Breaking down capital


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Recently, I had the pleasure of discussing wealth building with a brilliant woman who is unapologetic about her beliefs and desire to rebuild the black community. After hours of discussion, stories, laughter and establishing an organic friendship, we agreed that in order to build our community we must educate about capital and black economics.

Not surprising, many aren’t aware how to define capital, let alone build it for generational wealth. This is where I come into the picture. As a wealth building expert, it is my responsibility to make sure I empower, educate, and elevate our community, one person at a time.

A quote from one of my favorite movies, Love Jones, said it best,  “Let me break this down, so that it can forever be capital wealthbroken.”

According to Investopedia, “Capital is different from money. Money is used simply to purchase goods and services for consumption. Capital is more durable and is used to generate wealth through investment. Examples of capital include automobiles, patents, software and brand names. All of these things are inputs that can be used to create wealth. Besides being used in production, capital can be rented out for a monthly or annual fee to create wealth.

Capital itself does not exist until it is produced. Then, to create wealth, capital must be combined with labor, the work of individuals who exchange their time and skills for money. When people invest in capital by foregoing current consumption, they can enjoy greater future prosperity.”

Again, capital is building wealth through investment. With that being said, you must focus on different ways to build your capital which includes, health, spirituality, friendship, education, business, personal finance, philanthropy, and knowledge. When you think about capital, you must leverage all aspects of your life, not solely focus on raising money. More importantly, in order to see results you must put in the work. No one is going to give you anything! Just as fast at you raise money to purchase goods and consumption, you can easily lose if it isn’t invested wisely. Invest! Invest! Invest! Invest in yourself, your family, your community and your goals. By generating capital in more than one facet of life, you are then able to build and secure generational wealth.

“Give a man a fish and you feed him for a day; teach a man to fish and you feed him for a lifetime.” ~ Maimonides


Bahiyah Shabazz is the CEO of  Shabazz Management Group, BROWN GIRLS DO INVE$T and Fabulous & Money Savvy. She has appeared and given financial advice on various media outlets, and is the author of Women Building Wealth.

About Bahiyah Shabazz 1003 Articles
Bahiyah Shabazz is one of the nation’s leading financial experts on the art of maximizing your growth. She's a wealth building expert, author, speaker, financial advocate, magazine and online columnist.

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