Table of Contents

The Book in Three Sentences

In this book summary of The 5 Types of Wealth, you’ll learn that money isn’t the only type of wealth. A wealthy life may involve money, but it will be defined by everything else. This book gives you a blueprint to build your life around five types of wealth: Time Wealth, Social Wealth, Mental Wealth, Physical Wealth, and Financial Wealth.

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The 5 Types of Wealth Summary

Prologue: The Journey of a Lifetime

We all assume that money leads to happiness, but that’s not the case. We never question the assumption that having nice things is the same as being happy. The problem with this assumption is that moving the goalpost is easy, which means we’ll never reach a destination. Pursuing external things will never lead to a fulfilling life.

We all want the same things, and none of them involve money. We want time, people, purpose, and health. These are what the author calls the pillars of our future. The purpose of money is to help us achieve everything else. By itself, though, money is meaningless. We must stop measuring the quality of how much money we have. How much time we have, who we share it with, what we do, and how we feel determines our success.

Part I: Designing Your Dream Life

Chapter 1: One Thousand Years of Wisdom

The author suggests we ask older people, “What advice would you give to your younger self?” as part of your annual birthday ritual. The most powerful exercise you can conduct to grow is to observe the passage of time. Another good strategy is to seek advice not from the richest people around you but from the wisest. The wisdom the author obtained resulted from over a thousand years of experience (that’s what the age of all the people he asked questions amounted to). The old people he talked to mentioned numerous things, but when talking about the secret to living happily, all the answers had something in common: none of them mentioned money. Money can only buy happiness when it helps you take care of the fundamental things in life (such as food and a roof over your head). Past that point, money won’t do anything for you.

Chapter 2: The Five Types of Wealth

Some victories damage you to the point that they feel like a defeat. One such battle is using money as a metric to determine our happiness. If the single measure you use to determine your success in life is money, this implies that any other goals aren’t worth your time and effort. Examples of important goals include happiness, close relationships, health, and growth. These are battles worth fighting for, but we often ignore them because money is our only priority.

With this in mind, the author suggests we use the following scorecard from now on, something he calls the five types of wealth:

Time Wealth: how you spend your time, who you spend it with, and where you spend it.
Social Wealth: your connection to others.
Mental Wealth: this provides purpose and meaning and determines your decisions.
Physical Wealth: your health, fitness, and vitality.
Financial Wealth: your net worth.

The five types of wealth give you a new way to measure life. By measuring the right thing, you’ll take the right actions and get the best outcomes.

Chapter 3: The Wealth Score

The wealth score establishes a new baseline based on a series of questions. There are five for each type of wealth, and the idea is to make you aware of your weakest wealth so you can start prioritizing it. Here’s the online quiz if you want to take it yourself.

Chapter 4: The Life Razor

In philosophy, a razor is a term that refers to principles that let you remove unnecessary explanations. Nowadays, its applications are broader, and we can use razors to simplify the decision-making process. Some examples of razors include:

Occam’s razor: the simplest explanation is often the correct one.
Hanlon’s razor: never attribute malice to stupidity.
Hitchen’s razor: anything that doesn’t have evidence can be dismissed without it.

Razors are rules of thumb that simplify life. Sometimes, it’s easy to fall victim to chaos, but that’s when you rely on decision-making heuristics that help you navigate life. For instance, if getting the job position you want means sacrificing spending time with your loved ones and living stressed, the goal isn’t worth it.

To achieve your goals, you need systems. This was first suggested in James Clear’s Atomic Habits. Systems are essentially the daily actions that lead to progress. Similarly, you also want leverage which increases your inputs to deliver significantly better outputs. The combination of these two ideas is what Bloom calls high-leverage systems, an idea where your daily habits result in asymmetric progress. In simpler terms, you spend less time and energy to get better results.

Focus on the few decisive moments that matter the most and ignore everything else. When you make a decision, make it final. When you don’t, conserve energy for the moment when making that decision matters the most. Never operate under systems where one unit of input equals one unit of output. Break that relationship to create asymmetric outcomes.

