The 5 Types Of Wealth
⭐⭐⭐⭐⭐
Dear investors,
This post from Bill Ackman in February changed my life:
I admire Bill Ackman for his career. He is one of the top investors of the recent decade, and his advices should be taken seriously. So I decided to immediately buy that book.
The result: it made me rethink about my life, and my habits. How I spend my time and how I behave with others.
Is not a book about finance, but rather a guide to live your life. I believe that the purpose of investing should be wealth creation and trying to have a better life in the future.
But, saving money, investing, and achieve returns can be useless is we don’t live a life full of joy, energy and passion. In this community we focus on investing and earning money, but this is only one of the pillars of a wealthy life. We shouldn’t forget about the remaining things in life: your time, your friends, your body, etc.
I really recommend the book. It’s a 5-star book and it’s worth reading it.
For those who might be interested, here is a brief summary of the lessons provided. I’m not providing any detail as I believe the book is worth reading it.
The 5 Types of Wealth: A Blueprint for a Fulfilling Life
One of the best books I read in the last years
Rating (/5): ⭐⭐⭐⭐⭐
Difficulty: Low
Topic: Self-help book
Author: Sahil Bloom
Year: 2024
In a society dominated by financial metrics, Sahil Bloom’s The 5 Types of Wealth offers a refreshing and transformative redefinition of what it truly means to be wealthy.
Rather than focusing solely on net worth or income, the author introduces a multidimensional framework that encapsulates a holistic view of human well-being and life satisfaction. He argues that true wealth is not found in bank accounts alone, but rather in five distinct and interdependent forms: Time, Social, Mental, Physical, and Financial Wealth.
1. Time Wealth: The Currency of Freedom
Time is the only asset that is both finite and non-renewable.
💬 What I learned: ⏳ Be aware that time is finite and non-renewable. We tend to forget this because we are doing to many things at the same time, working hard… But we need to always remember that time is an asset, and same as investing, we need to use it properly. 🎯In my case, I’m trying to use my free time the best way I can, while not forgetting that every single action counts.
Unlike money, which can be earned, saved, and invested, time slips through our fingers irreversibly. Time Wealth is defined as the ability to control and prioritize how one spends time, making it the foundation upon which all other forms of wealth are built.
This form of wealth centers around three core principles:
Awareness: recognizing that our time is limited, and being mindful of how we allocate it.
Attention requires us to focus deliberately on what truly matters—our passions, relationships, and values—rather than allowing our time to be hijacked by distractions (social media, Netflix, TV….).
Control: gaining the autonomy to make intentional choices about our schedules, rather than being constantly reactive to the demands of others.
A wealthy life, in this context, means waking up and being able to decide how to spend your day—not having that decision made for you by circumstances or obligations. Whether it’s spending time with loved ones, pursuing creative passions, or simply being present in the moment, the richness of life is often measured by how free we are to enjoy it.
Note that this may seem difficult as most of us have full-time jobs that require at least 8 hours a day, or more. The key element here is to remember every day that time is limited and that we should live the free time we have. Even small actions like going on a 2-day trip with your partner once a year, booking a fixed night every month to see your friends... every little action counts.
There is a very common phrase we all use: “I don't have time”. Many times we deceive ourselves and what we really mean is “I don't want to dedicate time to it, or I don't want to make an effort”. We have to be aware of what we want to spend our time on.
In today’s world, saying “I’m busy” it’s the most normalized status. Everyone seems to try to say to the others how busy they are. Is this the right thing? We need to rethink this.
By the way, this reminds me to some fund managers that say that to manage a portfolio you need to work 24/7 because you are competing against the world. That is FALSE. And wrong. What matters is to remain focused. It’s a way of trying to say to prevent people like you entering the industry.
2. Social Wealth: The Power of Relationships
💬 What I learned: 🫂 People with strong social wealth live longer. We are not talking of having 500 friends, but just a few true friends, and a strong family. 🎯I need to take care of my closest people. The only ones that will be there to provide help whenever needed.
Human beings are inherently social creatures, and our sense of well-being is deeply rooted in the quality of our relationships. Social Wealth is the depth and breadth of our social connections, encompassing friendships, family bonds, community engagement, and professional networks.
It’s not having 100 friends, but rather a few true friends and a strong family.
This wealth type is underpinned by depth, breadth, and earned status:
Depth refers to the intimacy and trust within our close relationships. These are the people we can rely on in times of need, the ones who truly know us and accept us as we are.
If you have a problem, who will you contact? Think about it and take care of those people.Breadth, on the other hand, refers to the variety and reach of our social circles—our ability to connect with diverse people across different contexts.
Earned status speaks to our reputation and trustworthiness within our communities, built not through manipulation or charisma, but through consistent integrity and meaningful contribution.
In an age where social media often creates the illusion of connectedness, the power of this concept is huge, as some studies suggest that people who are rich in social capital tend to be happier, healthier, and more resilient in the face of life’s challenges.
This blew my mind. People with strong social wealth live longer! It makes total sense. We are happy when we are with the ones we love or with our friends, so we should take care of these relationships.
3. Mental Wealth: The Engine of Clarity and Purpose
🎯 Find your purpose and dedicate your energy to it I love investing and reading. That's why I share these posts with you.
