Wealth is NOT always about money. Know why defining your “personal wealth” is crucial in your career strategy! [Tuesdays: Return Driven Strategy]
Miles Everson’s Business Builder Daily speaks to the heart of what great marketers, business leaders, and other professionals need to succeed in advertising, communications, managing their investments, career strategy, and more.
A Note from Miles Everson:
Return Driven Strategy (RDS).
As explained by Professor Joel Litman and Dr. Mark L. Frigo in the book, “Driven,” RDS is a pyramid-shaped framework that has 11 tenets and 3 foundations. When applied properly to your business strategy, this framework can help you achieve true wealth and value creation.
One of the things I personally like about RDS is it’s applicable to one’s career. Just apply its tenets and foundations to the microlevel and you have Career Driven Strategy (CDS).
Today, let’s talk about one of the basic principles in CDS.
Continue reading to know why having a clear definition of your “personal wealth” is essential in your overall career strategy.
CEO, MBO Partners
Chairman of the Advisory Board, The I Institute
Return Driven Strategy
—the abundance of valuable material possessions or resources (definition from the Merriam-Webster Dictionary).
According to an article from Investopedia.com, wealth consists of all the resources under your control. In a purely material or financial sense, net worth is the most common expression of wealth.
Did you know the term can be expressed in a variety of ways and not just through one’s financial status?
Different people define wealth differently. For some, it’s in the form of assets or material possessions, while for others, it’s in the form of families, friends, relationships, good health, etc.
Photo from AD Financial
The Different Types of Wealth
To think wealth is restricted to just money is a narrow point of view of what it means to be truly wealthy. As Edmund Burke, the former British Paymaster of the Forces in the late 1700s, said:
“If we command our wealth, we shall be rich and free. If our wealth commands us, we are poor indeed.”
This means true wealth does not only consist of money or any other material possessions. It also consists of various aspects of our lives such as health, relationships, and time.
There are 4 different types of wealth:
- Financial Wealth
This type is what we naturally think about when we hear the term, “wealth.”
What does this truly mean, though?
Financial wealth pertains to achieving financial freedom, which is the status of having enough income to pay for one’s living expenses without having to be employed or dependent on others. This means complete freedom from financial worries that sometimes cause stress and anxiety.
Additionally, financial wealth consists of understanding concepts such as making money, saving money, investing, and reinvesting.
In other words, financial wealth is not just about money per se. It’s also about knowing what you need to do to become more financially savvy and understanding your behavior towards money.
- Social Wealth
This type is one of the most underrated types of wealth because not everyone typically thinks of status as a form of wealth.
Sure, some people understand that their position in society has value, but they sometimes fail to make the connection that it’s also actually part of their assets.
Simply said, social wealth largely comes down to how you interact with others and the world in general. It mainly deals with the kind of character you create and how others interact with and perceive this character.
- Time Wealth
This type is defined as having the freedom to spend time the way you want, where you want, and with whoever you want.
Allow us to explain further…
Many people crave “time.” However, this is something that feels rare for others because they spend a lot of their time dedicating themselves to simply earning money and building their statuses. In the end, they miss out on the whole point of living a truly happy and meaningful life.
To achieve time wealth, you have to understand that time is finite. It is something you cannot get back once lost.
You might have encountered the statement that some people are “cash-rich and time-poor.” This is not the position you’d want to be in if you truly want to be wealthy.
- Physical Wealth
Professor Joel Litman, Chairman and CEO of Valens Research and Chief Investment Strategist of Altimetry Financial Research, is a strong proponent of the saying, “true wealth is health.” He often delivers coaching comments to his workforce about taking care of their overall well-being, getting enough sleep, and more.
Why is health important?
It’s because it’s the glue that holds all the other types of wealth and life together. Without good health, you won’t be able to achieve financial wealth, social wealth, and time wealth—at least not in the long term.
By having the right mindset, you can enhance your health. Implementing positive changes to your diet, sleep, and activities can make a good impact. What else?
Combining that with understanding your body and mind, and surrounding yourself with the right people can be a real game changer for your overall well-being.
What does “personal wealth” mean to you?
According to Professor Litman and Dr. Mark L. Frigo, personal wealth can include many facets, depending on the person you’re asking. This can be in the form of:
- Financial wealth
- Who you work with
- Where you live
- The ability to learn and grow
- The ability to make a difference in the world
Why is defining “personal wealth” important?
It’s because to be truly wealthy, you have to be wary not to get lured into things that are only full of money and status, and will rob you of your freedom and health.
Think about this: What good is it if you have all the money and status in the world yet you don’t have the time to enjoy, or the physical well-being to feel good during the entire process of generating wealth?
Besides, if you don’t define your “personal wealth” and understand it, you’ll lack the compass that will help you make good decisions about your personal life and career choices.
That’s why it’s critical that you understand and pursue what is meaningful and wise in your journey in life.
We hope you find today’s topic helpful and insightful!
Always remember that you have the power to achieve true wealth. You just have to take the first step of defining what wealth means to you and achieving the right balance in your life.
Have a great day ahead!
(This article is from The Business Builder Daily, a newsletter by The I Institute in collaboration with MBO Partners.)
About The Dynamic Marketing Communiqué’s
“Tuesdays: Return Driven Strategy”
In the book, “Driven,” authors Professor Joel Litman and Dr. Mark L. Frigo said that the goal of every long-term successful business strategy should incorporate the combined necessity of “making the world a better place” and “getting wealthy.”
That is why they created Return Driven Strategy and Career Driven Strategy―frameworks that were built to help leaders and professionals plan and evaluate businesses so they can also help others achieve their organizational goals and career goals.
The frameworks describe the plans and actions that drive returns for anyone in an organization such as independent contractors, marketers, brand managers, communicators, and other people in any field. These actions lead to the creation of wealth and value for customers, employees, shareholders, and the society.
Every Tuesday, we’ll highlight case studies, business strategies, tips, and insights related to Return Driven Strategy and Career Driven Strategy.
In planning, building, or managing brands and businesses, these strategies, case studies, and guidelines will help you choose what specific actions to take and when to take them.
Hope you found this week’s insights interesting and helpful.
Stay tuned for next Tuesday’s “Return Driven Strategy!”
Head of Marketing
Valens Dynamic Marketing Capabilities
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