Moving capital with good judgment that it will multiply
Finance is the first aspect because without capital, nothing moves. Capital, in all its forms, measures market realities that successful leaders rely on to steer their services into better waters.
Accessing the Five Types of Capital
Capital is not simply money, but also trust, relationships and quid pro quo. Skill in finance is the skill of building trust. The stock market runs solely on the faith investors have in a public company’s ability to make money. In law, trust is a literal arrangement in which one manages property for the benefit of another. In community organizing, an organizer builds trust between community stakeholders to achieve a consensual aim. People turn to experts to explain complex ideas simply to them so that they can use the knowledge. All of these examples are moving capital—trust—from one person to another, causing the capital to multiply and make both parties a bit wealthier.
Connecting Incomes to Capital
Below are actions, ownerships and investments a leader does or accepts to promote growth and wealth.
|Earned Income||Passive Income||Portfolio Income|
|Social||Give time. Accept service.||Organize meeting. Network.||Endorsement, advise.|
|Human||Coach, teach. Learn, practice.||Own teaching materials. Pick method.||Gain recommendations, license name|
|Financial||Work hourly. Employ.||Distribute service or product||Own stock.|
|Physical||Maintain property.||Rent out land. Lease land.||Improve land.|
|Environmental||Manipulate land.||Own land.||Own manipulation methods.|
- Passive Income is Not an Escape (stevepavlina.com)