When we talk about wealth management at our events and in our publications, we are often referring only to financial wealth. But as a family office we would argue that wealth management is about far more than the monetary value of the assets we own. What’s more, we have identified all the areas of wealth in our lives which must be managed correctly, and all the ways we can suffer if they are not.
While this may sound like a dark and depressing concept, the potential for happiness is immense once we realize all the areas of our lives in which we are wealthy, and can increase our wealth in the areas we feel may be lacking.
Let’s identify financial wealth as only 15% of the wealth family office members can experience in life, with 85% being non-financial. So what are these non-financial forms of wealth, and what are the impacts they can have?
When the family office is working together to achieve a core mission which is completely aligned with their shared values, this leads to a kind of wealth identified as spiritual wealth. It can bond a family office and those working with them as they work towards a higher purpose.
When each individual within a family office is learning and growing, it strengthens the family office as a whole and produces new leaders who can take that family office into the future. Developing the human assets of a family office unit leads to what is known as human wealth.
Above all, family offices are families. When the bonds between family members are strong and there is mutual respect and love, the output of that family office is greater for it. This is what we call family wealth.
Having the systems in place to manage the family office effectively and to handle outside influences and changes both internal and external can be called structural wealth. When your family office has structural wealth, the business is more resilient and able to cope with change.
In a way, this is aligned with spiritual wealth. Having care and concern for one’s community, and a sense of compassion for society at large, is societal wealth. With societal wealth, family offices’ work and decision-making can have a huge positive impact on the world around them.