Despite what people say, you can’t make equal progress in all areas of your life at the same time. Depending on how old you are and your priorities, you should focus on one area at a time intensely while you work on the other areas on autopilot. If you’re young, you can prioritize your career while you exercise after work. As your life changes, so will your priorities. With this in mind, you must recalibrate your compass regularly.

There’s no way to establish goals that are the same for everyone. Nevertheless, everyone has the right answers within themselves, they just have to make themselves vulnerable and figure out the best path. One way to find out your true north is by writing a letter to your future self, addressing anything you consider important.

Part II: Time Wealth

Chapter 6: The Big Question

“How many moments do you have remaining with your loved ones?”

Everyone we love will be gone sooner or later. When allocating time to activities, always prioritize loved ones because you might regret it one day. One of the best ways to reflect on the passage of time is by having children. As painful as it is to admit, life goes by fast, and once certain chapters are over, you can’t go back to them. Our time in this world is finite. As we age, we’ll probably see certain loved ones less and less. Cherish your relationships while you have the time. Apart from your children and close friends, the most important relationship you’ll have is the one you have with your partner.

This has the largest impact on your happiness, so choose well. Appreciate alone time too because you’ll spend more time with yourself as you age. Time is the only currency that doesn’t discriminate. Whether you’re rich or poor, time is a universal truth. Whether we want to admit it or not, we’re always running out of moments and experiences.

Chapter 7: A Brief History of Time

Death is inescapable, which is why most religions and philosophies have tried to make sense of it. This is the case because we have a need to control time. No amount of progress will give us what we desperately want: immortality. Productivity, for instance, creates the illusion that we’re “ahead” by doing certain activities faster. Running means you’ll get faster, but that’s meaningless if you never think about the direction you’re going. Modern society celebrates busyness and creates unnecessary chaos. Protecting your focus from distractions is one of the most important resources you can develop. You may have all the money in the world, but without time, you’re still poor. Even if you run faster than everyone else, the goal is the same for everyone because the goalpost moves as well. The goal isn’t to run faster but to run smarter.

Chapter 8: The Three Pillars of Time Wealth

Sometimes, you can create time. By prioritizing loved ones, for instance, you can figure out how to see them more often. This helps create memories that wouldn’t exist otherwise. This idea illustrates what the author calls the three pillars of Time Wealth. Here they are in order of importance:

Awareness: understand the finitude and impermanence of time.
Attention: focus on what matters and ignore everything else.
Control: choose how you spend the time you have.

Building one of these pillars gives you a foundation for the next. By building the three, you cultivate Time Wealth. Past a certain point, money won’t make you happy, but time will. Time is our most important asset, yet we keep throwing it away by engaging in unimportant activities. With enough time, you can harness your attention and focus on what matters. Deep attention leads to impressive outcomes (this is another example of an asymmetry). Once you understand the importance of time, you don’t see it as a fixed asset but as something you create. Time then becomes something you control, which is the ultimate goal in life.

Chapter 9: The Time Wealth Guide

The author suggests a series of high-leverage systems to build the pillars of Time Wealth.

The Time Wealth Hard Reset (Awareness)

Write down the name of someone you love but don’t see enough. By doing a hard reset, you commit to seeing that person more often. This is a way to create time with people we love.

How to Establish Your Baseline: The Energy Calendar (Awareness and Attention)

To focus your attention, you need to be aware of how you’re spending your time. The Energy Calendar can help you with this. The idea is to go through your calendar and color-code events. Green is for activities that leave you energized, yellow is for neutral activities, and red is for energy-draining activities. After that, prioritize activities that give you energy, maintain or delegate neutral activities, and delete or delegate energy-draining activities.

How to Establish Priorities: The Two-List Exercise (Awareness and Attention)

Write down a list of twenty-five goals, circle the top five, and avoid the ones you didn’t choose at all costs because they’re a distraction.

How to Manage Priorities: The Eisenhower Matrix (Awareness and Attention)

Make a distinction between urgent (something that demands your attention) and important (something that advances a goal). With that in mind, categorize tasks into one of four quadrants. Focus on what’s important and urgent. Important and not urgent tasks give you long-term value. The not important and urgent tasks drain your time and energy, so delegate them when possible. Finally, not important and not urgent tasks are a waste of time, so ignore them whenever possible.

