The 5 Types of Wealth by Sahil Bloom

The 5 Types of Wealth

A Transformative Guide to Design Your Dream Life

Sahil Bloom | Harper Collins | © 2025 | 384 Pages

“The 5 Types of Wealth” presents a revolutionary framework for measuring and building true wealth across five dimensions: Time, Social, Mental, Physical, and Financial. The book provides practical tools and systems for developing each type of wealth while maintaining balance across different life seasons.

“Never let the quest for more distract you from the beauty of enough. My name, Sahil, means ‘the end of the journey.’ For me, this book marks the end of my first journey, all made possible because I rejected the broken scoreboard and centered my life on the new one. In the pages that follow, I will show you how to do the same. It is the journey of a lifetime. I hope you enjoy it.” (p. 12)

“Never let the quest for more distract you from the beauty of enough. My name, Sahil, means ‘the end of the journey.’ For me, this book marks the end of my first journey, all made possible because I rejected the broken scoreboard and centered my life on the new one. In the pages that follow, I will show you how to do the same. It is the journey of a lifetime. I hope you enjoy it.” (p. 12)

Sahil Bloom is a successful entrepreneur, writer, and content creator who reaches millions through his insights and biweekly newsletter, “The Curiosity Chronicle.” As managing partner of SRB Ventures and owner of SRB Holdings, he combines practical business experience with deep research into human potential and wealth creation. A Stanford University graduate with economics, sociology, and public policy degrees, Bloom brings academic rigour and real-world application to his work.

This book is particularly relevant for business owners as it redefines wealth beyond traditional financial metrics. It gives a comprehensive framework for building a genuinely wealthy life that aligns with the challenges and aspirations of small business owners who often struggle with work-life balance and measuring success holistically.

True wealth extends far beyond financial metrics, and by measuring and developing all five types of wealth, individuals can create a more fulfilling and sustainable approach to success.

“Every successful person will give you some variation of the same advice: Focus on the most important things”

Sahil Bloom

Redefining wealth

“In a famous articulation often attributed to Peter Drucker, the Austrian-born management guru, “What gets measured gets managed.” The statement implies that the metrics that get measured are the ones we prioritize. In other words, the scoreboard is important because it dictates our actions—how we play the game.”

Most of us grew up thinking wealth meant having lots of money in the bank. I know I did. But Sahil Bloom’s “The 5 Types of Wealth” turned my understanding of wealth entirely on its head.

What he’s done is brilliant in its simplicity. He’s taken this narrow view of wealth we’ve all been taught and expanded it into something far more meaningful. Instead of counting pounds and pence, he shows us five ways we can be wealthy – and they’re all connected.

Think of it as building a portfolio for your life, not just your investments. Each type of wealth adds something essential to the mix. When you get the balance right, magic happens – you create a genuinely rich life in all the ways that matter. These definitions aren’t merely theoretical concepts; they’re practical measuring sticks against which we can evaluate our choices and priorities. Let’s explore each dimension in Bloom’s own words:”TIME WEALTH is the freedom to choose how to spend your time, whom to spend it with, where to spend it, and when to trade it for something else. It is characterized by an appreciation and deep understanding of the precious nature of time as an asset—its value and importance.””SOCIAL WEALTH is the connection to others in your personal and professional worlds—the depth and breadth of your connection to those around you. It is the network you can rely on for love and friendship but also for help in times of need. It provides the texture that allows you to appreciate the other types of wealth. What good is the freedom to control your time if you don’t have anyone special to spend it with?””MENTAL WEALTH is the connection to a higher-order purpose and meaning that provides motivation and guides your short- and long-term decision making. It is grounded in a pursuit of growth that embraces the dynamic potential of your intelligence, ability, and character and an engagement in lifelong learning and development.””PHYSICAL WEALTH is your health, fitness, and vitality. Given its grounding in the natural world, it is the most entropic type of wealth, meaning it is more susceptible to natural decay, uncontrollable factors, and blind luck (positive or negative) than other types. Physical wealth is defined by a focus on the controllable actions around movement, nutrition, and recovery and the creation of consistent habits to promote vigor.””FINANCIAL WEALTH is typically defined as financial assets minus financial liabilities, a figure often referred to as net worth. On your new scoreboard, there is an added nuance: Your liabilities include your expectations of what you need, your definition of enough. If your expectations rise faster than your assets, you will never have a life of true Financial Wealth because you’ll always need more. ”

Knowing about these five types of wealth is powerful. But what excites me about Bloom’s framework is how practical it is. He’s taken these big ideas and turned them into something we can use daily.Think about it – most of us have no real way to measure whether we succeed in life beyond looking at our bank balance. This framework changes that. It gives us a proper toolkit for measuring what matters, making better decisions (both big and small), and designing a life that grows with us as our priorities shift.I love that Bloom doesn’t just leave us with theory. He walks us through exactly how to put this into practice. You start by taking his Wealth Score quiz to see where you stand across all five types of wealth. Then, you create not just goals but anti-goals. These are the things you explicitly don’t want in your life. It’s like drawing boundaries around what you won’t accept.From there, you pick specific systems from his wealth-building guides and keep yourself honest with monthly and quarterly check-ins. But here’s what resonates with me: his reminder that we don’t have to wait for some magical future moment to feel wealthy.

