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

by Sahil Bloom

Failing to connect with a purpose bigger than myself Giving up on all learning that does not provide direct financial utility Losing all the space in my life as I pursue new activities and growth

Creativity has the power to look pain in the eye and turn it into something else.

How we spend our days is, of course, how we spend our lives. What we do with this hour, and that one, is what we are doing. —Annie Dillard, The Writing Life

I focus on energy, not interests or passions. Follow your energy, because it is the truly scarce resource. When you have energy for something, you go deep on it, you push to grow, you gain life from it. It fuels you.

To assess the likelihood of a pursuit becoming energy-creating as your competency improves, ask yourself, “Do I love the good version of this?” In other words, if you imagine yourself at a modest or improved competency level at the pursuit, does it give you energy?

Most of your time is spent on pursuits in your Zone of Genius. Your remaining time is spent on pursuits in your Zone of Hobby. Minimize the time spent on pursuits in your Zone of Danger. Eliminate the time spent on pursuits in the dead zone (with the exception of those that survive the test in the prior note).

The Feynman technique is a learning model that leverages teaching and prioritizes simplicity to help you develop a deep understanding of any topic. It involves four key steps: Set the stage. Teach. Assess and study. Organize, convey, and review.

The losing groups thought in linear, logical terms and achieved a linear, logical outcome. The winning group thought differently.

Socratic questioning (or the Socratic method) is a process of asking and answering questions that stimulate critical thinking to expose and vet underlying assumptions and logic. To put it into action, follow this general structure: Start with open-ended questions. Propose ideas based on these questions. Probe these ideas with progressive questioning. Repeat until the best ideas are developed.

Socratic questioning takes time. It shouldn’t be used on low-cost, easily reversible decisions. But when you encounter a high-stakes decision with the potential for asymmetric rewards in your business, career, or life, it’s worth engaging in the exercise. It will empower you to think differently and uncover the path most likely to generate the asymmetric, risk-adjusted returns.

Eight thinking prompts I have found particularly useful: If I repeated my current typical day for one hundred days, would my life be better or worse? If people observed my actions for a week, what would they say my priorities are? If I were the main character in a movie of my life, what would the audience be screaming at me to do right now? Am I hunting antelope (big important problems) or field mice (small urgent problems)? How can I do less but better? What are my strongest beliefs? What would it take for me to change my mind on them? What are a few things I know now that I wish I’d known five years ago? What actions did I engage in five years ago that I cringe at today? What actions am I engaged in today that I might cringe at in five years?

One win from the day One point of tension, anxiety, or stress One point of gratitude

The 1-1-1 method works because of its simplicity: One win allows you to appreciate your progress. One point of tension allows you to get the topic off your mind and onto the paper. It’s therapeutic. One point of gratitude allows you to reflect on the most important things in your life.

The disciplined pursuit of a life of Physical Wealth is a catalyst for growth: It initiates a mindset shift—it reminds you that you are in control, that you have the power. That mindset shift creates ripples that extend well beyond the core to every area of life.

That visualization of your future should provide clarity on the present: If you continue your current daily actions, will you be dancing or sitting? What actions do you need to add or adjust in the present to more closely align your future with your ideal vision for it? What would your eighty-year-old self want you to do today?

“Treat your body like a house you have to live in for another seventy years.” Your body is, quite literally, the house that you’re going to live in for the rest of your life. And yet a lot of people treat that house like trash—they drink and eat too much, don’t sleep enough, rarely move, and avoid the basic investments and repairs necessary to keep it maintained.

Put simply, the 80/20 rule says that a small number of inputs drive most of the outputs.

Most of the results are driven by a few simple inputs—completing basic daily movement, consuming whole, unprocessed foods, and prioritizing sleep and recovery.

They are the three controllable pillars of Physical Wealth: Movement: Daily body movement through a combination of cardiovascular exercise and resistance training; activities to promote stability and flexibility Nutrition: Consumption of primarily whole, unprocessed foods to meet major nutrient needs, supplementing as necessary to meet any micronutrient needs Recovery: High-quality, consistent sleep performance and other recovery-promoting activities

In other words, a little bit of exercise goes a long way and a lot of exercise goes a longer way.

Aerobic: Low intensity; relies on the oxygen you breathe to sustain activity Anaerobic: High intensity; relies on the breakdown of sugars to sustain activity

The development and preservation of muscle, power, and strength is critical for a healthy, enjoyable life.

“Resistance exercise and strength training is the number one way to combat neuromuscular aging.”

Level 1: Move your body for at least thirty minutes per day. Level 2: Move your body for at least thirty minutes per day; engage in two to three specific cardiovascular training sessions per week and one to two resistance-training sessions per week. Level 3: Move your body for at least thirty minutes per day; engage in three or more cardiovascular training sessions per week (for a total of at least 120 minutes of aerobic training and 20 minutes of anaerobic training) and at least three resistance-training sessions per week incorporating stability and flexibility training.

A surplus of calories (consuming more than you use) leads to weight gain; a deficit (consuming less than you use) leads to weight loss; a balance (consuming exactly what you use) leads to weight stability.

