Knowing and Growing Your 8 Forms of Capital

This blog post shares a bit about me and reviews an exceptionally useful framework for achieving prosperity.

When I was in my 20s, a friend introduced me to electronic music. Critics might say, “Some friend!” But I loved it. The culture around the music was captured by the acronym PLUR—Peace, Love, Unity, and Respect. This dynamic was real and attractive in the early 2000s.

Now, at 40, electronic music is a smaller part of my life. My focus has shifted to being a dad, studying financial markets, coaching clients on wealth management, developing important relationships, and caring for my physical health. Despite the changes, I still strive to center my life on Peace, Love, Unity, and Respect.

The Impact of Social Media

I’m sharing this context because I just concluded a 20-minute session on Twitter, part of my firm’s marketing strategy. This session left me with an increased heart rate and a fear-based disposition, thanks to engagement algorithms. Luckily, I ejected just in time. My hope is that our society will embrace Peace, Love, Unity, and Respect.

The 8 Forms of Capital 

To channel the emotional energy from my Twitter session productively, I turn to the 8 Forms of Capital, a framework developed by Dr. Chris Martenson and Adam Taggart. The purpose of this framework is to expand our understanding of wealth, build resilience, and ultimately achieve prosperity. Let’s review:

    Financial Capital: Money and investments.

    Social Capital: Relationships and networks.

    Material Capital: Physical objects and resources.

    Living Capital: Natural resources and ecosystems.

    Emotional Capital: Emotional resilience and well-being.

    Knowledge Capital: Education and skills.

    Cultural Capital: Cultural knowledge and practices.

    Time Capital: Time and how we use it.

Personal Insights

 When I left my advisor role at a large brokerage house two years ago, I changed the ratios in my life. Instead of working 60-65 hours per week, I invested time in exercise, exchanging Financial Capital for Time and Living Capital. This decision made me more resilient. My standard of living (consumption) declined, but my quality of life improved.

 Another change was the freedom to work with clients who appreciate my macroeconomic framework and investment style. Now, I serve fewer clients, but our relationships are deeper, and our time together is more productive. These clients are integral to my real-life social network, growing my Social Capital significantly.

Your Turn

Which of the 8 Forms of Capital is most abundant and most deficient in your life?

 Thank you for reading this post. Please share any feedback with me.

As always, in navigating our hyper-complex system, we face many risks—political, financial, and more. We need strategies to respond to these changing conditions, increase our resilience, and improve our chances of achieving prosperity. This is the service provided by CRBSS.

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