When we think of the word wealth, the first thing that comes to mind might have something to do with finance, money, riches, and gold, wouldn’t you say? Well, we’re no mind readers, but it is a widely common association to anyone with a general perspective.
Wealth is a hot topic. People want to build wealth. People want to keep from losing their wealth. Variations occur. Wealth isn’t simple, and many forms that can be difficult for people to categorize.
The 4 Main Types Of Wealth
In no particular order, they are:
- Financial wealth
- Social wealth
- Time wealth
- Health wealth
Plus, we’ll later reveal an additional type of wealth after we go through these four main ones in detail.
Now, make no mistake, achieving a balance between all four of these types of wealth won’t come easy. That we can guarantee. But if you’re willing to put your mind to it and do the work, you exponentially increase the odds that you’ll unlock the life and beauty of what it means to be wealthy.
In this article, we’ll be walking you through each type of wealth, including what they are, how to achieve each of them, and examples you can refer to. Without further ado, let’s get into it.
4 Types of Wealth: Financial Wealth
Financial wealth is the most commonly known form of wealth. It includes all assets (i.e., money, investments, property) and personal possessions you own, minus personal debts and liabilities.
Financial wealth can be used to produce income—that is, if you sell your home or your stocks. Or it can simply be stored in a savings account to provide a safety net if times get tough.
The value of these assets may fluctuate with changes in the market; however, financial wealth generally represents what most people think of when they hear the word “wealth.”
Remember that, like all great things, it takes time to build this type of wealth. Hence, learning how to manage this type of wealth is vital, especially when you’re earning your first few hundred dollars.
There are numerous sources to learn financial management, including books or even Youtube videos from creators such as Charlie Chang, Robert Kiyosaki, and Kevin O’Leary, etc. In this day and age, there is simply no excuse for not being able to learn, so invest whatever you can as wisely as you can.
Examples of financial wealth
- Your bank account
- Mutual funds
- Index funds
- Individual stocks
- Real estate
4 Types of Wealth: Social Wealth
Social wealth is the number one way to build personal fulfillment. This type of wealth includes friends and family, healthy relationships, and the ability to spend time with them in person.
When you have good relationships with other people—both in-person and online—you’ll have someone to turn to when times are tough or celebrate when things go well.
You’ll also be more likely to feel comfortable asking for help or advice when you need it, which is a major plus if you’re starting out on your own journey toward success, whether it be financially, academically, socially, or whatever your goal may be.
You know the saying: “you are an accumulation of 5 of the people you spend time the most with”? Well, it’s true!
The key to finding the right people to surround yourself with is to be around people who are better and wiser than you in some way, preferably in a way that you’d want to become yourself.
You also need to find people that genuinely want to see you grow and likewise appreciate spending time with you. Make sure you choose wisely. It may take a while, but it’s sometimes better to be alone than it is to be with toxic people.
Examples of social wealth
- Being close with family members
- Long-lasting and forever friendships
- The feeling of true belonging to a group or community
- Having your emotional needs met
- Having a sense of companionship and comradery
- The ability to spend time with whomever you want
- Being confident in your true self
4 Types of Wealth: Time Wealth
Time is the most valuable asset of all according to some. Unfortunately, most of us think that our money is what we need to be truly wealthy.
But just look at what wealthy people consider to be of the greatest importance.
Wealthy people don’t see their time as a commodity or a currency, but rather, as an asset. They know that regardless of your net worth or income level, your time limits what you can do with your life. It’s the great equalizer in all of life. So how do you get more time for yourself?
There are two ways: directly or indirectly.
Directly means doing things that allow for more free time, such as working from home or scheduling your day so that there are fewer distractions and interruptions during peak productivity hours (usually 9-5).
Indirectly means outsourcing certain tasks so that your own non-productive hours can be filled with other productive activities like reading, exercising, and networking with other successful people in your industry or field of interest
Indirectly creating time for yourself should be the ultimate goal where you can create passive income streams that essentially make money work for you. This is great for your financial health, social health, and your time.
There are many ways to do this. You could start a business (a system that you’ve built from the ground up) where you have grown it to the point it doesn’t need you to function anymore, or it could be done by investing in assets such as real estate or renting out your home(s) on Airbnb or Vrbo.
No one should be working until the day they die. There comes a time when you need to relax and enjoy your retirement with your loved ones.
Examples of time wealth
- Being financially independent
- Building multiple passive income streams
- Being able to spend time with family and friends
- Retiring yourself and/or your parents early
- Being able to freely pursue your dream endeavors
- Traveling the world
- Sleeping in after a late night out
4 Types of Wealth: Health Wealth
There are many types of wealth, but health is often the most overlooked kind of wealth.