How to Simplify Your To-Do System: The Index Card (Attention)

Parkinson’s Law says that “work expands to fill the time allotted for its completion.” Give yourself constraints to be more efficient. For this purpose, establish short time blocks of mental tasks, batch email in small windows, and shorten meetings.

How to Stop Procrastination: The Anti-Procrastination System (Attention)

Procrastination is part of our DNA. We’re hardwired to seek immediate pleasure because that allowed us to survive for thousands of years. In the modern world, though, procrastination holds us back. The author suggests the anti-procrastination system, which has three steps:

Deconstruction: turn large, complex projects into small, manageable tasks.
Plan and (stage) creation: create a plan that’s specific (what you’ll do) and time-bound (when you’ll do it).
Action: this is the hardest part, but the goal is to start moving.

How to Concentrate Attention: The Flow State Boot-Up Sequence (Attention)

The ability to enter a flow state is important in the modern world. The idea is to start slowly and gradually work more and more. For this purpose, you can use a boot-up sequence, a series of fixed, sensory operations you perform in a specific order to prepare for the day ahead. You can go for a walk, drink a specific beverage, or listen to your favorite playlist. As you repeat the activity, it’ll eventually become a habit.

How to Create Time Leverage: Effective Delegation (Attention and Control)

To delegate tasks effectively, follow three main principles:

Delegate low-risk tasks that don’t demand oversight
Provide clear expectations
Allow for infinite feedback loops.

How to Streamline Commitments: The Art of No (Control)

We should say no to commitments more often. First, never commit to something you wouldn’t do right now. Second, determine if the task in question falls within your professional priorities.

How to Manage Your Time: Time-Blocking and the Four Types of Professional Time (Control)

Time blocking is a time-management strategy where you divide days from your calendar into blocks of time you assign to different activities. You don’t have to schedule personal time, but you should schedule professional time. The author identifies four types of professional time: management (meetings, calls, email, and so on), creation (writing, coding), consumption (reading, studying), and ideation (journaling, walking, or brainstorming).

How to Fill Your Newly Created Time: The Energy Creators (Control)

With all the time you’ve created, you prioritize the activities that give you energy, joy, or mental clarity.

Chapter 10: Summary: Time Wealth

Time Wealth has three pillars: awareness, attention, and control. The idea is to understand your priorities so that you can focus on them and take control of your life.

Part III: Social Wealth

Chapter 11: The Big Question

“Who will be sitting in the front row at your funeral?”

This chapter is about deepening relationships with loved ones while you can, so when you die, the people you care about the most are in the front row at your funeral. You can’t have a deep connection with everyone. You save that for the few people that matter in your life.

Chapter 12: The Unique Social Species

Caring about others is one of the pillars of a civilized society. We crave love, connection, cooperation, and support. We’re a highly social species. For our species, relationships are everything. Without human connection, our health deteriorates substantially. Loneliness leads to depression and anxiety, which means we can’t ignore Social Wealth.

Chapter 13: The Days Are Long, But the Years Are Short

Even if you achieve everything you set out to achieve, you’ll be miserable if you don’t spend enough time with your children. The magic years refer to the first decade of a child’s life. This is when you’re their favorite person in the world. Once that window closes, children make friends and eventually find partners and have children of their own. You should spend as much time as possible with your children during the magic years. If you build a strong foundation, it’ll last for decades, and even if it means prioritizing your kid over work, you’ll never regret it. When avoiding work is impossible, always explain why it’s important.

Chapter 14: The Three Pillars of Social Wealth

There are three pillars to Social Wealth.

Depth: the meaningful bonds you establish with a few people.
Breadth: a longer circle of people who offer spiritual or cultural support.
Earned status: the respect, admiration, and trust of your peers.

Chapter 15: The Social Wealth Guide

Bloom suggests ten systems for building social wealth.

Social Wealth Hacks I Wish I Knew at Twenty-Two

These are a series of hacks the author and Arthur C. Brooks came up with. Here are some examples:

Love is in everyone
Partners are supposed to be part of a team
Focus on relationships
Misery is contagious
Write down the interesting things people say.

