The Holistic Balance Sheet

I spend most of my days in conversations with people about things that matter deeply to them. Commonly, we will develop and work from their “balance sheet”. However, most of us initially think only in terms of a financial balance sheet – the one with financial assets on one side and liabilities on the other. It’s an important and helpful tool to be sure. But I work from a different balance sheet – I call it “The Holistic Balance Sheet”.

If I asked you to develop your own balance sheet, you’d start by thinking of the things you own. Your home, 401K balance, business interests and automobiles come to mind pretty quickly. You may or may not readily know the value of each of these. But you can fairly easily identify the key items. They are the ones that have the biggest price tags usually – the most valuable assets, right? Or are they?

I often ask people – once they’ve racked their brains trying to identify all the assets in their possession – if they’ve truly identified the most important things. “Is there anything more important than the things you have listed on the left side? Is there anything you wouldn’t trade for the things you have listed?” And usually there is. It may take a while, but they usually get it. They may respond, “My family, my friends, my faith, my education, my experiences, my health, my … you-fill-in-the-blank.”

These other newly-identified items seem to fall into two general categories: relationships and experiences. So I think of the left side of my holistic balance sheet this way – as having three sections: financial, relationships and experiences.

I ask others – and myself sometimes – “which section is least important?” Not everyone answers the same way. For most of us, they are all important. But most of us recognize that “money” isn’t the only thing that matters. Often, its value is far less than important relationships and experiences. On the right side, most of us think of what we “owe” – liabilities, debts, taxes due, etc – think of them as “have to’s”. These aren’t much fun for most of us – uninspiring at best; ominous, at worst.

In my holistic balance sheet, I define this section differently as well. The term I use is “contribution” – or “choose to’s”. There are financial aspects. I can’t deny the reality that taxes and debts exist. I can choose how I view these things and other important financial and non-financial “obligations” though.

To be sure, this is not the typical static, snapshot-in-time balance sheet from my old accounting texts. In fact, it is quite dynamic. Some financial purists would surely argue that I’m mixing balance sheet terms with income statement terms and throwing in some spiritual mumbo jumbo to boot. Yup! That’s why I call it a holistic balance sheet.

When I make a contribution to my financial assets, I expect a return or dividend. I may not always get one – or at least not the one I expect. I make a monthly mortgage payment – I choose to – for a whole slew of financial and non-financial reasons. I want to own my home. I can’t afford to buy it outright. I want a tax deduction. I want to lock in a specific payment amount. I don’t want a landlord telling me what I can and can’t do there. I want my children to have a sense of place. I love the neighborhood. There are plenty of other reasons as well. And the same can be said of my contributions to my portfolio, my 401K, the auto I drive, and the children’s education account. I can even argue that I expect a return from both contributions to charities (donations) and to my government (taxes). Again, I may not get exactly what I expect or want in these areas.

Likewise, I make right-side contributions that correspond to the left-side “asset” sections. Contributions to the “emotional bank account” in each of my human relationships help me better appreciate key people in my life. In turn, they better appreciate me. Quality time with our partners, spouses, children, and friends is a contribution. Being interested in what they are interested in is a contribution as well. And just listening – not to problem solve, not to judge – just to understand, pays huge dividends. This is true for families, work colleagues, faith communities – even for business or political adversaries.

I would also argue that we invest time, energy, and financial resources in experiences as well. I wouldn’t trade my experiences and the wisdom I’ve gained from them for anything. I’ve known business people who have made and lost fortunes. They tell me that they were just as “wealthy” while bankrupt as they were when they were flush with cash. The reason they say is because they have an even richer experience of how to rebuild the wealth the next time. I haven’t seen the peaks or the valleys that these folks have, but I have learned from the many good and not-so-good things that life has thrown at me. My education, formal and otherwise, is a treasure. But the knowledge, the education and the wisdom don’t just appear. They are earned by the investments I’ve made in them.

