Types of Wealth

Wealth is more than money. Financial wealth has an exact economic meaning, assets minus liabilities, while wider forms of wealth describe the resources and abilities behind a secure, capable, and fulfilling life.

A useful view of wealth reaches past a single balance sheet. It asks whether your resources give you security, capacity, connection, choice, meaning, and perspective.

What you own in financial terms once you subtract what you owe.

• Cash and savings
• Stocks, bonds, and funds
• Home and property equity
• Retirement savings
• Ownership in a business
• Other assets of value

Measure it: Net worth = total assets − total liabilities.

Build it: spend less than you earn, keep an emergency fund, clear expensive debt, invest on a steady schedule, own productive assets, diversify sensibly, and give compounding time to work.

Real control over how you use your limited time.

• Flexible schedules
• Free time
• Control over your own calendar
• Time with family and friends
• Rest and play
• Freedom from needless obligations

Build it: put high-value work first, drop low-value commitments, automate repetitive tasks, delegate when it pays off, set up systems and routines, and guard your focus time and personal time.

More money with no control over your time can still leave you feeling poor.

The physical and mental capacity to live well, work well, and enjoy life.

• Physical health
• Mental well-being
• Energy
• Strength and mobility
• Restful sleep
• A long, healthy life

Build it: move your body regularly, eat a balanced diet, sleep enough, manage stress, steer clear of harmful substances, and keep up with preventive care.

Your health shapes how well you can enjoy almost every other form of wealth.

The knowledge, skills, abilities, and experience you collect over time.

• Education
• Professional skills
• Technical knowledge
• Creativity
• Problem-solving skill
• Experience and expertise
• Capacity to learn

Build it: read and study, pick up valuable skills, practice with intent, ask for feedback, take on hard problems, and learn from what happens.

Economists often count knowledge and skills as part of your human capital.

How strong and healthy your relationships and networks are.

• Family
• Friendships
• Professional relationships
• Communities
• Mentors
• Trusted connections
• Social support

Build it: give time to your relationships, stay trustworthy, help others, keep in touch, meet people beyond your usual circles, and build relationships where support flows both ways.

Strong social capital can offer emotional, practical, intellectual, and professional support.

Enough resources and autonomy to make real choices about your life.

• Freedom to pick your work
• Freedom to pick where you live
• Freedom to turn things down
• Freedom from money pressure
• Freedom to chase your own projects
• Freedom to switch direction

Build it: cut needless dependencies, grow your savings, build skills that travel, create several options, keep fixed costs manageable, and gain more control over your work and time.

Goals, values, and activities that give your life direction and meaning.

• Meaningful work
• Personal values
• Contribution to others
• Long-term goals
• A feeling of progress
• Something worth striving for

Build it: decide what matters to you, set goals that mean something, act in line with your values, contribute beyond yourself, and revisit your priorities on a regular basis.

The meaningful experiences, memories, and perspectives you gather over a lifetime.

• Travel and adventure
• Creative pursuits
• Celebrations
• Challenges you overcame
• Time with the people you love
• New ideas and cultures

Build it: try new things, create moments worth remembering, follow your curiosity, spend on purpose on the experiences you value, and stay present while you live them.

Eight dimensions make up one life.

Financial wealth

Provides resources.

Time wealth

Provides control.

Health wealth

Provides capacity.

Knowledge wealth

Provides capability.

Social wealth

Provides connection.

Freedom wealth

Provides options.

Purpose wealth

Provides direction.

Experience wealth

Provides memories and perspective.