Turn Money into Capital to have sustained financial independence!

When you are paid at work, make sure to elevate a part of that salary to capital. Money is a unit of capital and does not have an inherent regenerative ability in its stable state. The reward of most Labour is money. But Labour expires or retires which means sources of money can be cut-off. Breakthrough comes when one earns money via Capital/Equity because capital neither retires nor expires, unless restructured.

In other words, to find sustained financial independence, find how to turn some of your money into capital. That principle is the same for individuals, families and nations. Poor nations operate at the level of money; rich nations operate at the capital level.

The formation of capital expands the wealth of nations. Simply, when people move their money to the level of capital, they create wealth.

In the five factors of production – land, labour, Capital, entrepreneur and knowledge – there is no Money listed. Capital represents assets (physical and non-physical encapsulating skills, education, knowledge systems, etc) which are used to make goods and services during the transmutation process of turning ideas, and raw materials, into finished goods. Money does one thing: means to exchange goods and services.

In short, the unit of Capital is money (i.e capital is measured in monetary terms).

What is the right percentage you need to elevate on your monthly salary (i.e.your money) to capital?  In Tekedia Mini-MBA, in the Personal Economy lecture (your own economy), I provide a foundational thesis to help on that modelling.  Join me in the next edition of Tekedia Min-MBA which begins on Feb 10,  and help us refine and improve the modelling. Go here and register.

The Untapped Wealth of Nations, and How Nigeria Remains A Nation of Money Instead of Capital

Register for Tekedia Mini-MBA (Feb 10 - May 3, 2025), and join Prof Ndubuisi Ekekwe and our global faculty; click here.