The power of reserves: why ultra-high net worth individuals need more than just financial security
Most people are running on fumes. Their reserve tanks are empty.
And I’m talking about all kinds of tanks:
Human: Only 12.2 percent of American adults are metabolically healthy; nearly one third feel lonely; and over 75 percent report experiencing at least one stress symptom in the last month.
Intellectual: The US ranks 36th in literacy in the world. I hear kids don’t read books anymore and get their information from short-form video on social media.
Financial: One-third of the US population has more credit card debt than emergency savings and the numbers worsened since 2023, according to a new Bankrate poll.
What is a reserve?
According to the Cambridge Dictionary, a reserve is a supply of something kept until it is needed.
My coaching school defines a reserve as an abundance of resources beyond what you immediately need. It provides a buffer between you and hardship, giving you options and peace of mind.
How does this apply to the ultra-high net worth?
Social media is full of wealthy individuals who seem to glorify the "cult of the Kardashians," vilify the classics, admonish stoicism and discipline, while glorifying hacks, extravagance, cosmetic procedures, and perfectionism. Their lives reflect a kind of hollowness.
I've known very wealthy people who might be rich "on paper" but live in poverty. Some ultra-wealthy entrepreneurs sleep in their offices and lack the time to properly nurture relationships with their children or partners. Their mindset is: "Deplete the world's resources and go to Mars."
Then, there are the wealthy people I know who may be well invested but have not fine-tuned their intellectual or physical skills. What would they do in another economic crisis like 1929? How would their egos take it? Would they jump?
Why do you need a reserve?
For ultra-high-net-worth individuals, having a reserve helps with decision-making, acting with intention, and moving into a place of strength rather than scarcity.
So, I called someone who knows a thing or two about finance and managing wealth for ultra-high-net-worth families. Max Haspel is president of Business Owner Services & Senior Wealth Advisor at Focus Partners Wealth. He co-authored Personal Financial Planning for Executives and Entrepreneurs and is a Forbes Best-In-State Wealth Advisor.
“I think a sufficient reserve aids in maximizing peace of mind, resilience, and also appropriate risk,” says Haspel.
“It can help people stay calmer in the short run and facilitate sticking with long-term investment strategies when the economy and markets experience their inevitable downturns. It can also allow one to be opportunistic—a strong hand when others are fearful or even panicking and markets are dislocated. At key times, a reserve allows for rational, logical decision-making using the prefrontal cortex, which keeps the fight-or-flight impulses of the amygdala at bay.”
Haspel’s description of financial reserves applies to intellectual and human reserves as well. The benefits are universal:
Fewer worries
Less fear
More effortless decision-making
Increased attractiveness to opportunities and people
Greater ease and comfort in emergencies
Peace of mind
Three critical areas of reserves
You can build a reserve in three critical areas:
Financial Reserves – Money that sustains your present and secures your future.
Many ultra-high-net-worth individuals aim to have at least six months to a couple of years' worth of living expenses in liquid reserves, according to Haspel. Financial reserves should be kept in stable, low-risk places like treasury bills, money market funds, or guaranteed interest options on permanent life insurance. Some also invest in gold or maintain access to undrawn credit lines.Intellectual Reserves – Information and wisdom that equip you to handle life's challenges.
Arthur Brooks recently spoke with Rich Roll on his podcast about using both science and the spiritual to find truth. He stressed that sometimes, we just can’t see everything, but that doesn’t mean it doesn’t exist.
My sensei said something similar in the dojo this week. He said it’s important to know how to use the body, but sometimes you have to just trust that your body knows what to do. Just because you cannot see proteins breaking down into amino acids doesn't mean the process is not happening. By the way, the Japanese word 先生 (sensei) originally meant "a person born before you." Actually, it’s more than birth order, it means someone who has walked the path before you. It’s about experience and wisdom.I love reading real paper books (though I now need glasses) as well as listening to books on Audible and podcasts such as the one mentioned above. Surrounding myself with senseis, mentors, and coaches keeps me learning, accountable and in alignment with my values.
Human Reserves – Your bandwidth and ability to act from a place of intentionality, not reactivity.
Use Magdalena’s The Grid System to assess your self-care in the following sub-categories:Time and space – At least two hours a day to yourself beyond sleep. Having room to think and be without constant pressure.
Energy – Enough vitality to carry you through the day. Do you have activities that energize you? Use the Designing Your Life Energy Engagement Worksheet or Good Time Journal to assess what gives you energy and what depletes it.
Love – Genuine support from people who matter to you and care about you. Check out this worksheet to see where you are.
Self-relationship – A strong, positive connection with yourself. Do you have a meditation practice? Do you journal?
The process of creating a reserve
Building a reserve isn't just about accumulation; it's about transformation. The process itself strengthens you. As you build reserves, watch how you feel.
Plug the holes – Identify and address areas where resources are leaking: integrity gaps, unmet needs, weak boundaries, and unnecessary tolerances.
Create systems – Both internal (mindset, habits) and external (accounts, budgets, schedules, routines). Consider how lottery winners often lose everything within a year—they lack the systems to sustain wealth.
Be intentional – Set aside time, money, and energy deliberately, rather than using everything as soon as it comes in.
Beware…
A reserve should not become an obsession. This doesn’t mean you should start hoarding. That’s not true abundance—it’s just another form of scarcity thinking. A healthy reserve is sustainable.
The goal isn’t just to survive—it’s to thrive. A reserve gives you the power to make choices, rather than being forced into desperation-driven decisions. Once you start building reserves in all areas of your life, you step into a world of freedom, security, and possibility.
