What if you could measure your life the same way a business measures success—through a balance sheet? This is the essence of the Balance Sheet of Life—assessing whether we’re truly accumulating wealth in the form of health, relationships, and personal growth, or just financial numbers on a screen. What if, instead of only tracking financial wealth, we tracked the value we’ve created in our health, relationships, and experiences?
In Sahil Bloom’s latest book, The 5 Types of Wealth, he identifies five categories of wealth:
- Time Wealth – Having control over your time and the freedom to spend it on what matters most to you.
- Social Wealth – Building deep, meaningful relationships and a strong social network.
- Mental Wealth – Engaging in continuous learning, personal growth, and maintaining a healthy mindset.
- Physical Wealth – Prioritizing health and vitality through proper nutrition, exercise, and self-care.
- Financial Wealth – Achieving financial independence and defining your version of “enough.”
Too often, we get caught up in one metric of success—money. But real wealth isn’t just about dollars in the bank. It’s about a balanced portfolio of life assets—things that add value, fulfillment, and meaning—while minimizing the liabilities that drain us. If you’ve ever felt like something in your life is off, maybe it’s time to take stock. What does your Life Balance Sheet look like?
The Balance Sheet of Life: Assets That Add Value
Just like in finance, assets are things that contribute positively to your overall well-being. These are the things that compound over time and lead to a fulfilling life:
- Health – Your body is the foundation of everything. Exercise, sleep, and nutrition are non-negotiable investments. Without health, everything else suffers.
- Relationships – Family, friends, and meaningful connections. Your social circle is your emotional support system and a key source of happiness.
- Experiences – Travel, adventures, and learning. The best memories often come from things you did, not things you bought.
- Purpose & Passion – Doing work you care about. If you don’t have a sense of purpose, work becomes a liability instead of an asset.
- Personal Growth – Reading, learning, and evolving. The best investment you can make is in yourself.
- Career – Accumulating skills and experience that are valuable to the world
- Home – Your home is where you spend the most time. It should be a place you feel safe, can relax and entertain guests. Of course it’s a financial asset, but its role in your life is grander than that.
- Time Well Spent – Being intentional about how you use your time. Every day is a deposit into your life’s balance sheet—make it count.
If you’re not investing in these assets, your life balance sheet may be out of sync.
A similar concept to this is a life score. GoodLiife defines two scores, both a ZenScore and a LiifeScore.
Life’s Liabilities: What Drains Your Life’s Value?
Just like in business, liabilities in life drag down your overall value. The more liabilities you carry, the harder it is to grow your assets.
- Toxic Relationships – Negative, unsupportive people who drain your energy.
- Poor Health Habits – Bad diet, lack of exercise, and neglecting your body.
- Financial Stress – Overspending, living beyond your means, and chasing materialism.
- Time Wasters – Endless scrolling, Netflix binges, and procrastination.
- Regret & Inaction – The cost of missed opportunities and failing to take risks.
Are you carrying too many liabilities? Maybe it’s time to write some of them off.
The Life Balance Formula: Assets vs. Liabilities
Sahil Bloom, in his book The 5 Types of Wealth, reminds us that “time is our most important asset, as you can never get it back.” He also highlights that “there are specific windows—much shorter than we might care to imagine or acknowledge—during which certain people and relationships occupy your life.” This perfectly aligns with the idea of a Life Balance Sheet. The choices we make with our time and relationships ultimately determine whether we are accumulating real wealth or just chasing the illusion of success. Your net worth in life is determined by subtracting liabilities from assets. If your liabilities outweigh your assets, you’re in the red. If your assets are strong, you’re thriving.
Ask yourself: If I were to create my own Life Balance Sheet today, how would it look?
Here’s how to rebalance:
- Increase life assets (invest in health, relationships, personal growth).
- Reduce life liabilities (eliminate toxic influences, cut out time wasters, and manage stress better).
How to Rebalance Your Life’s Balance Sheet
If your financial books were out of balance, you’d fix them. Your life should be no different. Here’s how:
- Audit Your Life Regularly – Take inventory of what’s adding value vs. what’s dragging you down.
- Make Small, Consistent Deposits – Invest daily in habits that build a better life.
- Write Off Your Liabilities – Let go of things that no longer serve you.
- Set Life Goals Like Financial Goals – Track progress, stay accountable, and course-correct when needed.
Success in life isn’t about luck—it’s about smart, intentional decisions.
Conclusion: The Balance Sheet of Life – What’s Your Life’s Net Worth?
If you had to add up your life’s assets and subtract your liabilities today, would you be in the green?
Think about it. Are you accumulating real wealth—the kind that brings fulfillment, happiness, and purpose? Or are you stuck in the cycle of chasing money while your life’s balance sheet is in the red?
Start investing in what truly matters. Balance your life’s books before it’s too late.
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