As he puts it, “You don’t have to wait to arrive; you can feel like you’ve arrived every single day.”That’s what real wealth is about – not some endless chase, but creating a rich and meaningful life right now.

“We all want the same thing—and it has very little to do with money.”

Sahil Bloom

“Your wealthy life may be enabled by money, but in the end, it will be defined by everything else.”

Sahil Bloom

“If you have a life devoid of Time Wealth, you are trapped in a perpetual loop of busyness, running faster and faster but never making progress, with little control over how time is spent and whom it is spent with.”

Sahil Bloom

The Life Razor

“In a moment of chaos, Commander Jim Lovell (played by Tom Hanks) proposes a solution: ‘Now, look, Houston, all we need to hold attitude is one fixed point in space. Is that not correct?’ He receives a quick affirmative reply from the mission command center. Holding the controls and peering out a small triangular window to his left, Lovell slowly moves the spaceship, and a familiar blue planet comes into view. ‘Well, Houston, we’ve got one,’ he says, staring intently at the Earth in the center of the small triangle.”

I’ve been fascinated by this concept called the Life Razor from Bloom’s “The 5 Types of Wealth”. It’s precisely what many of us need – a simple but powerful tool for making decisions that align with who we want to be.

Think of it as your compass – a clear statement that guides how you show up in your current season of life. What I love about it is that it cuts through all the noise and gets to the heart of who you are and how you want to act when you’re being your best self. For those of us running businesses, it’s particularly valuable because it helps us ensure our business decisions support our whole life, not just our bottom line.

What makes a good Life Razor?

Three things matter:

1. It needs to be something you can control – a specific action you can take
2. It should create positive ripples across other areas of your life
3. It must reflect who you truly are and who you want to be

Some examples that clicked with me: “I wake up early and do hard things”, “I never miss a recital”, or “I never let a friend cry alone”. See how each one captures something bigger – discipline, family commitment, or being there for others?

When facing tough business choices, ask yourself, “What would someone who [your Life Razor statement] do right now?” It’s brilliant because it brings you back to your core values rather than getting caught up in the pressure of the moment.

This tool is potent in business because it helps prevent burnout. Instead of getting caught in the endless hustle, your Life Razor keeps you focused on what truly matters. It’s like having a trusted advisor who always reminds you of your deeper purpose.

Want to create your own? 

Start by thinking about the actions and qualities that represent your ideal self. 

Ensure it ticks those three boxes – controllable, ripple-creating, and true to your identity.

And remember, as your life evolves, your Life Razor might need to change too. That’s perfectly normal.

Here’s what I’d love you to do:

• Take a moment to reflect on your core values.
• What matters most to you?
• What kind of person do you want to be? 

Then, craft your own Life Razor statement. 

Once you have it, try using it to make one important decision this week – whether in your business or personal life. I’d love to hear what you come up with.

After all, building a business isn’t just about making money – it’s about creating something meaningful while staying true to ourselves. The Life Razor helps us do exactly that.

“Your Life Razor is a single statement that will define your presence in the current season of life.”

Sahil Bloom

“In a world that pulls you to blend in, maintain your uniqueness, to live on your terms in a world that pulls you to blend in, is the only way to realize your full potential and live a fulfilled, texture-rich existence.”

Sahil Bloom

“Like a mountain climber caught in a blizzard, you’ll become blinded by it, lose all points of reference, and wander aimlessly, praying for the storm to subside. With one, you’ll see clearly—the storms won’t be any less turbulent, but you’ll be well equipped to navigate through to the other side.”

Sahil Bloom

Your True North

“On my thirteenth or fourteenth birthday, my parents gave me a small silver compass. Inscribed inside was a short message: Sahil—So you may always know where your true north lies. Mom & Dad. Their deeper message: Life is about direction, not speed.”

This next big idea is the fascinating idea of True North. It resonated with me because it’s about having direction rather than just speed (something many of us entrepreneurs struggle with, right?). In the Thrive Code, this is part of your Business GPS, which includes goals and anti-goals.

