Rich Habits Podcast Episode 103: The 5 Types of Wealth with Sahil Bloom

Release Date: February 3, 2025

In Episode 103 of the Rich Habits Podcast, hosts Austin Hankwitz and Robert Krok engage in a profound conversation with Sahil Bloom, a renowned entrepreneur, investor, and author of the critically acclaimed book, The Five Types of Wealth. This episode delves deep into the multifaceted nature of wealth, exploring beyond mere financial success to encompass time, social, physical, and purposeful dimensions. Sahil Bloom shares his personal journey, insights on building a holistic life of wealth, and actionable advice for listeners aiming to transform their financial and personal landscapes.

1. Introduction and Guest Background

Austin Hankwitz opens the episode by celebrating the podcast's milestone achievements, highlighting its surge in popularity and listener base. He introduces Robert Krok, a seasoned entrepreneur, alongside Sahil Bloom, emphasizing Sahil's accomplishments and the imminent discussion on wealth's diverse aspects.

Sahil Bloom provides a personal narrative, recounting his transition from a Stanford baseball player to a Goldman Sachs professional, and eventually to a content creator and entrepreneur. He reflects on the hollowness of chasing financial milestones without addressing deeper personal fulfillment, which led him to redefine his approach to wealth.

[03:56] Sahil Bloom: "Money isn't nothing. It simply can't be the only thing."

2. The Five Types of Wealth

Sahil Bloom introduces the core concept of his book, outlining the Five Types of Wealth, each representing a pillar of a fulfilled life:

1. Time Wealth: The freedom to choose how and with whom to spend your time. Sahil relates this to Robert's ability to enjoy leisurely mornings and quality evenings.

   [06:21] Austin Hankwitz: "Wealth really comes from the Tuesday mornings where I wake up and I have the autonomy to have a slow morning..."

2. Social Wealth: Emphasizes the importance of relationships and community connections. It's about nurturing deep relationships and expanding one's social circles meaningfully.

3. Purpose Wealth: Centers on having a sense of purpose and engaging in activities that align with one's values and existential questions, such as spirituality or personal growth.

4. Physical Wealth: Focuses on health and vitality, advocating for daily actions that maintain and enhance physical well-being.

5. Financial Wealth: The traditional measure of net worth, underscored with the notion of defining "enough" to prevent perpetual dissatisfaction.

3. Mindset and Execution

A significant portion of the discussion revolves around the critical difference between information and action. Sahil emphasizes that accumulating knowledge without execution leads to stagnation.

[19:41] Sahil Bloom: "Dopamine from information gathering is a very dangerous drug."

He advises focusing on consistent action over perpetual learning, illustrating this with the concept of the “razor-thin gap between information and action” that distinguishes high performers.

Robert Krok adds to this by sharing personal anecdotes about prioritizing quality of life over excessive wealth accumulation, reinforcing the idea that habits must align with goals.

4. Overcoming Analysis Paralysis

The hosts and Sahil discuss the prevalent issue of analysis paralysis, where individuals get bogged down by overthinking decisions, hindering progress. Sahil offers strategies to combat this:

• Start Small: Break down daunting goals into manageable actions, akin to laying one brick at a time.

  [34:15] Sahil Bloom: "Just solve the first problem, then solve the next one..."

• Embrace Imperfection: Focus on taking imperfect action rather than waiting for perfect conditions.

• Consistency Over Perfection: Highlighting the power of small, consistent efforts that compound over time.

Austin Hankwitz echoes this sentiment with the mantra “do it tired”, advocating for persistence despite imperfect circumstances.

5. Mentorship and Building a Personal Board of Advisors

When discussing mentorship, Sahil introduces a modern approach by suggesting the formation of a personal board of advisors instead of relying on a single mentor. This collective of diverse experts provides varied perspectives and support, akin to Pixar's "brain trust" concept.

[28:30] Sahil Bloom: "Think about building a personal board of advisors... Pixar is sort of the origin of that idea of a brain trust."

Robert Krok reinforces the importance of surrounding oneself with individuals who influence growth and success.

6. Investment Philosophy and Portfolio Management

Sahil shares his barbell investment strategy, balancing high-risk early-stage ventures with stable, controllable businesses. He underscores adaptability as the key trait he seeks in founders, believing it to be the greatest predictor of success.

[44:38] Sahil Bloom: "The single greatest predictor of success in businesses is adaptability."

Robert relates this to his own investment approach, emphasizing tenacity and the ability to pivot as crucial for enduring success.

7. Mastering the Boring Stuff

In addressing foundational habits like automating savings and consistent investing, Sahil highlights the power of compounding and the significance of long-term, reliable actions over flashy, short-term gains.

[37:48] Sahil Bloom: "Compounding is just returns to the power of time..."

He recounts his grandfather's advice: "You'll achieve much more by being consistently reliable than by being occasionally extraordinary," emphasizing the enduring impact of dependable habits.

8. Mindset as the Ultimate Success Unlock

The final segment focuses on mindset as the cornerstone of success. Sahil advises:

• Rewriting Personal Narratives: Challenging and changing self-limiting beliefs that hinder growth.

  [39:43] Sahil Bloom: "The stories you tell yourself create your reality."

• Creating Micro Evidence: Building a track record of small successes to reinforce new, empowering self-perceptions.

• Consistency and Reliability: Demonstrating daily commitment to new habits to solidify identity transformations.

Robert Krok and Austin Hankwitz both emphasize the transformative power of mindset shifts in achieving lasting success and fulfillment.

9. Conclusion and Key Takeaways

The episode concludes with heartfelt appreciation for Sahil Bloom's insights, encouraging listeners to embrace a holistic approach to wealth that transcends financial metrics. The hosts reiterate the importance of consistent action, adaptable investment strategies, and a resilient mindset in building a rich, fulfilling life.

Key Takeaways:

• Wealth is Multi-Dimensional: True wealth encompasses time, social relationships, purpose, physical health, and financial stability.

• Action Over Analysis: Consistent, small actions compound over time to create substantial results.

• Adaptability and Tenacity: Essential traits for success in both personal endeavors and entrepreneurial ventures.

• Mindset Transformation: Rewriting self-limiting narratives and building a supportive advisory network are crucial for personal growth.

Notable Quotes:

• "Money isn't nothing. It simply can't be the only thing." – Sahil Bloom [03:56]

• "Dopamine from information gathering is a very dangerous drug." – Sahil Bloom [19:41]

• "You'll achieve much more by being consistently reliable than by being occasionally extraordinary." – Sahil Bloom [38:01]

• "The stories you tell yourself create your reality." – Sahil Bloom [39:43]

For those seeking to redefine their understanding of wealth and embark on a journey towards a more balanced, fulfilling life, Episode 103 of the Rich Habits Podcast offers invaluable wisdom and practical strategies.

Note: This summary excludes promotional content, advertisements, and non-essential sections to focus solely on the substantive discussions and insights shared during the episode.