The 5 Types of Wealth: 3 Essential Takeaways for Growth
“Close your eyes and imagine your ideal day at eighty years old (or one hundred, in the case of the ninety-year-old!). Vividly imagine it. What are you doing? Who are you with? Where are you? How do you feel? The exercise forces you to begin with the ideal future end in mind—it establishes a personal definition of a successful life that can be used to reverse-engineer the actions in the present to achieve that desired end.”
―Sahil Bloom
We all dream about what our ideal future looks like—especially when we’re older. But how do we ensure that we get there? In The 5 Types of Wealth: A Transformative Guide to Design Your Dream Life, Sahil Bloom breaks down the concept of wealth in a way that challenges how we typically think about success. It’s not just about money or career achievements; true wealth involves nourishing five pillars of your life:
Time wealth: How to prioritize tasks to create more time in your day
Social wealth: How to build a network and create deeper bonds
Mental wealth: How to engage your purpose to spark growth
Physical wealth: How to maximize health and vitality
Financial wealth: How to achieve financial independence
This book was an instant add to my MBD Recommends book page. It’s holistic, contains great stories, and is full of actional advice. Here are three takeaways.
3 Takeaways from The 5 Types of Wealth
1. Social Wealth: Social Wealth: Growing in Love
Love isn’t a constant state; it grows over time, in waves, and through the seasons of life. It’s this growth that creates the depth of a lifelong bond. There are two essential rules I’ve observed that couples who successfully grow in love tend to follow—rules that have been particularly valuable in my relationship with my wife.
Rule 1: Understand Love Languages
In 1992, Gary Chapman published The 5 Love Languages: The Secret to Love That Lasts. He suggested there are five love languages that govern how romantic partners give, receive, and experience love:
Words of affirmation: Compliments, words of encouragement, and expressions of appreciation.
Quality time: Undivided attention, meaningful conversations, and shared experiences.
Gifts: Thoughtful and meaningful gifts.
Acts of service: Actions that make your partner’s life easier or more comfortable.
Physical touch: Non-sexual touch, like hugs, kisses, and hand-holding.
Taking the time to figure out each other’s love languages and speaking them can have a profound impact on your relationship.
Rule 2: Avoid the Traps
Psychologist John Gottman has spent years studying relationships and found that there are certain communication styles—what he calls “The Four Horsemen”—that often predict divorce:
Criticism: Attacking your partner's character rather than addressing the issue.
Defensiveness: Avoiding accountability by making excuses.
Contempt: Treating your partner with disrespect, often through sarcasm or mockery.
Stonewalling: Shutting down or withdrawing from the conversation.
Knowing where your relationship could go to die helps you avoid these traps. Gottman developed antidotes for these harmful behaviors:
Gentle startup (for criticism): Focus on how you feel and avoid blaming.
Take responsibility (for defensiveness): Acknowledge your partner’s perspective and offer an apology.
Build a culture of appreciation (for contempt): Ground yourself in gratitude and positive reinforcement.
Physiological self-soothing (for stonewalling): Take a break, do something relaxing, and return to the conversation when calm.
2. Physical Wealth: The Common Sense Diet
When it comes to physical wealth, it’s all about fueling your body the right way to perform at your best, look your best, and live longer. In collaboration with Ben Bruno, a personal trainer who works with athletes, celebrities, and high-powered entrepreneurs, we've boiled down nutrition to eight simple principles. The goal? To make healthy eating something you can actually stick with—and enjoy.
Eat well about 80 to 90% of the time. Save junk food splurges for the stuff you really love. Prioritize single-ingredient unprocessed foods.
Stop eating before you're stuffed. Eating to 80% satiety is a good rule of thumb.
Make sure to get enough protein for your body goals. A good baseline is 0.8 grams of protein per pound of body weight for someone who's physically active.
Avoid foods that make you feel and perform poorly. Everyone is different in this regard, so find what works and doesn't work for you.
Drink plenty of water in fluids, but limit alcohol.
Eat whole vegetables, fruits, or both at every meal. The more the better.
Find a meal frequency that works for your life. Don't buy into the dogmas of one right way to do it.
Don't take your diet so seriously that you miss out on life’s experiences.
3. Financial Wealth: Things I Wish I Knew at 22
When it comes to financial wealth, the goal isn’t just about earning more—it’s about making smarter decisions with what you already have. Sahil was inspired by Ramit Sethi, who, together, laid out a list of 20 lessons they wish they knew at 22 when it came to this type of wealth. Here are some.
Frugality is about choosing the things you love enough to spend extravagantly on and then cutting costs on things you don't love.
Have 12 months of emergency funds in cash. Build up an emergency fund to cover a year’s worth of expenses. This one move alone will reduce the financial anxiety that plagues most people.
Save and invest a set percentage of your income. Make this automatic so it’s simple and consistent. Sahil’s rule is to save 10% and invest 20%, but start wherever works for you.
Sometimes spending more saves you money in the long run. High-quality items like electronics, clothes, and cameras tend to last longer and be more reliable. It’s about getting what’s worth it for you.
Index funds are a "free lunch." Low cost, better returns, and minimal effort make index funds a great choice for most portfolios. I recommend making 90% of your portfolio in them.
Stay invested. Stop trying to time the market. A simple, automated $100 monthly investment into the S&P 500 over the last decade would have grown significantly. Let compounding work for you.
Tip more around the holidays. Show appreciation to service industry workers, like delivery drivers and trash collectors. It’s a simple way to spread positivity.
The way you feel about money is not tied to your bank balance. It’s easy to think that more money will ease your worries, but the truth is, that true peace comes from knowing your financial number and making smart decisions.
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