Social capital is the value obtained from social relationships arising out of bonding between people with similar interests and in most cases resulting in reciprocity. A key aspect of social capital is building and maintaining trust, hence necessitating consistent investment and nurturing. Family, friends and colleagues at work or members of a group are some examples of relationships through which one can build social capital. Members of a social network enjoy mutual benefits and they can count on each other in times of difficulty.
While teenagers and young adults invest heavily in social interactions among their peers, many people tend to lessen their investment in relationships as family and career responsibilities increase. Sadly, this affects the immediate family unit too as the pressures of life increases. Just as building financial capital requires concerted effort and discipline, so does building social capital whose rewards provide a lot of what money cannot buy.
Living life with a long-term perspective helps one realize that when you eventually get the financial resources you are working so hard for, having trusted loving relationships will greatly enhance your enjoyment of those resources. Research findings show that the one thing that greatly affects satisfaction of life in retirement is not finances but relationships predominantly, relationship with a spouse. An important part of finishing well is a thriving family that is living a disciplined, responsible and well-balanced life taking care of its own needs and those of others.
I have found the five principles of managing money applicable to building social capital as well and I am constantly using them to guide my interactions as follows:
Spend less than you earn: I try not to spend all my energies on building financial capital since it accounts for only a part of my overall quality of life, instead I attempt to allocate necessary resources to building social and spiritual capital.
Create a margin: Life is full of uncertainties and tough times still lie ahead. I endeavor to create and maintain relationships during the good times when I do not need them, and they have in turn been of great assistance during the hard times.
Avoid use of debt: This principle cautions against borrowing from the future by presuming that I will have the time, energy or resources at a future date to do what I need to do now. I realize that tomorrow might be too late and I‘d rather pay the price now or pay dearly later.
Live life with a long-term perspective: I live with the realization that every decision counts and how I use my resources today determines the foundation on which I am building my life. This motivates me to nurture my relationships today, spend time with my daughter, get to know her while she is growing up and trusting that she will allow me to continue being an influence in her life during the turbulent young adult years and into adulthood.
Give generously: I have learnt that a high quality of life has all the hallmarks of a life generously shared with others. I choose to share my time, talents and treasure and in turn, I get to enjoy the company of others as I celebrate my joys, and achievements.
The unprecedented stay at home order has afforded many people extended time with their immediate family members. This might have been a very painful time for those lacking in social capital with their family members and in contrast a wonderful time for those who had already made the necessary investment. Fortunately, it is never late to take the right step in the right direction.
I have benefited greatly from scriptural insights on this topic as per bible verses below.
- Ephesians 5:15-16 (NCV): So be very careful how you live. Do not live like those who are not wise, but live wisely. Use every chance you have for doing good, because these are evil times.
- Psalms 78:4-6 (NLT): We will not hide these truths from our children; we will tell the next generation about the glorious deeds of the Lord, about his power and his mighty wonders. For he issued his laws to Jacob; he gave his instructions to Israel. He commanded our ancestors to teach them to their children, so the next generation might know them— even the children not yet born— and they in turn will teach their own children.
- 1 Timothy 5:10 (NIV): and is well known for her good deeds, such as bringing up children, showing hospitality, washing the feet of the Lord’s people, helping those in trouble and devoting herself to all kinds of good deeds.
- Hebrews 10:25 (NLT): And let us not neglect our meeting together, as some people do, but encourage one another, especially now that the day of his return is drawing near.
- 2 Corinthians 9:6 (NIV): Remember this: Whoever sows sparingly will also reap sparingly, and whoever sows generously will also reap generously.
In the next issue we will address building spiritual capital.