The dynamic piece in all this is that each contribution from the right side increases the value on the left. The currency may not be U.S. Dollars. It may be deepened friendships, magnified love, greater sense of community, or the remarkable learning that only comes from temporary failure. The value of the assets grows. We may not always notice it. We may in fact be totally oblivious to the growth. It grows just the same.

And it grows best when we contribute generously. The more I contribute to my 401K, the more it will grow in the long-run – despite temporary setbacks due to stock market fluctuations. The more time I spend with my son doing what he wants to do, the richer our relationship will be as we grow older. The more involved I choose to be in my community, the more I’ll appreciate it and enjoy the experiences.

What I find really fascinating is that reinvesting the dividends from one asset to another seems to cross-pollinate the others for an even greater measure of holistic wealth and health. I choose to contribute to a number of organizations and causes. It is a choice. And I choose to give of my time, my talents and my treasure. I am rewarded in a variety of ways. My experiences are richer to be sure. I have a tremendous network of generous and concerned friends. They continually offer to help me in both my business and community work. The result of this effort is much greater than the some of the parts – both individually and on a larger scale.

I return to this concept from time to time. Lately, it has been very much on my mind. A quick look around the world presents tragedy after tragedy. Economic uncertainty abounds. If I base my attitude on my retirement plan balance or my short-term income projections, I could choose to be depressed. But why would I look at only one aspect – the least important aspect – of my holistic balance sheet? I have a beautiful family, decent health and a community that nurtures my soul by reminding me that I’m part of something bigger than myself. I am blessed indeed. I suspect that most of us would have to admit the same.

Another key concept regarding the holistic balance sheet is the concept of “appreciation.” I learned a long time ago – and get to relearn occasionally –that to increase the value of “things”, we need to appreciate them. To “appreciate” literally means to “increase in value”. And the most important things to appreciate aren’t things at all – they are people (including ourselves), our experiences, our communities, our universe and Life itself. People with a genuine sense of gratitude are never poor – no matter what their bank account says.

A wise man once told me that it is virtually impossible to be depressed and thankful at the same time. I find it to be true for myself. Yet how often do I forget to notice how fortunate I am? How many times do I complain about minor inconveniences as though I was being deprived of basic human rights? And how seldom do I take time to express my gratitude for the blessings I enjoy?

A sure-fire way to be “richer” is to be appreciative. Practice gratitude. And do it regularly. If we want to feel “rich” on Thanksgiving Day, be thankful for that day. If we want to be and feel richly blessed every day, then be thankful every day. Try writing down at least one thing for which you are thankful each and every day. Actually write it down. It can be large (health, family, a home, a job) or small (a modest act of kindness, a tasty meal, a precious memory from the past, a sunset). Whatever it is, write it down. Think about it. Meditate on it. Offer a prayer for it. Appreciate it. That’s what makes it and everything else in our lives more valuable – appreciating them.

To grow the wealth in your world, share that appreciation with others. Have you ever written a thank you note? How did it make you feel? Have you ever received a genuine thank-you? How did that make you feel? It is one of the magic elements of the universe – expressed gratitude. The alchemists of the past searched for centuries without finding a substance to match it in power. Genuinely expressed gratitude costs little or nothing – yet it increases the value of the “thanker” and the “thankee”. It magnifies the value of the deed. It increases the likelihood of future good works. It builds a greater awareness of the richness of life itself.

Along with the other items on the right side of the holistic balance sheet, gratitude is part of the dynamic process of abundance. Contributions of energy, focus, time, talent and treasure on an intentional basis pay big dividends. We get healthier with exercise, more financially stable by investing wisely, have more interesting lives by trying new things and have a greater spiritual connection to others and to our Source with conscious living.

The left sides of our balance sheets abound with riches most of the world can’t even imagine. Some of us appear wealthy financially, yet are impoverished in our relationships. Some bask in untold richness of unique experiences that rest of us may never know – unless we ask. None of us has everything we might wish for – and that’s probably a good thing. Yet each of us has much for which to be thankful. And by continuing to invest and to reinvest, we can continue to grow our own balance sheets. By doing it together, perhaps we can build the holistic health and wealth of the world.