You should be aware of the four types of wealth. I’ll explain why each one is important, how to accomplish them, and give some examples. In most articles, people clarify that There are 5types of wealth which is true but in this article, You will notice the reason why clarify mine as four types. Check below to see the four types of Wealth:
- Financial Wealth (Money)
- Social Wealth (Support)
- Time Wealth (Freedom)
- Health Wealth (Physical & Mental)
Understanding the various types of wealth is critical. If you weren’t aware, you could spend your entire life attempting to achieve financial or social wealth, only to discover later that you sacrificed other types of wealth in the process. Most jobs try to entice you with the promise of increased financial wealth. This is the type of wealth that most people in our society strive for.
As a result, we will begin with financial wealth.
Financial Prosperity
Financial wealth is the amount of money or assets that a person has amassed. This type of wealth is the most visible and is what the majority of people in our society strive for. The pressure to accumulate financial wealth is everywhere, and it can have a negative impact on your ability to accumulate other types of wealth.
As a result, I would not concentrate solely on accumulating financial wealth. Building financial wealth takes time as well, so avoid “get rich quick” schemes.
Financial literacy is the first step toward financial wealth.
It is critical to learn how to manage your finances. If you don’t, someone else will, and it won’t be in a good way.
The best place to start is at your local library, where you can find personal finance books.
If you want to become wealthy, you must first learn how to manage your money properly.
Financial Wealth Examples:
- Money In The Bank
- Accumulated Assets
- Net Worth
- F-You Money
- Investments
Financial wealth can also be used to achieve time wealth, which is the goal of the financial independence/retire early (FIRE) movement.
Most people seek financial wealth in order to be able to say they are “rich” and purchase more expensive toys.
They fail to recognize that money does not buy happiness, and that the pursuit of more money can lead to the rat race.
It would be beneficial if you worked to achieve financial wealth while also focusing on other types of wealth.
Financial wealth is important, but it is not the be-all and end-all. Learn more about the distinction between Rich and Wealthy.
Bob Marley’s ones said, Money is made up of numbers, and numbers never end. If it costs money to be happy, your quest for happiness will never be complete.
That being said, financial wealth can make your life easier and help you achieve time wealth (freedom).
Social Capital (Support)
Your social wealth, or social connections in society, is the second type of wealth. This is determined by your interactions with others, such as family, friends, and the community. Your social wealth is influenced by the people you associate with.
You should try to surround yourself with good people who have good intentions if you want to increase your social wealth.
You can accomplish this by expanding your social network, spending more time with positive influences, and removing negative social connections.
Take the time to nurture the positive relationships you have with others. Reaching out to relatives can also help you rekindle lost family relationships.
A simple phone call can make a big difference. Finally, if you notice that you have negative social connections, try to eliminate or reduce them.
This will provide you with a solid social circle that will support you in both good and bad times.
Examples Of Social Wealth:
- Fulfillment
- Positive Interactions
- Strong Family Ties
- Social Connectedness
- Self Confidence
- Being Part Of A Community
- Lasting Friendships
- A Sense Of Belonging
Because humans are social and emotional beings, accumulating social wealth is critical. A socially wealthy person can rely on others to meet their emotional needs.
Time Wealth
The ability to choose how and where you spend your days is defined as time wealth. most people overlook this type of wealth. Most people are so focused on acquiring financial wealth that they overlook time wealth.
Working two or three jobs to make more money is pointless if you deprive yourself of other types of wealth. Working more to make more money depletes social wealth by preventing you from spending time with family and friends. You can’t nurture those bonds, and they deteriorate. Because you are busier than ever, your time wealth suffers.
There is also no time to learn how to manage money or follow your life’s passion. Later, I’ll show you how it deprives you of your mental wealth.
Separating your income from your time is the best way to achieve time wealth. Stop exchanging your time for money.
Learn how to create a passive income stream and begin earning money while you sleep.
Earning passive income requires effort and time up front, but the rewards can be long-term.
In my FIT Strategy, I’ve shared my best strategies for generating passive income.
Examples Of Time Wealth:
- Earning Passive Income
- Financial Independence
- Having Time For Family/Friends
- Early Retirement
- Freedom To Pursue Your Passions
- Travel
I’ve also worked on increasing my time wealth by reducing phone notifications. I would waste hours a day responding to unimportant notifications. Now I rarely hear my phone ring, but when it does, I know it’s important. I use the extra time to strengthen the relationships required to build social wealth.
You can also use the time to focus on yourself, as I’ll explain in the section on health wealth.
Health Wealth
When you actively care for and improve your physical and mental health, you have health wealth. This can be accomplished through exercise, a healthy diet, and coping with stress, anxiety, and other mental stressors. This improves your overall happiness and well-being.
I recently polled 1,000 people to see if they had any money worries in the previous month. According to the findings, approximately 71% of people are stressed out about money.
We are, after all, in the midst of a pandemic. However, I was surprised by how many people are concerned about money.
Poor mental health makes money management more difficult, and anxiety about money leads to worse mental health.
I should also emphasize that physical health, such as exercise, diet, and proper sleep hygiene, leads to better mental health.
Everything is interconnected.
Improving your health wealth comes down to developing good habits and living a balanced lifestyle.
Eating healthy foods, practicing portion control, limiting sweets, and getting enough sleep are all good habits.
Being active, carefree, and optimistic are all aspects of lifestyle design.
Examples Of Health Wealth:
- Sleep Hygiene
- Properly Managing Your Thoughts
- Positive Thinking
- Healthy Eating & Portion Control
- Living With Purpose
- Exercise Regularly
- Living A Stress-Free Life
Conclusion
These are the four types of wealth and how to obtain them. The goal is to consistently improve your life in each type of wealth. Don’t let society or your job entice you to pursue only financial and social wealth. Time and health wealth are both valuable.
You will live a more fulfilled life if you improve in all areas of wealth. Even small changes to your daily routine can lead to good habits and significant long-term results.
Start small in each category, and you’ll soon feel the benefits of a more prosperous life.
