Today I wanted to talk about wealth! We all want wealth, but did you know there are several types of wealth? Financial, social, physical, mental and time.
I caught Sahil Bloom on the Girls Gotta Eat podcast... If you haven't heard of Girls Gotta Eat, you gotta check it out. Absolutely love their podcast. They had Sahil Bloom on their show and I absolutely loved his thoughts on wealth! Sahil is an entrepreneur and writer, has popularized the idea that true wealth extends far beyond money. In his framework, he identifies five types of wealth and that's what I wanted to talk about today.
So the goal here is to have a BALANCED life. Now that's not a new theory by any means but I don't know that many people think about those other areas of life as wealth because I think most of us equate wealth to money and things! So let's start with the obvious example of wealth and that's financial wealth!
1. Financial Wealth (Money)
Financial wealth is the most commonly recognized form of wealth—it represents assets, investments, and the ability to afford a desired lifestyle. While money alone does not guarantee happiness, it provides security, opportunities, and the ability to support loved ones. However, an obsession with financial wealth can lead to neglecting other aspects of life, such as health, relationships, and personal well-being. The key is to earn, save, and invest wisely while ensuring that money serves as a tool for freedom rather than an end goal. I have to share this with you… there was a time when I was sitting on a lot of stock options with a particular company that equated to a lot of money and as I communicated with other colleagues who were in the same position and discussing what we were gonna do with all the money and when we quit our jobs, etc., and I realized not everybody has something they're dying to do… or a passion that they're dying to do if they didn't have to work. I realized that for some people, they really don't know what they would do if they retired from their career or came into an amount of money that afforded them the ability to do whatever they wanted.. They were struggling to figure out what they would do with the money and all the freedom while I was trying to figure out which one of my passions I wanted to pursue because I had several of them and assumed everybody else did too, but not everybody does and I think that dovetails nicely into the Sahil's theory that they may not have been diversified in the other areas of wealth in their life. More recently, I had a good friend sell his business and he made quite a bit of money and could have sold it years ago for similar amounts, but didn't, and he confessed that the reason was that he didn't know what he would do… He loved coming into the office and being the guy in charge and it was just his comfort zone...he also worried about his employees and what would happen to them...so he put it off because he was worried about what he would do if he sold his company.
2. Social Wealth (Relationships & Influence)
Social wealth refers to the strength of one's relationships, network, and reputation. It includes family, friendships, professional connections, and the ability to positively influence others. A strong social circle provides emotional support, opportunities, and a sense of belonging. Those with social wealth often find that their relationships open doors that money alone cannot. Investing time in meaningful relationships, helping others, and maintaining integrity are critical for building social wealth. Again, this is not a hot take but very few people look at these relationships as "wealth" and everybody is so busy trying to keep up with work, family, kids and all the information we are bombarded with everyday that there is little time to nurture relationships. What happens is when they finally reach a point where they think they are going to be financially secure, they've let a lot of their relationships fall by the way side. Now I'll bet people would tell me that they reach out to friends and family members every so often but is it quality interaction or is it a quick conversation in the car on the way to another appointment or while the kids are nagging you in the background etc.? Are you really sharing your life? Are you being vulnerable so they can help you and also being vulnerable is going to take your relationship to a deeper and more meaningful level. I often have 30 minute or even an hour discussions with my sister and some friends during the day...could I have made a little more money during that time? I guess so but I cherish the deep relationships I have developed and nurtured and so I consider myself socially wealthy!
3. Physical Wealth (Health & Vitality)
Health is often overlooked in discussions of wealth, but without it, all other forms of wealth lose value. Physical wealth includes overall well-being, energy levels, and fitness. No amount of financial success can compensate for poor health. Prioritizing exercise, nutrition, sleep, and stress management ensures that individuals can fully enjoy other aspects of life. Many successful people recognize later in life that neglecting their health for financial gain was a costly mistake. This is becoming more and more important in my life as I get older. I've had family members that have passed away and even friends passing away! But dying is not the only thing that's going to keep you from enjoying your life with your friends and family. There are many health issues that would keep you from traveling or having enough energy to be social or God forbid even leave your house… Waiting till you have enough money or till you retire to do all these things maybe too late not because you died, but because you're not healthy enough to do them! Again, so many people are so busy trying to make enough money to support all the things they've bought and all the things they think they needed at the expense of their health only to turn around and realize it's too late to do a lot of the things they dreamed of. I say sacrifice some income opportunities in order to do some of those things earlier rather than later… I called this, taking some retirement off the table early. The only catch is, you don't want to outlive your money… I've always said if I only knew when I was gonna die. My financial planning would be a breeze.
