“Wealth is the ability to fully experience life.” (Henry David Thoreau)
There are 4 types of wealth:
- Financial wealth (Money)
- Social wealth (Status)
- Time wealth (Freedom)
- Physical wealth (Health
The majority of people think of the word ‘wealth’ in terms of finances only but this is a narrow view of what it means to be wealthy. Wealth consists of every area within one’s life — health, relationships, finances, time, so on and so forth.
Below, we’ll go through each of these 4 types of wealth to give a deeper perspective on them and how they relate to your own personal life.
Financial Wealth (Money)
Financial wealth, in other words, money is what we naturally think about when we hear the term ‘wealth.’
What does financial wealth really mean though? In my opinion, financial wealth is financial freedom which is the ability to enjoy what you like, when you like, with whom you like in terms of spending money. This is complete freedom from financial turmoil and worries which is one of the chief causes of suffering within the majority of people’s lives.
Financial wealth consists of understanding and mastering the following fundamentals:
Investing (Assets vs Liabilities)
Spending (Necessities vs Luxuries)
Budgeting (Consciously Allocating Money)
Financial Literacy (Reading, podcasts, events, etc.)
Surrounding Yourself With Financial Masters
Long Term > Short Term
Successful Behavior Change
If these fundamentals are constantly being worked on and improved upon then financial wealth will not be a problem for you. These fundamentals have withstood the test of time and absolutely work as long as you do.
Picture yourself in the future where you never have to worry about money ever again. Imagine how that would make you feel, how that would change your interactions with the world and people around you, how that would change your family situation, so on and so forth. It’s an amazing feeling, right? Well, it’s absolutely possible to achieve this kind of life one day as long as you make a commitment to the process of mastering financial wealth as well as the three other types of wealth.
Here are some of the biggest traps that keep people away from achieving financial wealth:
Lacking financial literacy
Spending more than one earns
Not investing (Includes investing in oneself)
Surrounding yourself with broke people
Short term > Long term thinking
Social Wealth (Status)
Social wealth or status is one of the most underrated types of wealth that exist because we naturally don’t think of status as a form of wealth. We understand that status has value but we never make the connection that it’s actually a type of wealth.
Social wealth consists of understanding and mastering the following fundamentals:
The Art Of Persuasion
A High Quality Character
An Understanding Of Human Nature
An Understanding Of Psychology
This is by no means a comprehensive list of all the fundamentals but these one’s listed above cover the majority of what social wealth or status consists of.
Social wealth largely comes down to how you interact within the social world. Yes, it also deals with luxury cars, houses, appearance, so on and so forth although it mainly deals with what kind of character you create and how others interact with this character and perceive it.
Here are some of the biggest traps that keep people away from achieving social wealth:
Lack of persuasive skill
Negative social reputation
Low quality character
Ignorance of human nature
Ignorance of psychology
Obsession with material wealth
Time Wealth (Freedom)
Time wealth or freedom is defined as having your own time to spend how you want, where you want, with whom you want.
Time wealth is what the majority of people really want along with the other types of wealth of course. But, time wealth is something that is rare in the modern day for the majority of people because they spend all of their time dedicating their resources, both physical and mental, to earning money.
Time wealth consists of understanding and mastering the following fundamentals:
Earning money outside of a traditional job structure
An understanding that time is finite
An understanding of how the majority of people trade time for money
Here are some of the biggest traps that keep people away from achieving time wealth:
Staying in a “secure” and conventional job structure
Acting like time is an infinite resource
Spending time on partying, drugs, and overall hedonism
Physical Wealth (Health)
Physical wealth or health is the glue that holds all the other types of wealth and one’s life together. Without the health and physical vitality of our bodies, we can achieve none of the other types of wealth or at least not in a wise and long term way.
The majority of people fail to understand that health is true wealth. They fail to invest in their bodies and minds and aren't even aware that this is even a worthy pursuit in terms of achieving all types of wealth.
Physical wealth consists of understanding and mastering the following fundamentals:
Proper Training & Movement
Healthy Environment (People & Place)
An Understanding Of Energy Systems (Break Down & Repair)
Here are some of the common traps that block people from achieving physical health:
Low Quality Nutrition
Low Quality Sleep
Lack Of Training & Movement
Lack Of Health Literacy
Unhealthy Environment (People & Places)
The Modern Day Trap Of The 4 Types Of Wealth
There is a major trap when it comes to the 4 types of wealth that the majority of people fall into and often, never come out of.
Here is the trap: Be wary of jobs that lure you in with the promise of financial wealth (money) and social wealth (status), but rob you of time wealth (freedom) and physical wealth (health).
This is the chief problem that the modern world is plagued with and it is absolutely critical to understand that you can easily fall into this trap if you don’t actively pursue what is meaningful and wise on this journey of life.
The majority of people chase money and status at the expense of freedom and health. In the short term, this “works” somewhat to the favor of the individual but in the long term, it produces nasty consequences.
An individual can achieve financial wealth and social wealth, feeling as if they are on the proper path but if they don’t take care of their time wealth and physical wealth then they are unconsciously traveling a road to the destination of personal disaster.
What good is it if you have all the money and status in the world if you don’t even have the time to enjoy yourself or physical vitality to feel good during the process? The answer is there is no good to that tradeoff. And it is a tradeoff although it is often made unconsciously as opposed to consciously.
Ask yourself the following questions to get a deeper understanding of what position you are in and if you are indeed trapped right now in your life:
“Am I seeing the value in focusing on my time and health along with my finances and status and does that reflect in my actions?”
“Where in the 4 types of wealth am I weak in and how can I improve immediately?”
“Where in the 4 types of wealth am I strong in?”
We all have the ability to achieve all 4 types of wealth within our lives and an interesting thing occurs when we do get to this point, we begin to feel the wealth of fulfillment.
The wealth of fulfillment is what occurs when all 4 of these wealth types intersect and are constantly being improved upon. This is the place where we all want to be.
Keep in mind, each of these types of wealth takes years to master and, in a sense, you could view this as a life long process that doesn’t end because there is no destination to these types of wealth. There is only constant improvement.
Each of these types of wealth requires years of dedication, practice, humility, learning, understanding, networking, so on and so forth to master so get started immediately and don’t fall into the false belief that they can’t be all worked on at the same time.
Let me know of any of your thoughts down below in the comment section and I’ll be glad to have a discussion with you!