You’ve heard the story a hundred times.
“Build up your financial capital,” they say.
“Invest early, save hard, and you’ll be set for life.”
Sounds reasonable, right?
Except… it’s not the whole truth.
In fact, it’s a narrative that conveniently leaves out one crucial element: you. Your skills. Your know-how. Your motivation. Your network. All the things that make up your Human Capital.
And here’s the kicker—they don’t talk about it because it doesn’t make them money.
đź’¸ The Real Formula for Wealth
Let’s clear something up.
Total Wealth = Financial Capital + Human Capital – Liabilities.
But most financial capital managers?
They’ll only talk to you about one part of that equation—the part that lines their pockets.
The more financial capital you pump into their funds, the more they manage. That means bigger fees, bigger bonuses, and bigger paydays for them. Meanwhile, you’re led to believe you’re “missing out” if you’re not in the game.
But here’s what they won’t say:
Financial capital doesn’t create wealth.
It simply preserves the wealth you’ve already made.
🚀 Human Capital: The Secret Engine of Wealth Creation
Want to know where wealth really begins? It’s in you.
Human Capital is everything you’ve developed over your lifetime:
- Your skills and talents
- Your drive and mindset
- Your ability to adapt, earn, and grow
- Your relationships, values, and reputation
And guess what? You can invest in these things—just like a portfolio.
Think:
- A side hustle you control
- A portfolio career that grows with you
- An encore career doing something you love
- A small business that serves your community
These aren’t just “alternatives.”
They’re engines of sustainable income—and they don’t need a stock market to thrive.
🧠The Case for Human-Centred Wealth Planning
Let’s put this in perspective.
Most investment strategies, even in private equity circles like Moonfare (which manages over €3 billion), rely on you creating wealth first—through your job, business, or creative work—before you can even think about investing.
And let’s be honest: long-term gains after inflation, fees, and taxes?
They’re not guaranteed.
But creating your own earnings engine? That’s something you can control.
And when done right, it’s less volatile, more resilient, and deeply fulfilling.
🤔 So, What’s the Plan?
Here’s what you can do next:
- Reframe your wealth strategy.
Start with you. Plan your life, then plan your money. - Audit your human capital.
What skills, passions, and experiences could you be leveraging? - Create new income streams.
Look at ways to earn beyond employment—on your own terms. - Be wary of one-sided advice.
If it only talks about financial capital, it’s incomplete.
đź‘Š Final Thought
Let’s stop pretending that working people are “missing a trick” because they don’t throw their savings into the markets.
The real trick? Believing that’s the only path to security.
Human Capital isn’t a footnote in your future. It’s the foundation.
So let’s stop feeding a system that profits from our ignorance.
Let’s start investing where it really matters—in ourselves.
Academy of Life Planning 