💰 Capital

Understand the role of capital in investing and wealth building.

Introduction

Capital is the foundation of investing. It represents the resources you use to generate returns, whether money, assets, or skills.

1. Financial Capital

  • Definition: Money available for investment.
  • Examples: Cash, savings, investment accounts.
  • Role: Fuels growth by being deployed into vehicles like stocks, bonds, or funds.

2. Human Capital

  • Definition: Skills, knowledge, and experience that create value.
  • Examples: Education, expertise, professional networks.
  • Role: Enhances earning potential and supports financial decision‑making.

3. Social Capital

  • Definition: Relationships and trust that enable collaboration.
  • Examples: Business partnerships, community networks.
  • Role: Opens opportunities and reduces risk through shared knowledge.

Conclusion

Capital is more than money — it’s the combination of financial, human, and social resources that drive long‑term success.
Understanding capital completes your foundation in investing basics.