This is how to balance the 4 types of wealth

The 4 types of wealth

There's more than one type of wealth, of course, even though most people tend to think mostly of financial wealth.

One way to think about this is to consider these 4 categories: financial wealth, health, mental wealth, and time wealth.

If someone you know is unhappy, agitated, or miserable, it's quite likely that one part of the quadrant is not being adequately fulfilled. 

As such, it's quite a useful mental model for thinking about the wellbeing of yourself, and of your friends and family. 

I've found that the only real downside to this mental model is that it's not catchy or easy to remember! 

Which is why my friend Steve Moriarty said it's sometimes easier to remember the 4Fs: fun, fitness, finance...philosophy (OK, so that last one's a bit of a stretch!).

Balancing the quadrants - fun

We probably all know people who's life revolves around waking up, making breakfast for the family, dashing out for the school run, working flat out for a dozen hours or more, taking the kids to footy, making dinner for the family, and then popping a cold one, before collapsing in bed...and then repeating this routine practically every weekday for years to come.

There's nothing inherently wrong with this, granted, and a focus on your career and business can certainly help you to get ahead financially. 

But as far as I know we only get one crack at this life, so you do also need to make enough time in the week for fun as well...otherwise, what's actually the point of it all?

Financial wealth

There's a time and place for renting, but ultimately you need to build an asset base, whether that's through stocks and shares (equities), investing real estate, or through growing a business...or ideally all three. 

We've discussed financial wealth plenty on this blog over the years, so next let's consider...

Health and fitness

If we don't have our health, then we'll inevitably find it challenging to fulfil the other parts of the wealth quadrant. 

There are well documented benefits to exercise, in terms of personal happiness and health.

In my experience, it helps if you can find a form of exercise you enjoy partaking in, as you'll be far more likely to stick with it in that case!

Mental wealth and your personal philosophy

This is probably the hardest part of the quadrant to truly nail down.

How many of us ever take the time to think about our values, principles, and what we find stimulating, challenging, and fulfilling in life?  

I discussed how I've tried to think about this a little further in the short video below:

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