This is especially unfortunate in the U.S. where all kinds of priorities are given to everything else in life over one’s own health. This includes prioritizing financial and social endeavors over health.
Despite all the attention given to financial wealth, it can’t buy happiness. Health is an essential form of wealth because it allows people to function at their best. It includes not only your physical health but your mental health as well.
When we’re healthy, we have the ability to adapt and manage challenges that come our way in life, may it be in our career or personal lives.
Think of it as an investment; the more you cash in on it, the higher the likelihood of being able to generate significant returns and using that to pursue other aspirations you may want.
Health comes from our choices and actions—whether they involve exercise or diet; stress relief, meditation or prayer; honesty with yourself about your motivations for doing things in specific ways; or giving back by helping others who need support through tough times.
Plus, this is one that is dear to my heart because as my caring grandma would say, “Forget about money. Your health is more important.”
Examples of health wealth
- Exercising on a regular basis
- Being able to function at work to the best of your ability
- Making time to go to the gym at least 3 times a week
- Being functional and mobile in your old age (mobility is a strong inverse predictor of mortality)
- Practicing good sleep
- Practicing mindfulness
- Cooking at home
Intellectual Wealth – A new and emerging type of wealth
Intellectual wealth is the result of being well-read, educated, knowledgeable, and curious. It’s a combination of skills that enable you to learn new things and think critically about what you know.
The ability to learn from mistakes is also an essential component of intellectual wealth because it helps you become more successful in life.
This is the type of wealth that cannot be taken away or destroyed. People who have intellectual wealth are those who have invested in their minds by learning useful knowledge or skills, which they can use throughout the rest of their lives.
Now, you may be thinking wait, isn’t your IQ pre-determined?
There are two schools of thought.
One school of thought believes that your IQ is an innate part of you and can’t be altered. You can learn and study all you want, but ultimately, it doesn’t change the fact that you’re as intelligent as you already are, you just need to unlock its full potential which is ultimately capped.
There there’s a second, more recently developed school of thought. And this school of thought believes that IQ is not innately determined. It is something that can be developed and pushed further and further. Those who believe in this and are willing to put in the work continuously push the boundaries of what they believe their intelligence can reach.
Why is intellectual wealth an emerging type of wealth?
We’re finding more and more that the school of thought you fall into can predict your odds of success. It’s making its way into mainstream belief.
Those who believe in the second school of thought tend to do better in school and in life, which is important to note. If you’ve always thought you couldn’t improve your intellect, you don’t have to keep thinking that way. You can always change your mind. Especially if you’ve got kids, you may want to adopt this new way of approaching intelligence.
To be honest, these findings that correlate your belief with your odds of success, while potentially groundbreaking, shouldn’t be all that surprising.
In general, if you’re going to work hard at pushing the boundaries of your intellect, you’ll probably do better than the next person who doesn’t work on improving their intellect, regardless of whether you’re IQ is fixed or not.
Of all four types of wealth discussed here, developing this type may be the most difficult, but it’s also one that will potentially have the most significant impact on your overall financial success and happiness in life because it spills over into the other types.
Therefore, it’s extremely important to have a good education and to build strong relationships with other people who can help you grow intellectually.
The more knowledge you gain, the better off you’ll be when it comes time to make decisions about your career, finances, and future life.
Examples of intellectual wealth
- Being able to apply critical thinking through adverse challenges
- Commanding higher pay due to higher qualifications and increased effectiveness
- Being resourceful in any situation
- Being well-read through books, news articles, and literature
- Having essential skills like writing, active listening, and speed-reading
- Having a non-stop learning mindset, even after finishing up school
There are many ways in life to gain wealth and become successful. The most recognized is money, and we agree that it is one of the best ways to create a comfortable life. However, not at the cost of the other forms of wealth.
If we can find a way to balance all these types of wealth, then we can truly live a happy life.
Remember that these types of wealth are highly interrelated:
- Good health can help increase your potential for the other types of wealth.
- Social wealth can help create and maintain the other types of wealth.
- Intellectual wealth can give you the tools necessary to maintain and grow the other types of wealth.
We hope you’ve gained a deeper understanding of the types of wealth out there, and a clearer picture of what it really takes and means to be wealthy.
Personally, I’d focus first on your health wealth, and then tackle the others along the way. What do you think? How would you prioritize the different types of wealth out there? Let us know!