5 Types of Wealth by Sahil Bloom: Complete Book Review
What Money Twitter is talking about
I'm excited to share my review of Sahil Bloom's insightful book "5 Types of Wealth." This book fundamentally changed how I think about success and prosperity beyond just financial metrics.
Why should you care?
Sahil worked as a successful investor in Silicon Valley in 2022. He was on his way to his fortune of 20 million dollars.
but when a friend told him:
“You're only gonna meet your parents 15 more times.”
He was angry with his friend. But it did not take Sahil too long to realize the friend was right. He was losing his parents fast with his crushing schedule.
Something gotta change. So Sahil quit cold turkey and moved to New York, where his parents live.
His boss told him he might regret it.
Here what happened:
Sahil has embarked on an extraordinary journey. Over the past three years, he has built a thriving community of one million followers dedicated to the pursuit of optimal living, sharing insights on how to create a life of purpose, fulfillment, and joy.
He had a much better time building his internet empire while spending lots of time with his parents.
We often make mistakes in our lives using money as a scoreboard.
But most people, when they hit their mid-30s, realize this is an illusion and search for something else beyond the relentless money race.
What to know
Sahil proposed to look at our life in terms of 5 types of wealth.
Here is the catch:
The book might give people some performance anxiety. Now you have five scoreboards?
No. You don't need to pursue everything simultaneously. Sahil advocates for embracing life's natural seasons. During your twenties, you should prioritize building financial foundations and mental resilience. You can temporarily place other forms of wealth on the back burner while focusing intently on financial security and mental fitness. These early investments create the stability needed for cultivating broader forms of wealth later.
In your 30s, you want to focus on raising a family, so Time Wealth and Social Wealth are significant.
Finish the book, you will know what is important for each season of life.
My favorite part is the physical health. As someone struggling with health right now. I notice I will win the day regardless of what happens if I focus on my physical health in the morning.
The founders and the designers of the 2020s no longer just care about valuations. Without physical healths, you cannot finish the journey you started. Even the famous writer, Haruki Mukarami said this
To open the door you want, you must hone enough strength to open that door.
Don’t treat people like an emotional ATM
The most difficult part of being an adult is loneliness. If you want to feel rich, invest in your core relationships.
I love Sahil’s description of the emotional ATM. Don’t treat people like emotional ATM. You will destroy all good deeds if you only reach out and complain about your problems.
My personal life spiraled into a low point last year, and I eventually recognized how my negativity was pushing away the people I cared about. Taking responsibility, I made a conscious effort to reconnect by sending simple, positive messages to my friends—just a "good morning" text or a genuine "How are you doing?" These small gestures became the first steps in rebuilding the connections I had nearly lost.
It is easy to have good friends when you are rich and successful. But the best friends are the “darkest-hour friends”.
When someone is going through hell, saying, ‘I’m with you,” is the most powerful thing you can do. Be the ‘darkest-hour friend’ to those you love.
You can’t get rich alone
Being in the startup world this long, I see so many relationships falling apart, destroying great companies. In fact, founders dispute is the number 1 reason why a company might fall apart.
If a friend is complaining to you. Do only these three things. Ask them:
“Do you want to be helped, heard, or hugged?”
This is the strategy that is used by coaches, therapists and counsellors.
So often, a fight will start if you dismiss the other person’s feelings right away. Remember to use the 3H strategy to strengthen your relationships.
The Surfer Mentality
Adopting the surfer mentality is the key to your success and well-being - according to Sahil.
If you never surf. Here is how:
They enjoy this wave fully, knowing more waves will always come. They don't need to ride every wave that appears. They know patience and good positioning matter when waiting for the next wave. They understand that getting in the water is the only way to catch waves - you can't catch any by staying on the shore.
You have no ideas as a seasoned entrepreneur and a creative, I need to hear this. I have struggled with shiny object syndrome.
Drink your water in the morning
Sahil shared a bunch of tips to boost your wellbeing.
So many people fail in life because they got a broken body.
You do not need an expensive system. Drinking water is the simplest thing you can do for your physical wealth.
Without water, you are weak and lethargic. I know this one, but I always forgot to drink enough. By doing it in the morning, you do 1 simple task that can 10x your energy.
The power of a high-leverage system
What do Lionel Messi and Warren Buffet have in common? They all use high-leverage power systems.
“They identify and focus their energy on the actions and decisions likely to generate one hundred units of output for their one unit of input.”
It took me a long time to learn this trick. Because, at the beginning of my career, I said yes to everything. This led to frequent burnouts and sometimes unsatisfying outcomes.
Now, in my 30s, I realize that my leverage system is my public writing, and I focus solely on that.
Here is the caveat. It takes you a thousand times in the same scenarios to recognize your leveraging power. It also takes space and reflection to coordinate the right move.
So, ask yourself:
What did you do last year that produced asymmetric returns?
How to get rich in the modern amusement park?
To buid wealth, you only need to focus on three things.
The Three Pillars of Wealth:
Income generation: Create stable, growing income through primary employment, secondary employment, and passive streams
Expense management: Manage expenses so that they are reliably below your income level and grow at a slower rate
Long-term investment: Invest the difference between your income and expenses in long-term, efficient, low-cost assets that compound effectively.”
The book also warned you about how the modern financial landscape looks like an amusement park.
Fintech companies and banks capitalize on your desire to have fun and instant gratification.
You must curb your desire and greed to achieve long-term wealth.
Here is what the book might not teach you
If you have read a ton of self-help books from Tim Ferris, Psychology of Money, Grit in your 20s.
Then the book looks too familiar. Even Sahil admitted that he was standing on the shoulders of giants, borrowing ideas from people who inspired him.
I think it is still a great buy because you can flip through the book and learn a summary of everything you need to have a great life.
I am grateful for all the mental models that Sahil taught me:
The Surfer Mentality, the 3Hs of Healthy Social Interactions and many more.
You can pick up the book here.
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