While Time and Social Wealth provide the structure of a good life, Mental Wealth shapes its depth and direction. Mental Wealth encompasses emotional resilience, cognitive clarity, intellectual curiosity, and a sense of purpose. It is what enables us to face adversity with strength, to think creatively and critically, and to find meaning in our actions.
The pillars of Mental Wealth are:
Purpose gives our lives direction and coherence; it aligns our goals with our values and provides motivation beyond material gain.
This blog represents one of the main purposes I have in my life: to pass on the knowledge and experience gained to you the readers so that you can learn from it.Growth reflects a commitment to continuous learning and self-improvement, embracing a mindset that welcomes change and challenge.
I always try to read posts in Substack from other authors and read books. Watching documentaries also work. There is a communicator in my country that says that you need to be your own Ministry of Education and dedicate an annual budget on knowledge. Read books, buy some courses, but always learn. And remain humble, we know very little about anything.Space refers to the psychological room we need for rest, reflection, and recovery—a buffer against the constant stimuli and noise of modern life.
Some small details matter and can make a difference. As an example, my desk is surrounded by books from authors like Peter Lynch, Mises, etc. I started using warmer lights, put some relaxing music… You need to create your own spaces to feel comfortable doing what you love.
In Bloom’s model, cultivating Mental Wealth means developing habits of introspection, curiosity, and self-compassion. It means learning to quiet the mind, manage stress, and maintain a sense of perspective even when life becomes overwhelming. Those who possess Mental Wealth are better equipped to navigate complexity, make wise decisions, and lead with empathy.
4. Physical Wealth: The Foundation of Vitality
🥦 You only have one body. Take tare of it. Otherwise, why investing for the future if you don't take care of yourself? Eat well, practice sport, and most importantly, sleep. Same as investing, if you don't invest in a shit company, don't eat rubbish.
Health is often taken for granted—until it’s compromised. Physical Wealth refers to the health and vitality of the body. It includes not just the absence of illness, but the presence of energy, strength, mobility, and endurance. It is what enables us to engage fully in life and to pursue our ambitions without physical limitation.
The three foundational elements of Physical Wealth are:
Movement includes all forms of physical activity that keep the body strong, flexible, and functional—from walking and yoga to resistance training and sports.
Nutrition means fueling the body with whole, nourishing foods that support cellular health and longevity.
Recovery involves prioritizing sleep, rest, and stress management to allow the body to heal and rejuvenate.
To me, this is one of the most important things of all. Many of us invest to create wealth and a better life in several decades from now. But, why sacrificing so much of our current consumption potential in exchange to money in the future, if we don’t care about our bodies?
I really think that being healthy is mandatory for an investor, for several reasons:
If you sacrifice today’s pleasures and consumptions for the future, you need to be in good shape to enjoy the results of the investments in several decades from now.
Investing requires to reading, modelling, which are sedentary activities. We need to counter that.
After doing sport, your vitality is much higher, and it also allows to order yours ideas.
Warren Buffet and his daily cherry coke is something unique. Many super investors or great entrepreneurs take care of their bodies.
5. Financial Wealth: The Enabler of Options
🌅 Don't invest for acquiring material things in the future. Invest for yourself, and your freedom in the future.
Finally, Financial Wealth remains an essential part of the equation—not as the ultimate goal, but as a powerful enabler. Defined as the accumulation and management of resources that provide security and expand lifestyle choices, Financial Wealth allows individuals to support their values, dreams, and responsibilities.
Income generation: developing valuable skills and creating opportunities to earn.
Expense management: living within one's means and avoiding lifestyle inflation.
Long-term investment ensures that wealth grows and sustains over time, supporting both short-term needs and long-term aspirations.
Importantly, Bloom reframes financial success as a tool for freedom rather than status. Financial wealth is not about extravagant consumption or comparison; it’s about having enough to make choices aligned with your true desires.
When paired with the other forms of wealth, it becomes a powerful asset—allowing you to buy time, support your community, invest in your health, and explore your passions.
Conclusion: Designing a Truly Wealthy Life
The 5 Types of Wealth is more than a self-help book; it is a guide to reimagining success through a multidimensional lens. Sahil Bloom challenges us to abandon the narrow pursuit of financial gain and instead seek a life that is rich in time, relationships, mental clarity, physical health, and financial flexibility. Each type of wealth supports and enhances the others, and together they create a robust, resilient foundation for a fulfilling life.
In a world increasingly obsessed with superficial measures of success, Bloom’s framework invites us to ask deeper questions: What truly matters? What kind of life am I designing? What legacy am I building?
To be truly wealthy, Bloom argues, is to live with intention, balance, and alignment. It is to invest not just in assets, but in the human experience itself. And in doing so, we don’t just become rich—we become whole.
I really recommend you to read it, and redefine your priorities.
What next?
I’m currently reading What I Learned About Investing From Darwin. It’s an amazing book. I’m learning a lot from it, and I will share you my thoughts soon.
Thank you
Asymmetric
Nice one: "Time Wealth is defined as the ability to control and prioritize how one spends time, making it the foundation upon which all other forms of wealth are built."
Thanks for this, I always appreciate book recommendations.