In the world of wealth management, conventional wisdom often focuses solely on financial accumulation. However, a recent book recommendation introduced me to Sahil Bloom's 5 Types of Wealth, which offers perspective on broadening our definition of prosperity.
Bloom’s core idea is that wealth isn’t just about accumulating more money. Instead, he outlines five categories of wealth that contribute to a more fulfilling life:
Time wealth: Freedom to allocate time toward activities that generate the most personal value (e.g. work, family, exercise, travel, etc.).
Social wealth: Emphasizing that all forms of social connections contribute to health, happiness, and longevity—from family and close friends to neighborhood acquaintances.
Mental wealth: Beyond mental health, he emphasizes a commitment to lifelong learning and purposeful decision-making, leading to more deliberate life choices.
Physical wealth: Prioritizing physical well-being through nutritious eating, regular exercise, and adequate sleep.
Financial wealth: Having sufficient resources to live an enriching life, while recognizing what is “enough” for you personally to avoid compromising other forms of wealth.
For those primarily measuring success in monetary terms, whether you’re a business owner, a startup entrepreneur, or financial executive, then this book may be helpful. Bloom structures it with chapters dedicated to each type of wealth, offering practical suggestions for improvement in each area. A quick skim of the book may be enough to broaden your scoreboard.
Personally, while the book did not offer significant new insights for me, I found Bloom’s storytelling, particularly his transition from the grind as an investment banker to a more balanced life, engaging and relatable.
I grew up in a household where dad always said “Everything in moderation.” As I’ve matured and started a business and a family, I find myself embodying this wisdom increasingly each day. Truly internalizing this principle of moderation has been a journey, especially given my background in hedge funds and Ironman triathlons, pursuits often characterized by extremes. Now, I often find myself repeating my dad’s advice to my own kids.
When we talk to clients about personal finance, we often return to the concept of mindfulness. For instance, if our desire to travel the world with our children is hindered by an expensive house, or a work schedule that pays really well but precludes taking time off, it warrants reevaluation (in my opinion). Similarly, we must be mindful about our choices, actively shaping rather than passively allowing the winds of life to dictate our course. I believe this mindfulness around our finances and life decisions leads to a similar broad perspective as Bloom’s five types of wealth.
We hope this first book review prompts reflection on your own holistic definition of wealth, and we look forward to sharing more insights that go beyond just money and investments.
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