are 4 other categories of wealth we should be thinking about.
You could be very financially wealthy and yet be impoverished in one or more of the other categories. You see this a lot with well paid or high net worth individuals that are also highly stressed, too busy, or not living a life that aligns with their goals and values.
They are sacrificing and spending the wealth of other types to gain financial wealth. A more optimal solution might be using your financial wealth to obtain the 4 other types of wealth, which are ultimately more satisifying.
Sahil Bloom’s 5 types of wealth are:
- Time Wealth is the freedom to choose how to spend your time, whom to spend it with, where to spend it, and when to trade it for something else.
- Social Wealth is the connection to others in your personal and professional worlds—the depth and breadth of your connection to those around you. It is the network you can rely on for love and friendship but also for help in times of need.
- Mental Wealth is the connection to a higher-order purpose and meaning that provides motivation and guides your short- and long-term decision making.
- Physical Wealth is your health, fitness, and vitality.
- Financial Wealth: Traditional net worth. Comprises income generation, expense management, and long-term investment.
But starting to measure not just financial wealth, but the other categories as well, you can start to build a more balanced and holistic life, full of enjoyment, purpose and meaning, and satisfaction.