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The Harvard Master’s Secret: The One Thing You Need to Make Your Wealth-Building Efforts Count

If you're earning a high income but still feel unfulfilled, then read on for some advice.

3 September, 2024

Manisha Thakor, who holds an MBA from Harvard Business School and is the author of MoneyZen: The Secret to Finding Your Enough, shared with CNBC that “what bores the soul is when you get caught up in the vortex of money, work, success, and accomplishments, and you never have enough of them.”

Manisha also spent much of her time working in the financial services industry, but the result she got was a detriment to her physical and mental health, as well as her relationships with those around her. At that time, Manisha always believed in the formula: Self-worth = Net worth.

Ms. Manisha Thakor

“For many years, I believed that was the right formula. Isn’t it true that companies and businesses rely on after-tax profits or total after-tax revenue to measure their performance or growth rate? I thought in that direction and forgot the fact that I was just an ordinary person, not an object like a company or business. Since money is used to measure a company’s activity and growth, people can easily and inadvertently use a similar line of thinking when evaluating their success and happiness”, Manisha said.

Previously, Manisha was financially affluent but emotionally “bankrupt.” She didn’t have to worry about money, but she missed her friends’ birthday parties. She got divorced because she “had a husband who was never present and always focused on work.” If so, all her efforts to get rich were meaningless. Finally, Manisha realized that the formula was completely toxic.

After realizing her mistake, Manisha found a more correct formula: Financial Health + Emotional Wealth = Stable Wealthy State.

“I realized that if I didn’t have abundance in my soul, or in other words, positive emotions like happiness, enthusiasm, and passion,… Then no matter how much money I made or achieved in my studies and career, I couldn’t feel myself growing and thriving”, Manisha explained.

Manisha says that financial health is the ability to use money to meet one’s needs, such as paying rent, buying things, saving for retirement, etc. These are all very important things, but even if you can do them, you won’t feel satisfied without emotional wealth. For Manisha, emotional wealth means lingering and exploring all the little moments and experiences that bring her joy in her daily life.

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How to Build Emotional Wealth?

According to Manisha, to build emotional wealth, ask yourself what you would start or stop doing if you had abundant finances but limited time. For example, what would you do if you had the money but only one month left to live? Answering this question will help you find the things that bring you emotional wealth.

To find your definition of emotional wealth, ask yourself questions like: “When was I happiest in my life?” or “What creative activities have I done that brought me joy?”

Then, Manisha advises you to start doing the things on the list of answers you’ve just found. She also asserts that this list may change depending on your age and life stage.

Ms. Manisha shared: “There are many things that can bring you emotional wealth for free, such as connecting with those around you, reading books, immersing yourself in nature, or being with loved ones.”

Frequently asked questions

The article emphasizes the importance of having a wealth-building mindset and taking consistent action towards your financial goals. The ‘one thing’ that separates the successful from the unsuccessful is their ability to make their money work for them through investing and taking calculated risks.

A wealth-building mindset shifts your focus from simply earning an income to actively growing your net worth. It involves cultivating financial literacy, setting clear goals, and adopting a long-term perspective. This mindset empowers you to make informed decisions about your money and take advantage of opportunities to build wealth over time.

Investing is a key component of making your money work for you. It involves allocating your capital into assets that have the potential to generate returns over time, such as stocks, bonds, real estate, or business ventures. By investing wisely and diversifying your portfolio, you can grow your wealth and create passive income streams.

Calculated risks are informed decisions that involve a certain level of risk but are based on careful consideration and analysis. In the context of wealth-building, this could mean investing in growth opportunities, starting a business, or making strategic financial moves. By assessing the potential risks and rewards, you can make informed choices that align with your goals and tolerance for risk.

Education is a crucial step. Seek out resources, books, and courses that can enhance your financial knowledge. Surround yourself with like-minded individuals who share a similar mindset and can offer support and insights. Additionally, consider seeking mentorship from successful individuals who have achieved financial success and can guide you on your journey.