4. Mental Wealth (Knowledge & Mindset)
Mental wealth consists of knowledge, emotional intelligence, and a resilient mindset. It includes continuous learning, creativity, and the ability to handle life's challenges with a positive outlook. Those who invest in mental wealth—through reading, experiences, and self-reflection—develop the adaptability and confidence needed to thrive in uncertain situations. A strong mind is a foundation for success in every other area of life. This is a tricky one and a challenging one and one that will continue to challenge us till the day we die I would imagine. I did an episode on happiness and the theory of Something to do, someone to love, and something to look forward to" which I will post in the coming weeks. Theory describes something to do, someone to love and something to look forward to as key elements of happiness, and I think the best part of this theory is that it's really simple and people can wrap their brain around it. At least I can wrap my little brain around it. Another simple thing that I like to do and I highly recommend is spending five minutes in the morning doing gratitude. I've written down (and now memorized), a handful of things. I'm thankful for.. including my health, my family, my friends, my career, where I live...you know Think about the fact that you could've been born in any previous year where life was much much harder than we have it now… A time where an infection would kill you..now we have antibiotics, a plague that wiped out 30%-60% of the population, all the information in the entire world is in the palm of your hand! Even at this time of chaos and turmoil in our country, we live in the safest and best country in the world... Imagine all the other places you could've been born! Anyway, I just run down that list in my head in the morning to remind myself about all the things I am thankful for because by the end of the day after competing in a career and interacting with people and seeing all the material things on TV and social media that I can't afford I sometimes feel like I don't have enough, I'm not doing enough and that reminder in the morning resets my mind in a positive fashion.
5. Time Wealth (Freedom and Control of Your Life)
Time is the most finite resource we have, making time wealth one of the most valuable forms of prosperity. It represents autonomy over one’s schedule, the ability to spend time on meaningful activities, and freedom from being controlled by external demands. Many people chase financial wealth only to realize they have little time to enjoy it. Structuring life in a way that allows for travel, hobbies, family, and personal growth is the ultimate measure of success and I agree wholeheartedly with this. I have had to sacrifice monetarily in order to work for myself for the last 30 years, but I wouldn't trade it for anything!
Summary
So summarizing here, in the pursuit of a wealthy life, balance is essential. Prioritizing one type of wealth at the expense of others can lead to dissatisfaction. The truly "rich" person is not just someone with a large bank account, but someone who enjoys financial security, deep relationships, good health, a sharp mind, and the freedom to live on their own terms.
I want to close with this little story that I find priceless...it really makes you think about what you're doing with your life...Sahil shared this on the podcast and I think it's very thought provoking...It's called The Parable of the Mexican Fisherman and it's about an Investment Banker and a fisherman and it goes like this...
The Fisherman & The Banker
An American investment banker was at the pier of a small coastal Mexican village when a small boat with just one fisherman docked. Inside the small boat were several large yellowfin tuna. The American complimented the Mexican on the quality of his fish and asked how long it took to catch them.
The Mexican fisherman replied, “only a little while.”
The American then asked why didn’t he stay out longer and catch more fish?
The fisherman said he had enough to support his family’s immediate needs.
The American then asked, “but what do you do with the rest of your time?”
The fisherman said, “I sleep late, fish a little, play with my children, take siestas with my wife, Maria, and stroll into the village each evening where I sip wine, and play guitar with my amigos. I have a full and busy life.”
The American scoffed. “I have an MBA from Harvard, and can help you,” he said. “You should spend more time fishing, and with the proceeds, buy a bigger boat. With the proceeds from the bigger boat, you could buy several boats, and eventually you would have a fleet of fishing boats. Instead of selling your catch to a middle-man, you could sell directly to the processor, eventually opening up your own cannery. You could control the product, processing, and distribution,” he said. “Of course, you would need to leave this small coastal fishing village and move to Mexico City, then Los Angeles, and eventually to New York City, where you will run your expanding enterprise.”
The fisherman asked, “But, how long will this all take?”
To which the American replied, “Oh, 15 to 20 years or so.”
“But what then?” asked the fisherman.
The American laughed and said, “That’s the best part. When the time was right, you would announce an IPO, sell your company stock to the public and become very rich. You would make millions!”
“Millions said the fisherman– then what?”
The American said, “Then you could retire. Move to a small coastal fishing village where you could sleep late, fish a little, play with your kids, take siestas with your wife, and stroll to the village in the evenings where you could sip wine and play guitar with your amigos.”
Something to think about huh? Anyway, that's it for today...I hope you got a little something out of this and remember...Be Bold - Be Kind - Be You
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