Wealth Is Like Rocket Fuel….Where Will It Take You?
Research shows that families that succeed over time—at growing and preserving family assets and family connections—embrace a holistic definition of wealth. For these families, financial capital interfaces with social, intellectual, human, spiritual, and legacy capital—the “five capitals,” as defined by family wealth and governance expert James Hughes. Hughes’ model of the five capitals, with its broad definition of wealth, is a foundational model for your cognitive toolkit.
The successful multi-generational family is dedicated to empowering future generations to thrive, embracing fully engaged lives, equipped with the tools to realize their fullest potential and nurture their well-being. With a broad integrative mindset and a shared purpose, flourishing families embark on a lifelong journey of fostering a holistic learning family.
In crafting a holistic learning family model, our aim was to develop a tool that assists family members according to their capacities, passions, and stages of life. We like to quote one of our clients who told us, “Wealth is like rocket fuel, but where will it take you?” Indeed, at any age or stage of life, financial capital can help build well-being and self-esteem or magnify ill-being and the potential for feeling lost.
We’ve observed that families that over-identify with the money itself are most likely to fall into a black hole over it. Too much focus on the money can undermine personal well-being and development. It can result in anxiety, depression, entitlement, lack of motivation, and narcissism. These behaviors can result in languishing rather than flourishing—of family members and the family itself.