The 5 Types of Wealth: A Transformative Guide to Design Your Dream Life

Bloom asked several older people what they wished they knew when they were younger. Most of their responses had to do with nurturing romantic relationships and friendships, as well as taking care of their physical and mental health. Bloom was intrigued to realize that no one mentioned money.

The author clarifies that money is important, and that people with lower incomes do feel happier when they have more money. However, once people have enough money to meet their needs, additional money does not seem to increase life satisfaction. Yet despite these findings, people tend to expect that more wealth will make them happier, and they therefore become trapped on a psychological “treadmill” of chasing wealth. Bloom cites Harvard research showing that even very wealthy people are prone to this bias, as multimillionaires tend to say that they would need much more money to achieve true life satisfaction. 

The author recounts a true story from a very wealthy friend of his. After making $100 million upon the sale of his company, Bloom’s friend was excited to take his own friends and family on a yacht trip. When they showed up to board the boat, however, his friends were impressed by the even bigger, more luxurious yacht in the marina, making him feel deflated. Bloom uses this moment as an analogy for life, observing that there will always be a “bigger boat” (21) for people to compare themselves to, needlessly decreasing their satisfaction.

The author warns against “pyrrhic victories,” which he defines as successes that come at too high a cost. For instance, if a promotion at work comes at the cost of one’s health or relationships, it isn’t a real victory. Bloom recommends consciously measuring every important aspect of life, rather than just money. The ideal life “scoreboard” measures each kind of “wealth,” including time, social, mental, physical, and financial wealth.

Bloom acknowledges that everyone’s journey is different and that there will always be an ebb and flow to different seasons of people’s lives. He argues that difficult moments in life tend to bring people more clarity and important realizations, and he recommends that people recognize their problems and take action to change their lives.

By using Bloom’s “scoreboard,” which measures all five types of wealth, it is possible for someone to find their “wealth score.” By ranking each statement from 1-5, people can measure how much “wealth” they have. The higher the score, the better. This allows them to see which areas of their life are weaker than others. This quiz is available online for free.

In philosophy, a “razor” refers to anything that makes people more efficient. For instance, Hitchen’s razor contends that anything put forth without evidence can be dismissed without evidence. By developing a “life razor,” people can save themselves needless worry by focusing on their priority. For instance, former Netflix CEO Marc Randolph always kept a commitment to having dinner and quality time with his wife on Tuesday evenings, no matter what. Randolph’s “life razor” helped him to maintain a happy family life while still pursuing a demanding career.

Bloom uses his own life razor as another example: he decided to coach his son’s sports team. This decision is “controllable,” because he makes decisions for himself and the team, and it is “ripple-creating” because it positively affects his relationship with his son and wife. It is also “identity-defining” because it adds to Bloom’s identity as a father, husband, and community member. He encourages developing a single-statement “life razor” that can guide one’s actions. Some examples include, “I always tuck my kids into bed,” or “I do one good deed a day” (41). Bloom argues that people can and should adapt their life razor to reflect their priorities in different eras of their life.

To establish a purposeful direction in life, Bloom recommends developing explicit goals and anti-goals. Goals should be centered around clear achievements, with smaller goals built in along the way to ensure momentum. Anti-goals, on the other hand, help overcome potential problems by explicitly stating what they are and making a plan to avoid them. For instance, a goal might be to lead a company, with the anti-goals of not sacrificing health, family relationships, or moral values. Bloom advises people to always develop anti-goals each time they establish a long-term goal.

The author argues that once people have their life’s direction and goals mapped out, they can work on developing life systems that ensure success. He points to soccer player Lionel Messi and investor Warren Buffet as successful people whose systems promote efficiency. Rather than working harder, these men work “smarter,” saving their energy and intention for times when it is the most impactful. Messi tends to walk around more than most players, waiting for the perfect opportunity to score, while Buffett ignores most business pitches and waits for the ideal one.

Bloom advises people to decide how they can prioritize different areas of their lives according to their needs. Rather than thinking of turning their energy off or on, he uses the analogy of a dimmer switch to illustrate how people can slightly reduce their attention in one area of their life without giving up on it completely. For instance, new parents might prioritize time and social wealth while merely maintaining financial and mental wealth. Bloom reveals that when his son was born, he left his high-paying job and found that this reprioritization was “deeply empowering” (50).

To ensure that people stay on track, Bloom recommends developing a monthly ritual reflection on goals and anti-goals in order to decide whether one’s life habits are supporting those goals or not. He encourages people to keep asking themselves the tough questions that will help them make their dream lives a reality.