Many people think that wealth is only about money, property, and jewelry, but there are other types of wealth besides them. According to James Clear we can divide these into four types. Along with financial wealth, the other three are also very important in everyone’s life. If you balance these four, you can lead your life happily.
1. Financial Wealth
Building a stable financial foundation through smart investing, saving, and money management.
What: The type of wealth most people think of money, assets, investments
Examples:
• Retirement account
• Diversified investments
Emergency savings
• Disposable income
Why:
Let’s us enjoy basic comforts and pay for necessities
• Contributes to time and health wealth
• Enables retirement and risk-taking
How:
Spend less than you make
Save as much as possible
• Invest wisely, with a long-term perspective
▲ Caution: Chasing financial wealth at the expense of everything else is not wise – money indeed does NOT buy happiness
2. Social Wealth
Nurturing meaningful relationships, networks, and communities that bring joy, support, and a sense of belonging.
What: Some think of it as status, others as your relationships and connections
Examples:
• Family
Close friendships
Professional network
• Local community
Why:
Social connections are crucial to mental health and happiness
• Support network in hard times
• Sense of belonging
How:
• Check in on friends and family often
Spend device-free time with them
Help others (neighbors, via charity)
• Join a group of like-minded people
▲ Caution: The connections must be meaningful – a few genuine and close relationships beat lots of weaker ones
3. Time Wealth
Having the freedom to control your schedule, prioritize what matters, and enjoy a healthy work-life balance.
What: Control over your schedule, and freedom on how you spend your time
Examples:
Flexible work schedule
• Time for loved ones
• Time for hobbies
• Ability to be spontaneous
Why:
Time is finite and expendable
• It’s often our most neglected wealth
• Freedom of time leads to greater life satisfaction
How:
• Spend financial wealth to buy time wealth (ex: pay to delegate)
Set boundaries and say no
Consider flexibility as much as money when picking jobs
▲ Caution: Chase freedom, not doing more through efficiency or productivity
4. Health Wealth
Cultivating physical, mental, and emotional well-being through self-care, healthy habits, and a balanced lifestyle.
What: Your physical and mental well-being
Examples:
Daily exercise
Great diet
Strong sleep
• Mindfulness
Why:
You can’t enjoy the other types of wealth without this one
The consequences of ignoring health are the most dire
How:
• Sleep at least 7 hours each night
• Get physical activity every day
Eat a balanced and nutritious diet
Incorporate mental health practices: gratitude, mindfulness, meditation
▲ Caution: More than any other, seek professional guidance and help here
Conclusion:
Balance all 4 types of wealth
Don’t chase financial wealth at the expense of others
Nurture meaningful relationships
Prioritize freedom and health
Remember, wealth is not just about money!