Few words in the english language have been abused as much as the word capital. The fact that it has to do with possession makes people wary and rather intimidated. Morphing the word into the concept of capitalism can steer fiery debates since people tend to address the concept politically. For some it is the epitome of freedom. For others the pinnacle of human suffering. Having in mind these cultural predispositions about the concept of capital, I will try to redefine it by using a friendly lingo.

In the conventional sense, capital refers to the financial value of assets. When we mention capital most people picture money and precious metals. If we like to venture into a more business like mindset then we can incorporate the idea of machinery and buildings. But is capital only confined by such a simplistic portrayal?

The financial aspect of Capital as it has been introduced through economics addresses only the tip of the iceberg. Every single human on this earth, whether dead poor or filthy rich, healthy or sick, can be broken down into three kinds of capital: Social, Financial and Intellectual. Our total worth is not only the balance in our bank account but our total impact upon society by utilizing all that makes us human.

Since all of us are aware of Financial Capital let us examine the nature of Social Capital. Assets have absolutely no value if there is no third party to define their worth. The magic happens only when other people are around. Individuals operate within societies that create and satisfy different sets of needs. We all form unique social circles that provide a constant flow of Social Capital thus allowing us to have access to the financial one. Sometimes Social Capital is beneficiary. Other times is damaging and can infect our entire network much like any financial investment. Social capital is also extremely susceptible to reputation and although it demands hard work and sacrifice, it can be easily demolished overnight. It is the most vulnerable from the three even though it can have the greatest overall impact.

Intellectual capital is the sum of knowledge and insights one carries in respect to their environment. Like a child, our intellect can be nourished or neglected. It has the power to transform social capital into a financial form through the use of innovation. Similar to the Social Capital, it is abundant in the environment but one needs to look carefully. Ideas can be rewarding or poisonous. Picture Intellectual Capital as a very powerful weapon that should only be used responsibly.

All three aspects of the capital can be transferred to each other. Each one generates force for the other two. They are all interconnected and can change states instantaneously. One cannot exist without the others.

For the sake of example let’s consider three old people burden with disease. One has a fat bank account but is rather deserted and not so sharp. The second has a strong social circle but also lucks wits and Financial Capital. The third one has only his intellect to rely upon. He is neither social or rich in the conventional form.

If an emergency occurs Social Capital can be as efficient as the financial and intellectual ones. A rich person can call a doctor or pay for the best care. The one utilizing Social Capital can call a friend or have someone checking on them from time to time. The intellectual one can come up with ways by using his dexterity to utilize services or inform people in case he is in danger.

Objectively all three forms of capital can take another form. A rich person pays for the social and intellectual capital of others. A social person utilizes the financial and intellectual capital as efficiently. An intellectual person can sway financial and social capital his way.

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Surely these three parts of capital do not operate in such an extreme fashion in our daily life as with our example. They function more like interconnected liquid tubes, flowing from one to the other with different percentages each time.

The take home message is to remember that Capital is an integral part of who we are and how others perceive us. There is no need to equivocate capital with negative connotations nor to be tempted to use alongside political arguments. We all utilize its function whether we like or not. It is tattooed in our very nature and it is partly responsible for what makes us human.