Personal Finance Challenge #40: On Social Capital

The theme the past week or so has been on social capital…

Smiling More…

Giving & Receiving…

Working With a Coach…

These are all things that help you work toward building your social capital.

What is Social Capital? It is simply the value you retain by having the people in your social networks that you currently do.

For instance, let’s say you have a friend that is a mechanic. When you start to have car troubles your friend can help you. If he can’t fix it himself or at least give you a discount, then he can most definitely refer you to someone that will treat you right and not take advantage of you.

That is the value in social capital. It pays to know people.

Likewise, this isn’t all about taking. It is about giving too. How do you become someone’s friend? You probably give them something they value. If anything they simply value your time and company.

Maybe you did a favor for someone years ago and they have waited a long time for the opportunity to repay you for your kindness.

Helping people out is what makes the world go round. And one could easily argue we are all better off for it.

The final key is to start building social capital when you don’t need it. Hopefully you will enjoy the process itself and not necessarily expect something back in the future. But when times get tough for you, hopefully you will have people in your social circle who will give you a helping hand. And likewise I hope you have the ability to help them when they need help.

Give a little, Take a little…

Build Social Capital. It is one of the best things you can do.

This is our 40th challenge in The Personal Finance Challenge Series…

Originally posted 2011-11-19 00:51:14. Republished by Blog Post Promoter

Comments

  1. Interesting idea. You really know what you are talking about

  2. so good..thank’s

Trackbacks

  1. […] You Want To Be 37. Smiling Pays Dividends 38. Learn To Give & Receive 39. Find a Coach 40. On Social Capital 41. Buy Local, Think Barter 42. Pay It Forward 43. Write Down Your Favorite Quotes 44. The Dave […]