When we think about wealth, we often think about financial capital. In times when financial capital is limited or diminished, we should be looking at other types of capital that we can attend to. The possibilities for wealth creation are abundant and one has to look at unconventional means of generating capital, beyond just economic capital and financial capital. During the downturn like we are experiencing now, it may be a good idea to invest in natural and manufactured capital, by upgrading the house, starting the garden or raising animals. Investing in human and intellectual capital can reap the benefits for many years to come. Free time we may be experiencing now can be utilized to increase experiential capital, by gaining knowledge and skills that take time to acquire, or social capital by reinforcing our social connections or creating new ones. The best part of all this is not just that you are creating wealth for yourself, but you are also creating opportunities for other people and improving the society as a whole.
- Typically, people think of capital in the form of financial assets like stocks, bonds, or cash flow.
- Human capital is often overlooked, yet is important for businesses as it’s people who purchase products and generate ideas.
- Businesses should engage with their community to increase their social capital and present their core values to the masses.
“The sum of your wealth cannot be determined by simply adding the numbers in your various accounts and investments. The worth of a person goes beyond net worth and cash flow.”