Dimensions of Wealth: Stewarding Social Wealth
By Thomas Twombly

Last month we touched on the notion that there are other meaningful dimensions to wealth besides the current market value of all that you own. But how do we define those dimensions? 

Just as there are philosophies and systems to manage the material side of your net worth statement, is it possible to have a philosophy and process for purposefully building, enjoying, and stewarding the less visible dimensions of your wealth?

 And more importantly, shouldn’t they be interconnected?

To sketch out one of the less-obvious dimensions of wealth, I’d like to recount a personal anecdote. A few years ago, as my son Gray was beginning his sophomore year in high school – the time when grades really begin to matter in the college application process – we were having a conversation about the importance of diligence and hard work. I, of course, was trying to emphasize the value of his attention to that part of his life. He, naturally, was trying to get me to lighten up and relax. “Da,” he said only half jokingly, “there’s more than one kind of intelligence. I’m focused on social intelligence.”

That comment has stuck with me. While I admit that it irked me at the time (it was designed to), I also admired the validity of his point. The fact is that Gray has a large circle of influence for one so young. His friends are impressive – every single one I’ve met is intelligent and fun to talk to. He readily puts himself into new groups and unfamiliar situations. Teachers and adult co-workers regularly comment about his disarming style and easy conversational skills, and he’s proven himself to be incredibly resourceful at meeting and engaging people in all walks of life. He expects to succeed when he sets out to make a new friend, talk his way into a new job opportunity, or cajole a mechanic into helping him work on his 1964 Volvo for a reduced rate. He’s courageous about risking disappointment or rejection to build those personal connections. These are some of the building blocks of social wealth, and even if his grades are less than perfect, they give me optimism for his future.

Social wealth is much more difficult to quantify than material wealth, but think of all the connections you have – your closest friends, your colleagues, your acquaintances, your professional contacts, the members of your club, neighborhood, social networks, or church. Think about your reputation, and your ability to build trust and have influence with these people. How important are these connections and abilities to your sense of well-being and security? Think about the people to whom you could turn, and who would readily respond, if you needed help. Think of the people for whom you would instantly put aside whatever you were doing if they needed your help. When you do so, doesn’t it give you a sense of fulfillment and belonging that goes beyond what’s reflected on your balance sheet?

I hear constantly from people that this is a critical part of their overall wealth. It’s not surprising, therefore, that social scientists have found that people with a large number of personal connections tend to experience greater levels of happiness and fulfillment. It’s also worth noting that recent studies of disaster survivors – from Hurricane Katrina to the Japan tsunami – have shown that those with the most robust social networks fared best in the recovery process. Clearly, social wealth is critical to survival and prosperity.

Each of us as an individual, a family, or group possesses a certain measure of social wealth. Each of us also has the ability to build upon and shepherd that wealth in a purposeful manner – but it requires thought, reflection, and action.  People with high levels of social wealth generally don’t get there accidentally, and they certainly don’t stay there accidentally. They make intentional investments – of time, attention, talent, and often money - into the people and social organizations that surround them. They’re also purposeful about surrounding themselves with people and organizations who value their trust, respect, and input.

It’s possible to build great social wealth without ever accumulating significant material possessions. Mother Teresa, The Dalai Lama, or Gandhi come to mind as a few of the significant influencers whose wealth and investments have been personal and spiritual as opposed to financial. It’s also possible to transform massive financial wealth into great and lasting social wealth – such as Andrew Carnegie, George Eastman, John D. Rockefeller, and other famous philanthropists whose gifts redefined their legacies, and continue to influence our culture to this day. 

For most of us mortals, though, success is a matter of balance. We must steward our financial resources well in order to sustain ourselves, or to invest in our children’s or grandchildren’s future. We must shepherd our personal and social resources well for the same purpose. We have to be conscious of the personal, social and financial legacy we wish to leave behind – and invest accordingly. Most importantly, we must integrate the management of these dimensions of wealth into one overarching plan.

How can we build wealth if we haven’t defined the totality of what it means to us? How can we know when or how much to invest in a financial or material asset unless we have a clear picture of what we’re trying to accomplish – and how that investment will help get us there? How can we make conscious choices about what to spend and what to save, what to give and what to keep, what to indulge in or what to sacrifice for, unless we’ve explored the full range of the dimensions we call wealth?

Successful individuals and families engage in these questions regularly. They also look for discerning advisors who understand them, and can help them align their financial wealth-management activities with the softer, but equally important, activities of social and personal wealth-management.

Next month: Defining Personal Wealth