Your health, relationships, knowledge and free time are all important aspects of your overall wealth. Learn how to get the most out of all of them.
These days, people are increasingly interested in thinking about wealth in a holistic way, in a multi-dimensional way; after all, wealth is more than money. Your assets also include your health, knowledge, time and relationships. This view of wealth invites a comprehensive approach to wealth management beyond your finances.
Here are four ways to manage and optimize returns across your financial and non-financial assets:
1. Money and Investments
Making money is important, but so too is thoughtfully investing the excess as soon as practical, because this is where the real financial growth can happen. The earlier you invest your money, the earlier you can benefit from the power of compounding. Compounding is the money you earn (over time) on both your initial investment and the accumulated interest/returns. This is why contributing to your retirement plan as early and as frequently as possible is recommended.
You can put this into practice by enrolling in your employer’s pension plan and company match, all the while opting for automatic savings, so you don’t have to think about it. Additionally, contributing to a traditional retirement fund (such as an RRSP) can help you to build and optimize your financial wealth.
Of course, consulting with a financial advisor who can help you with these things would be optimal.
2. Health and quality of life
You can achieve significant long-term benefits when you diligently track, monitor and manage your health. In fact, you could track your health like you track your money: budget your calories like you budget your dollars.
Wearables and apps can help with that. An Apple Watch or Oura Ring, for example, can monitor your steps, sleep and heart rate, and the data is available to view via the corresponding app on your phone.
Let’s take this one step further (pun intended): good health enhances your productivity and decision-making capabilities, which directly impact your financial wealth. This correlation is well researched and documented.
3. Knowledge, status and influence
We’ve all heard that knowledge is power. Getting ahead in your career is often based on what you know, so continually learning all you can to benefit both your career and your financial well-being is paramount. The more you know, the more status and influence you have, too.
Many people embrace the “life-long learner” mindset, which is particularly important these days as so much change is under way.
Consistently expanding your knowledge enables you to stay relevant and valuable — for the benefit of yourself and others — both at work and in your community.
Further, sharing what you know with others through mentoring, volunteering and/or serving on company boards can also add to your status and influence.
4. Time, energy and experiences
Time and energy are finite resources, which is exactly why masterfully managing these assets is important. Consider outsourcing onerous tasks where possible, so that you have more time and energy to spend elsewhere. For example, if you find cleaning your home has a low return on investment for you, then you can hire someone to do it for you. The time and energy saved can then be allocated to other things.
Consider investing your time and energy in experiences that are valuable to you. Perhaps you enjoy hikes in nature or hosting fun dinners with family and friends. These experiences add to the richness of your life and also enhance the assets of health and relationships.
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