The concept came from a lovely personal story – Bloom’s parents gave him a compass inscribed with “So you may always know where your true north lies.” What a beautiful metaphor for living with purpose and intention.

But here’s where it gets practical. To find your True North, Bloom suggests we need both goals and what he calls ‘anti-goals’. I love this approach because it’s so complete. Your goals are what you aim for – your mountain summit if you like. But your anti-goals? They’re the things you absolutely won’t sacrifice on your climb. 

Think about it – how often do we set ambitious goals without considering what we might accidentally destroy along the way? That’s where anti-goals come in. They help us spot potential disasters before they happen.

Of course, having goals and anti-goals isn’t enough on its own. You need what Bloom calls ‘high-leverage systems’ – your daily actions that create significant results over time. As James Clear puts it (and I love this quote): “You do not rise to the level of your goals. You fall to the level of your systems.“

This framework helps you balance all five types of wealth – Time, Social, Mental, Physical, and Financial. What’s clever is how it recognises that different seasons of life need different focuses. 

For instance, you might be in a season where career growth takes centre stage, so financial and mental wealth become priorities. But – and this is crucial – you still need systems to maintain your other types of wealth. Or you’re in a family-focused season where time and social wealth matter most. Either way, you’re never wholly neglecting any area.

Want to put this into practice? Here’s what Bloom suggests:

1. Write down your clear goals – both long-term dreams and medium-term targets

2. List your anti-goals – what you absolutely won’t sacrifice

3. Create high-leverage systems – daily actions that move you forward

4. Check in monthly with three key questions:

•  What matters right now, and do my goals still align?
• Are my systems supporting my goals?
• Am I getting close to any of my anti-goals?

Every quarter, Bloom recommends a deep dive. It’s not your usual business review – it’s more personal than that. You ask yourself some pretty challenging questions:

• What’s giving me energy right now?
• What’s draining my energy?
• Who are the ‘boat anchors’ in my life?
• What am I avoiding because I’m afraid?

These are great questions to add to your monthly and quarterly reviews.

What I love most about this whole approach is how practical it is. You keep moving towards your goals, but not at the cost of everything else that matters in your life. 

Because what’s the point of success if you lose yourself along the way?

It’s not about perfect balance – it’s about intentional progress aligned with your values.

“There is no favorable wind for the sailor who doesn’t know where to go.”

Seneca

“If we fix the scoreboard to measure our wealth more comprehensively, our actions will follow. We’ll play the game right. Right scoreboard, right actions.”

Sahil Bloom

“To paraphrase Munger, anti-goals are about knowing where you’re going to (metaphorically) die so you never go there. If the goals are your summit, anti-goals are the things you don’t want to sacrifice while climbing—like your toes, your sanity, and your life.”

Sahil Bloom

The Dimmer Switch

“An old school of thought would contend that your focus on each type of wealth exists in a binary state: on or off. It would say that you can have, at most, two types flipped on at any point in time and that the other three types would have to be flipped off. The fundamental problem with this is that if one remains off for too long, it can never be turned on again.”

Here’s something from Bloom’s book that completely changed how I think about balance – he calls it the Dimmer Switch concept. You know how most advice tells us we can only focus on one or two things at a time? “Want to grow your business? Say goodbye to your social life!” That kind of thinking. Well, Bloom challenges this head-on, and it makes so much sense.Instead of turning areas of our lives entirely on or off like light switches, he suggests treating them more like dimmer switches. Think about it – when you dim a light, it’s not off. It’s just at a lower intensity. Brilliant, right?This hit home for me because I’ve seen what happens when people (myself included) completely neglect parts of their lives for too long. Try switching off exercise for a year – getting back to fitness becomes ten times harder. Or ignore your relationships while building your business – suddenly, you’re successful but lonely.What I love about the Dimmer Switch approach is how it takes the pressure off. You don’t have to be smashing goals in every area of your life all the time (thank goodness!). Instead, you can adjust the intensity based on your current season.Let me give you an example. Say you’re in the early stages of your business. You might turn up the ‘financial wealth’ and ‘mental wealth’ dimmers to focus on growth and learning. But – and this is key – you keep the other areas (time, social, physical wealth) dimmed down but still on. That could mean a quick workout three times a week instead of daily or one social evening a week instead of three.Or you’re entering a season where family needs more attention. You might dial up your social and time wealth while keeping your business ticking over at a lower intensity. The point is, nothing gets switched off completely.Want to try this approach? Here’s what works for me:

1. Get clear on your current season – what needs your attention right now?
2. Set goals that make sense for where you are
3. Create simple systems that keep all areas ticking (even at a low level)
4. Check in regularly – are your dimmers set right?
5. Watch out for any area getting too dim