How to Assess Your Baseline: The Relationship Map (Depth and Breadth)

The relationship map is a tool to assess your relationships:

List your relationships
Assess them (do you interact with them frequently or infrequently?)
Map the relationships using a two-by-two grid. The X-axis goes from demeaning to supportive, and the Y-axis goes from rare to daily.

Prioritize relationships that are supportive and frequent. Increase the frequency of interactions for highly supportive and infrequent relationships. Remove the frequency of ambivalent and frequent relationships.

How to Navigate Romantic Relationships: Two Rules for Growing in Love (Depth)

The most important decision you’ll ever make is who you choose as your partner. What you want isn’t to fall in love but to “grow” in love. Growth, in this case, refers to deepening the bond you have. For this purpose, you want to understand love languages and avoid the traps that often ruin relationships. They are criticism defensiveness, contempt, and stonewalling.

The Life Dinner: Creating a Monthly Relationship Ritual (Depth)

Establish a fixed monthly date when you talk about life with your partner. This should become a ritual where both people get the chance to share their feelings.

How to Improve Relationship Communication: Helped, Heard, or Hugged (Depth)

When someone close to you has a problem, ask if they want to be helped, heard, or hugged. All three options are valid, but they change from person to person.

How to Make Conversation: The Four Principles of a Master Conversationalist (Breadth)

Create doorknobs: questions or statements that encourage the other person to open up. Rephrase questions that let people share stories.
Be a good listener: use words, facial expressions, body language, or phrases to keep the other person talking.
Repeat and follow: repeat important points and share your own stories regularly.
Make eye contact: use eye contact to maintain a connection with the other person.

How to Build New Relationships: The Anti-Networking Guide (Breadth)

Accumulating connections (what we call networking) won’t get you anywhere. Developing genuine relationships is the only way forward. To do so, connect with people whose values or hobbies align with yours, ask engaging questions, listen to understand the other person, and use follow-ups to keep in touch.

How to Build a Personal Board of Advisers: The Brain Trust (Breadth)

A brain trust is a group of people with different ideas who get together to improve the quality of a product. You can apply this concept to improve the quality of your personal and professional lives. The group should be unbiased, diverse, willing to provide unfiltered feedback, and interested in seeing you succeed.

How to Build Authority: The Public Speaking Guide (Breadth and Earned Status)

Public speaking is an important skill since it expands your relationship circles and builds expertise. To improve your public speaking, you need a series of strategies. Tell stories using a familiar structure that’s easy to follow, avoid memorizing your material, study the best public speakers in the world, imagine the worst-case scenario and confront it, invent a character, eliminate stress using breathing techniques, use humor to lighten up the tension, take slow steps, and use confident gestures.

How to Play the Right Games: The Status Tests (Earned Status)

When we rely on external validation to be happy, it will turn into an elusive goal we’ll never reach. There are two types of games in life: bought-status games and earned-status games. To determine which kind of game you’re playing, answer these questions:

Would I buy this thing if I could not show it to anyone or tell anyone about it? Bought status is a temporary improved social position we get for obtaining status symbols. Examples of status symbols include flashy watches, sports cars, or expensive sailboats.
Could the richest person in the world acquire this thing I want to buy tomorrow? Earned status, on the other hand, is respect, admiration, and trust. You can’t buy earned status. Examples include free time, loving relationships, mastery, wisdom, health, and a calm mind.

Chapter 16: Summary: Social Wealth

Social Wealth has three pillars: depth (meaningful bonds you have with a handful of people), breadth (connection with a bigger group of people), and earned status (the respect, admiration, and trust of the people you care about).

Part IV: Mental Wealth

Chapter 17: The Big Question

“What would your ten-year-old self say to you today?”

The main pillar of mental wealth is curiosity. We humans are naturally curious, and if we cultivate this trait, we’ll be happier and less anxious. Curiosity also increases your chances of finding the right partner, big ideas, hobbies, or job. The problem is that our natural predisposition to making new experiences declines with age. Nevertheless, we should reconnect with our inner ten-year-olds.

