The Four Forms of Capital

Some of you may be familiar with these forms of wealth as having been broken down into eight categories. Truthfully, people have found those hard to remember—heck, even I have to strain sometimes to pull numbers 7 and 8 out of my brain. So, I’ve simplified them into four forms of capital:

Home includes everything in your home, all the items in the pantry and your basement and/or garage. It includes how well insulated it is, and how many redundant means of heating and cooling you have installed and operating.

Health includes the state of health of your body, and your emotional health and spiritual depth.

Wealth is your money, of course, but also your knowledge and your time. If you have financial freedom (where passive income supports your lifestyle) and you have time to spare for your passions, and your skills allow you to make the most out of any situation and life, then you have real wealth.

Community is your social capital and the state of the culture in which you live. I don’t mean the culture of “France” or “the United States” but your local culture. For example, New Orleans has a very different cultural capital depth than Concord, New Hampshire. Your social capital is not just how many people you know, but how well you know them.

Martenson, Chris. The Crash Course: An Honest Approach to Facing the Future of Our Economy, Energy, and Environment (p. 271). Wiley. Kindle Edition.

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