Hey Lykkers! Let’s play a quick game. When you hear the word “investment,” what pops into your head first? If you said stocks, crypto, or a 401k, you’re in the majority.

We’ve been trained to think of investments as ticker symbols scrolling on a screen.

But modern financial theory itself asks us to think broader. gabormelli's research defines an investment as "is a commitment of resources with the expectation of achieving future benefits."

Today, we’re stepping away from the charts to explore the “Real World” assets you might already own. This isn’t about replacing your stock portfolio; it’s about expanding your idea of what creates durable wealth and security.

Yes, home equity is the classic “real asset.” But the principle goes deeper. In personal finance, we often ignore our human capital—the present value of our future earning potential.

Asset #1: Your Skills & Knowledge (Your “Human Capital”)

This is your most valuable engine. Every skill you have is an income-generating asset.

The Economic View: Treat skill-building like funding an asset. Taking a course, earning a certification, or mastering a new technology isn’t just an expense—it’s capital expenditure for your career. The Bureau of Labor Statistics (BLS) data consistently shows a strong positive correlation between educational attainment/credentialing and higher median weekly earnings.

Actionable Audit: Identify one skill in your field with a measurable supply-demand gap (resources like ONET OnLine provide this data). Investing in that skill offers a direct potential return on investment (ROI) through increased earning power.

Asset #2: Your Side Hustle or Creative Project (Your “Private Equity”)

That small business idea, Etsy shop, or freelance service isn’t just “extra cash.” It’s a micro-private equity holding.

The Investment View: The time and money you put into launching it are your seed funding. The profit it generates is your dividend. Its growth potential is your capital appreciation. According to Bankrate’s 2023 Side Hustles Survey, about 39% of U.S. adults said they have a side hustle (defined as earning extra income outside their main job).

Actionable Audit: Give it the respect of a real business. Track its Gross Margin (as we discussed in a previous article!) and its customer acquisition cost.

Asset #3: Your Network & Relationships (Your “Social Capital”)

This isn’t about transactional connections. It’s about the trust and goodwill you’ve built, a concept sociologists term social capital.

Actionable Audit: Invest in your network like you’d reinvest dividends. Strategically build “weak ties” (as coined by sociologist Mark Granovetter), which are often more valuable for new information and opportunities than close-knit circles.

Asset #4: Your Physical Health & Energy (Your “Health Capital”)

You can’t compound wealth if you’re burned out. Your health is the infrastructure that supports all other assets.

The Actuarial View: Quality sleep, regular movement, and good nutrition aren’t just wellness goals; they’re performance maintenance for your primary asset (you!). They directly reduce future “liabilities” like medical costs and lost earning potential. The CDC emphasizes that chronic diseases, often preventable through lifestyle, drive the majority of the nation’s $4.1 trillion in annual health care costs.

Actionable Audit: View preventative health spending (quality food, gym membership, sleep tracking) not as discretionary consumption, but as essential capital preservation for your human capital.

Asset #5: Your Time (The Non-Renewable Resource)

Finally, the ultimate asset. Every financial investment is ultimately an exchange of time (which you spent earning money) for future time freedom.

Actionable Audit: Conduct a time audit. For one week, log your hours. Then, calculate the hourly value of your human capital (annual salary/2,000 hours). Does how you spend your time reflect its economic value? Reallocating low-value hours is a direct wealth-building strategy.

So, Lykkers, here’s your new, holistic balance sheet. Alongside your stocks and bonds, you hold a portfolio of Human Capital, Private Equity, Social Capital, Health Capital, and Time Capital.

Managing this full portfolio is what true, resilient wealth-building looks like. This week, pick one of these backyard assets and make a deliberate, informed investment in it. The returns will compound across every part of your life.