Chapter 18: A Tale as Old as Time

Across humanity, there has always been a pursuit of purpose, growth, and reflection. In Buddhism, this is known as dharma. As long as you choose it yourself, your dharma doesn’t have to be extraordinary. The Greeks had a term called arete that referred to the idea of improving ourselves. A similar concept is that of eudaemonia, a state of happiness you can only achieve by looking for growth, purpose, and authenticity. The Japanese call ikigai the reason for life, a combination of your passion, mission, profession, and vocation. The world doesn’t want us to be different or authentic, so in a way, we all fight against normalcy.

Chapter 19: The Three Pillars of Mental Wealth

The three pillars of Mental Wealth are purpose (your unique vision that leads to meaning), growth (the need for hunger and change), and space (creating stillness and solitude).

Chapter 20: The Mental Wealth Guide

Mental Hacks I Wish I Knew at Twenty-Two

Purpose doesn’t mean work. As long as your purpose is yours, it doesn’t have to be work-related.
Find an environment where you can thrive.
Understand that the best talker doesn’t always have the best ideas.
Focus on one creative project at a time.
Find your strengths and use them well.
To get better at something, work on it a bit every day.
Solitude is important.
Presentation isn’t as important as substance and critical thinking.
To learn something, teach it to someone else.
Spend time alone and without technology reading and writing.
Practice gratitude often.
Ignore the news that won’t be relevant in the future.
Turn pain into something creative.
Reread the books that changed your life.

How to Find Your Purpose: The Power of Ikigai (Purpose)

Your ikigai is your life purpose. You get it by overlapping three components: what you love, what you’re good at, and what the world needs.

How to Choose Your Life Pursuits: The Pursuit Map (Purpose)

Don’t follow your passion but your energy. When trying to determine what to do, use what the author calls pursuit mapping.

Create your map: this is a two-by-two matrix where the x-axis has the competency levels (from low to high) and the y-axis has the energy levels (from energy-draining to energy-creating).
Identify your zone: the author identifies three zones. Zone of Genius includes the pursuits where you’re most passionate and competent. Zone of Hobby is where you’re less competent. Zone of Danger are the pursuits that drain your energy, and you should avoid them.
Align your time: spend most of your time in the zone of genius and the rest of the time in your zone of hobby. Eliminate the time you spend in the zone of danger.

How to Learn Anything: The Feynman Technique (Growth)

American theoretical physicist Richard Feynman was self-taught in many disciplines. This let him convey difficult ideas in simple ways. The Feynman technique (this is the name given to his learning model) has four steps:

Set the stage: write everything you know about the topic you want to learn about. Research from broad to deep.
Teach: teach the topic to someone else. Use simple language to do so.
Assess and study: reflect on your performance and go back to step 1.
Organize, convey, and review: organize everything you’ve learned into a clear lecture or story.

How to Retain Everything: The Spaced-Repetition Method (Growth)

Spaced repetition is a technique where you consume information at increasing intervals until it becomes part of your long-term memory.

How to Think Differently: The Socratic Method (Growth and Space)

Socratic questioning (also known as the Socratic method) is a process where you ask and answer questions to expose assumptions. The process is the following:

Ask questions
Propose a hypothesis
Challenge the assumptions behind your original thinking
Evaluate the evidence that supports your thinking
Understand the consequences of mistakes
Evaluate alternatives
Zoom out

This is a time-consuming process, but you should only use it on high-stakes decisions that offer asymmetric rewards.

How to Unlock New Growth: The Think Day (Growth and Space)

Think week is a creative endeavor where you focus deeply on an activity without distractions and in a secluded location. The purpose is to find time to read, learn, journal, and think.

How to Create New Space, the Power Walk (Space)

To create more space in your life, walk. Walking leads to mental clarity, creativity, and recovery.

How to Build Clear Boundaries: The Personal Power-Down Ritual (Space)

Power-down rituals are a sequence of behaviors to signal the end of your day. This is a way to establish clear boundaries and enhance your creativity while working.

How to Improve Your Mental Health: The 1-1-1 Journaling Method (Space)

Most people don’t have a journaling habit because they think they don’t have time. Journaling for five minutes can improve your mental health. With this in mind, Bloom created the 1-1-1 method. In five minutes, write one win, one point of stress, and one point of gratitude.

Chapter 21: Summary: Mental Wealth

Mental Wealth has three pillars: purpose (your unique vision that creates meaning), growth (your desire for progress), and space (the creation of stillness).

