No matter your interests, what sports teams you like, what career you choose or how introverted or extroverted you are, there will always be one common denominator, people. People are the most valuable resource on the planet. Period. Silver and gold will depreciate in value but humans will only increase in value. Therefore, knowing how to benefit from people is an extremely valuable skill. Which is why social capital is so important.

What is social capital?  There are many different definitions, but basically, it is your relationships with people.

Social capital is social networks, friendships, and communities. It is a group of people with similar interests bonding together, to create mutually beneficial relationships.

Each person is born with some social capital, that social capital takes form in your family. Your family is the first community you have, the first support group and the first resource. How you expand your social capital beyond your family is crucial to your future success. Everyone has relationships. Are your choosing good ones?  Do you seek out people who are in sync with the kind of ideas, ethics and drive that you wish to cultivate?

If you want to go quickly go alone if you want to go far, go together.

Artists are a great example of social capital because they have a tendency to build social capital with others artists. Their ability to do so is because of their authenticity and tendency to give. There is no better way to build social capital than by having a productive purpose and being genuine to your values. The otherwise discouraged artist is able to find comradery because of this encouraging community, which was created by social capital. This sense of community drives them to create, design a new logo for a local business or decorate a home. When used correctly social capital attracts other like-minded people into social networks.

Being proficient at navigating the waters of social capital is a necessity. There is negative and positive social capital.  If you are continuously invested in people who have zero sense of responsibility, make bad choices and bring you down, it will affect you. Social capital can be of negative value. We all have friends, who made poor choices in their friend groups and now suffer from the numerous harms of negative social capital.  Negative social capital with drain you physically and emotionally, while creating resistance to productivity. Alternatively, invest in people who are going to support, encourage and connect you with opportunities. And soon you will make your social capital the most valuable resource you have access to.

Social capital is the combinations of your friendships and the resources provide through those friendships. Resources are anything that allows someone to get something done. Resources could be a piece of equipment or an important piece of information. If your basement is flooding and you don’t have a pump but your friend has one they loan you, that is a benefit from social capital. For those going through addiction, an AA support group is a wonderful example of the benefits of social capital. If you are searching for a job social capital will be your most valuable resource, since it is predicted that at least 70 if not 80 percent of jobs are found through networking.

The size of your social network depends on your preferences and ability to network. If you are extremely outgoing you may have a very large social network. However, I caution is trading quality for quantity. A huge network can have very little value when there is a lack of support or alinement in goals. In the current age of technology, it’s easy to get caught up in the number of followers you have on Instagram instead of focusing on the people who are adding value and support to your life.  You are the one behind the wheel so make sure you are investing safely.

Social capital is currently increasing the quality of your life and of those around you at this very moment. When natural disasters strike, like recent hurricane Harvey, social capital is invaluable. The benefits of having a friend outside of the state whose home you could stay in are truly priceless. Without social capital, we wouldn’t have nonprofits or charities. Social capital is key to building strong communities.

Social capital has nothing directly to do with money. It is important that when making connections with people you are not motivated by prospective selfish gains. People can tell when your interest is disingenuine and they will not be receptive. Build your social capital on trust and common qualities.

Every person opens a door to new opportunities. Any person on the planet can be connected to any other person on the planet through a chain of acquaintances that has no more than five people in between. This is the power of social capital.

Remeber when building your social capital that you are deliberate of what kind of community you want to build. What values you stand for, what work ethic you support, what your goals are and how you can create value. Social capital is only growing and its reach affects the world of business as consumers drift away from the Yellow Pages, and Google, and instead use their network to find what they need to know. The most valuable resource may be sitting right next to you, invest in social capital.