How Many Kinds of Capital Do You Invest in?
Did you know there are 8 forms of Capital?
At least according to Peak Prosperity’s Adam Taggart & Chris Martenson PhD.
A bunch of people in my social network have been following these guys. I have yet to really dig into them much myself but this summary from their book Prosper!: How to Prepare for the Future and Create a World Worth Inheriting, I found really intriguing.
I think a lot of people can get behind the part of their book title that speaks to a “world worth inheriting”. That paints a inspiring picture for me.
Perhaps you have only ever thought of one form of Capital: Cold hard cash or at least funds.
Kinda sorta me too.
So, let’s explore this a bit together.
Financial Capital - Money and understanding what it is and what debt is
Living Capital - Among other things, growing your own food. Intriguing, right?
Material Capital - Houses, cars, roads, art, etc.
Knowledge Capital - Just what it is…. No one can take your knowledge from you. It doesn’t depreciate.
Emotional Capital - One of the most important forms of capitals there is. Too much stress and depression in life today.
Social Capital - One thing with social distancing is we missed our friends! The physical and emotional get togethers. It was nice doing virtual happy hour but not the same as in person.
Time Capital - A lot of people say this is their most important resource: time. Once spent you cannot get it back. We all have the same amount everyday, it's how you spend the time you have that matters.
Cultural Capital - The space we live in, aspects of the life shared by the people around us.
Which of these forms of capital resonate with you the most?
Have you been neglecting some forms of capital and becoming overly focused on others in your life? Definitely guilt of this in my life!
*Full disclosure - this content was inspired from an email I received from a friend and fellow real estate investor who lives in Belize.