Part IV: Physical Wealth

Chapter 22: The Big Question

“Will you be dancing at your eightieth birthday party?”

Physical wealth is important because it starts a mindset shift. This shows you that you’re in control of your life. The actions you take today set you up for future success. When you make decisions now, you shouldn’t make them based on immediate gratification. Physical Wealth is about movement, nutrition, and recovery.

Chapter 23: The Story of Our Lesser World

Leonardo da Vinci once wrote that “the ancients called man a lesser world.” He was fascinated with the human form and left a legacy that continues to this day. There’s something natural about Physical Wealth because we’re hunter-gatherers. We are supposed to be in constant motion because our survival depends on it. Maintaining a healthy lifestyle isn’t as confusing as we think. We need to move, eat whole, unprocessed foods, and sleep and recover.

Chapter 24: The Three Pillars of Physical Wealth

The three pillars of Physical Wealth are movement (cardio, resistance training, and flexibility), nutrition (eating whole, unprocessed foods), and recovery (sleeping well). For a more detailed guide on each of these pillars, check out this summary of Peter Attia’s Outlive, which Sahil Bloom mentions as an important resource to use on your journey to achieve Physical Wealth. Similarly, make sure you read this summary of Matthew Walker’s Why We Sleep, which is often called the definitive book on sleep.

Chapter 25: The Physical Wealth Guide

The Physical Wealth Thirty-Day Challenge (Movement, Nutrition, and Recovery)

Choose a challenge, track your progress, find an accountability partner, and move on to the next level.

How to Win the Day: A Schedule-Backed Morning Routine (Movement and Nutrition)

The first hour of your morning sets the tone for the rest of the day. With this in mind, here are five principles to have an effective morning routine:

Wake up at a consistent time every day
Drink enough water
Do some form of exercise
Get outside and walk
Do focused work

The Movement Plan: A Level 3 Training Plan that Works (Movement)

This plan involves three full-body strength workouts, two low-intensity aerobic workouts, and one high-intensity anaerobic workout. After that, you get a recovery day where you do light movements (such as walking).

The Common Sense Diet: Principles and Food (Nutrition)

This diet follows eight principles:

Eat well most of the time (single-increment, whole, unprocessed foods)
Stop eating before you’re full
Get enough protein
Avoid foods that make you feel bad
Drink enough water and limit alcohol
Eat fruits and vegetables at every meal
Find the right meal frequency for you
Don’t miss out on life due to your diet

How to Become a Pro Sleeper: Nine Rules for Sleep (Recovery)

Keep a regular schedule
Spend a few minutes viewing the sunlight every morning
Keep your sleep environment cool and dark
Don’t eat right before bed
Don’t drink too much before bed
Avoid caffeine in the afternoon
Limit alcohol consumption
Come up with your own wind-down routine
Avoid screens before bedtime

How to Promote Calm: Science-Backed Breathing Protocols (Recovery)

You cannot lead a healthy life if you have too little or too much stress. This is important because there is such a thing as an optimal level of stress. Ideally, you want to be in a state of optimal stress when you’re working and a state of low stress when you recover. Although we all suffer from high stress from time to time, when this turns into something chronic, it leads to problems.

The 4-7-8 method is what the author suggests to trigger a calm state and fall asleep more easily. This is how it works:

Breathe in for four seconds
Hold your breath for seven seconds
Exhale for eight seconds

Chapter 26: Summary: Physical Wealth

The three pillars of physical wealth are movement, nutrition, and recovery.

Part VI: Financial Wealth

Chapter 27: The Big Question

“What is your definition of enough?”

In the modern world, we’re constantly pursuing more. Hedonic adaptation is our biological predisposition to go back to a baseline after something positive has happened. Being content with enough isn’t the same as having a lack of ambition; it’s understanding that the worthiness of your life shouldn’t be determined by how much money you have. If you define happiness as having time, people, purpose, and health, you don’t need money to feel worthy. What we need, when it comes to money, is to come up with a definition of enough that’s unique to ourselves. Nobody can achieve true Financial Wealth if your expectations “grow faster than your assets,” as the author puts it. Defining what enough looks like to you is important because once you get there, you can prioritize time, relationships, purpose, growth, and health.

