Americans have always been curious about the wealth of others, from The Millionaire Next Door to who’s on the Forbes 400 list each year. This preoccupation with a fictitious (and often estimated) net worth number reported by the media sets us up for unhealthy comparisons. It takes a strong sense of self not to feel less than those in the elusive 1%.
While we’ve been told by parents or grandparents that there is far more to life than financial riches, it’s rarely been clearly defined. My father may have come close when he frequently reminded my brother and me, “Something is only worth what another would pay for it.”
In my view, the standard net worth calculation is short-sighted, flawed, and narrow-minded. We compare ourselves to others monetarily while ignoring our most precious assets. We give credit for financial riches but no debits against failings.
I propose a modern version of personal net worth that’s more dynamic than a single financial metric. This formula highlights the priceless assets you likely already possess:
**(Wellness *10) + (Relationships *10) + (Knowledge 5) + (Finances 1) = True Wealth
Health
Good health is an early and often underappreciated share of wealth. We rarely value it until it’s compromised. Think of poor physical or mental health as the equivalent of a millionaire who overspends and ends up bankrupt.
During a late night at the Peninsula Hotel bar in Beverly Hills, one of my mentors, Ron, said, “What wealthy people really want is what they can’t have. They’re used to getting what they want.” Years later, I heard it firsthand from one: “I’d give up my net worth to be young and healthy again.” Youth and health are priceless.
What would you pay to be free of a debilitating disease? To have a functional, mobile body capable of adventure? These are the invisible assets that rarely make it into “wealth” calculations, but I’d assign them a value of $10 million to $100 million.
Relationships
Relationships are risky yet invaluable assets, requiring time, patience, and energy with no measurable return. A healthy, loving partnership can add years to your life—literally. Married men live longer than single men, and many successful men attribute their achievements to supportive spouses.
Parent-child relationships, friendships, and extended family connections provide joy that no financial milestone can replicate. Conversely, the pain of a toxic or broken relationship underscores their worth. Strong relationships might easily be valued between $10 million and $100 million.
Knowledge and Experiences
Knowledge is the ultimate building block. It shapes decisions about health, relationships, family, career, and finances. Paired with experience, it creates wisdom and resilience. By midlife, we can use accumulated knowledge to improve critical areas before it’s too late.
An educated and experienced person possesses “True Wealth” that can’t be taken away. I’d assign this block a value of $5 million to $50 million.
Finances
Reaching financial goals offers freedom and opportunities to change your family’s trajectory. Yet financial security can tempt over-ambition, often at the cost of health or relationships. Wealth without balance is a hollow victory.
Financial success receives only a 1x multiplier in the “True Worth” formula because of its diminishing returns. More money doesn’t always equal more satisfaction.
The Big Picture
If you’re healthy and have strong relationships, your “True Wealth” likely exceeds $100 million—even if your bank account doesn’t reflect it. Be grateful for where you’re strong, mindful of areas needing improvement, and aware of the time left to invest in what truly matters.
As Vince Vaughn proclaimed in Swingers, “You’re so money, you don’t even know it.” For further reading, check out Robin Sharma’s The Wealth Money Can’t Buy or Bill Perkins’ Die with Zero.
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Ron Speaker is a Wall Street veteran with over 38 years of professional experience in the markets. He began his career as a summer intern in 1986 at Janus Capital Group during the company’s meteoric rise in the mutual fund industry working for two finance legends, Tom Bailey and Michael McGoldrick.
During his 21-year career at Janus, he had a front row seat to the major market moving events from the stock market crash of 1987, the credit and Latin American debt crisis of the early 1990’s, the Long-Term Capital bond market blow up, the 1997 Asian crisis, the Dot-Com bubble, the tragedy of 9/11, the Iraq war of 2003, the 2010 flash crash, and the 2008 great financial and housing crisis.
After leaving Janus Ron started his own investment firm, Equus Private Wealth, a boutique fixed income firm that focused on municipal bonds for high-net-worth investors. Equus became known as the authority on Colorado municipal bonds and a specialist at non-rated, higher yielding issues. He and his team developed financial models and boots on the ground research methods that were unique for municipal bond investors. During this period of his career, he successfully navigated the markets during the 2010-2012 housing recession, the 2020 Covid crisis and the 2022 rise in interest rates that delivered the worst bond market performance in over 40 years.
With his vast working experience and knowledge passed down from his mentors, Ron is now focusing on sharing his experience and wisdom through “The Finance Camp” for teens beginning in the summer of 2023.