Proteins: The building blocks necessary for muscle growth, tissue repair, and more Carbohydrates: A primary source of energy for our bodies Fats: A source of energy that supports cell growth, organ health, and more

Amount: Seven to eight hours per night, with a consistent schedule for sleep and wake times. Environment: The sleep setting should be dark, quiet, and cool. Routine: Winding down with a relaxing routine in the evenings promotes the release of chemical signals that it is time to sleep. Viewing morning sunlight for just five to ten minutes on a clear day or fifteen to twenty minutes on an overcast day and low-angle afternoon sunlight have both been shown to regulate the release of cortisol and the circadian rhythm (our natural chemical internal clock).

Level 1: Seven to eight hours of sleep Level 2: Seven to eight hours of sleep in an optimized sleep environment (a dark, cool, quiet room) Level 3: Seven to eight hours of sleep in an optimized sleep environment; a fixed sleeping time window with morning and afternoon sunlight exposure to regulate circadian rhythm and improve sleep quality; additional recovery methods

feel strong, healthy, and vital for my age. I move my body regularly through a structured routine and have an active lifestyle. I eat primarily whole, unprocessed foods. I sleep seven or more hours per night on a regular basis and feel rested and recovered. I have a clear plan in place to allow me to physically thrive into my later years.

Quiz

Choose a challenge level from the three options to follow. Bronze is a good place to start if you are new to these practices, while Gold is more appropriate if you consider yourself advanced. Use a simple spreadsheet or template to track your daily execution. You can find a tracking template at the5typesofwealth.com/​tracker. Create accountability by finding a partner (or partners) to take on the challenge with you. Make a group message or system for communicating your performance on the daily challenge. Message Done upon completion of each item on the list. Once you’ve completed one level of the challenge, you can consider taking on the next level in the following month.

When you arise in the morning, think of what a precious privilege it is to be alive—to breathe, to think, to enjoy, to love. —Marcus Aurelius

Wake up: Establish a fixed waking schedule for weekdays and weekends. Hydrate: Drink sixteen ounces of water (with superchargers as desired). Move: Choose a few simple strength, mobility, or flexibility movements to get your body moving and the blood flowing. Get outside: Fifteen minutes of movement outside sets the tone for the day. Focus: Set a block of time to work on the most important tasks for the day.

The composition of a training week is as follows: Day 1: Full-body strength plus optional aerobic cardio Day 2: Aerobic cardio (sixty minutes) Day 3: Full-body strength plus optional aerobic cardio Day 4: Aerobic cardio (sixty minutes) Day 5: Full-body strength plus optional aerobic cardio Day 6: Anaerobic cardio (twenty minutes) Day 7: Light recovery and rest

Low stress: This is a state of low arousal. This state is necessary for recovery. Optimal stress: This is the optimal state of arousal. It’s the Goldilocks level—not too hot, not too cold, just right. When you’re in this state, you are well positioned to perform important tasks. High stress: This is a state of high arousal, the overstressed position we so often find ourselves in. It may lead to a complete shutdown from system overload.

The 4-7-8 Method A particularly effective method for triggering the calm state necessary to fall asleep, the 4-7-8 method is one that I use almost daily.[15] How it works: Breathe in through your nose for four seconds. Hold your breath for seven seconds. Exhale for eight seconds. Repeat two to three times.

How it works: Inhale through your nose twice, first slowly, then quickly. Long exhale through your mouth to a natural stop without forcing the breath. Repeat two to three times.

Use a spreadsheet or template to track your daily execution. You can find a tracking template at the5typesofwealth.com/​tracker. Find a partner (or partners) to take on the challenge with you. Create a group message or system for communicating your performance on the daily challenge. Message Done upon completion of each item on the list.

“I’ve got something he can never have…the knowledge that I’ve got enough.”

That thing you once longed for becomes the thing you can’t wait to upgrade.

You define the rules of your game.

You will never have true Financial Wealth if you allow your expectations—your definition of enough—to grow faster than your assets. There is no perfect antidote. Hedonic adaptation means our chase for more is genetically hardwired, but forcing the definition of enough out of the subconscious mind and into the conscious mind is a start.

What does your Enough Life look like? Where do you live? What do you have? What are you and your loved ones doing? What are you focusing on? How much financial cushion do you have?

Your aim then becomes building Financial Wealth—through income generation, expense management, and long-term investment—up to the point where it enables that Enough Life that you have defined.

“A gold medal is a wonderful thing, but if you’re not enough without it, you’ll never be enough with it.”

Kublai Khan’s invention represented a giant leap forward—the first instance where a piece of paper, cheaply mass-produced and with little to no inherent value, was deemed valuable and guaranteed by the force and authority of the government. Paper money slowly spread around the world because it enabled faster, more efficient commerce and growth.

The modern money game is played in a digital world, where money exists merely as numbers on a screen (in fact, the total amount of money in the world is multiple orders of magnitude higher than the total amount of coins and notes). A transaction between two parties used to involve a physical exchange, but it is now as simple as pressing a button and watching the numbers go down on one screen and up on the other. When you consider the amount of money in your account, it may feel tangible, but it is no more than a number on a lit-up screen. Your trust that you will wake up tomorrow and the number on that screen will be correct—and that it is worth something—keeps the system flowing.

In a financial universe that tempts your imagination, focus on what is real.

To succeed, all you need to do is stick to the basics and play your game long enough.