Chapter 28: The Financial Amusement Park

Money has been around for a long time, and we’ve always associated wealth with something physical. In modern times, financial wealth exists digitally. Many companies have created apps and services where using your money feels entertaining and addictive. Bloom compares those tools to an amusement park. Examples include cryptocurrencies, passive investments, and NFTs. To reach financial wealth, stay away from the “amusement park” and follow some boring fundamentals for as long as possible.

Chapter 29: The Three Pillars of Financial Wealth

Almost anyone can build a life of Financial Wealth, you just need to focus on its three pillars: income generation, expense management, and long-term investment. Between income generation and expense management, there is a gap. To build Financial Wealth, you need to use that gap since it’s a foundational asset. With this in mind, build growing income streams.

Long-term investments are about compounding the gap. Compound interest refers to the growing interest you receive from an investment. In other words, you earn non-linearly. For this to happen, you just need time. Index funds are the best way to invest, especially if you’re young.

Chapter 30: The Financial Wealth Guide

How to Define Your Enough Time: Finding Your Lagom

The Swedish word “lagom” can be translated to “Enough Life”, the point where you can live out your ideal days with the money you have. This shouldn’t be an abstract idea but something you’ve clearly defined. Determine where you want to live, who you want to live with, what you do on an average day, and what things you need.

Financial Wealth Hacks I Wish I Knew at Twenty-Two

Spend without restraint on what you love and cut costs on everything else.
Focus on what’s important: where you live, who you marry, and what profession you pursue.
Keep 6-12 months of emergency funds in cash.
Save and invest every month.
Never spend more than what you have.
Buy the best things you can afford and keep them as long as possible.
Be frugal with yourself but generous with others.
Investments or financial opportunities that are too good to be true don’t exist.
Index funds are the best investments.
Stay away from financial opportunities that have jargon in them.
Never sell stocks when the market drops.
Wait 30 days before buying non-essential items.
Being a conscious spender isn’t the same as being cheap.
Your finances should be simple.

Seven Pieces of Career Advice I Wish I Had Known When I Was Starting Out (Income Generation)

Create value, receive value.
To get the toughest things done, do them first thing in the morning.
Be early, look people in the eye, become trustworthy, and don’t gossip.
Work hard first and smart later.
Tell good stories.
Pursue opportunities.

Six Marketable Meta-Skills to Build for a High-Income Future (Income Generation)

The most valuable meta-skills (foundational marketable skills that let you build other skills) are sales, storytelling, design, writing, software engineering, and data science.

The Seven Basic Principles of Expense Management (Expense Management)

To build financial freedom, you need expense management. These are the seven principles you need to know.

Create a budget
Automate savings
Treat credit cards like cash
Create an emergency fund
Budget for experiences
Plan purchases ahead
Treat expectations that grow faster than assets as a liability

The Eight Best Investment Assets for Long-Term Wealth Creation

Nowadays, there are infinite investment opportunities, but few of them are worth it. Here are the best investment resources in order of importance:

Stocks
Bonds
Investment Property
Real Estate Investment Trusts (REITs)
Farmland
Small businesses and startups
Royalties
Your own products

The return-on-hassle spectrum is the idea of considering time and energy before investing in something. Certain investments generate a big percentage, but they demand time or traveling to a place, fixing something, or dealing with problems. Ideally, you want to invest in something that doesn’t require any time and energy on your part. That said, the higher the risk, the higher the reward.

The Single Greatest Investment in the World (Long-Term Investment)

Some investments you don’t think about because they are cheap considering the potential rewards. These include education, fitness, quality food, mental health, and sleep. The best investments you can make are in yourself.

Chapter 31: Summary: Financial Wealth

The three pillars of Financial Wealth are income generation, expense management, and long-term investment.

Conclusion: The Leap of Faith

To get the best rewards in life, we must take a leap of faith. The ideas from this book can be life-changing if you apply them. Doing so will be uncomfortable at times, but by facing them, you can change your life. The best thing you can get is the right people. Whenever you must make important decisions, do so with the five types of wealth in mind. The more difficult the decision, the more impact it’ll have on your life.