Originally written by Meaghan Burkett, posted in LinkedIn.

We’ve been exploring this question within the Place Based Capital Network and Initiative.

While there are common solutions—like raising the minimum wage, offering cash transfers, tax reforms, subsidies for essentials, and price controls—our focus is on actionable approaches for households and communities.

One approach gaining momentum for its ability to empower communities, build long-lasting wealth and strengthen resilience is: increasing and diversifying household income through asset ownership and capital income.

Currently, most individuals rely on a single source of income: employment. For many, this income alone is not enough to cover expenses, build savings and support their wellbeing. This dependence also leaves them vulnerable; if they lose their job, they lose their income.

Alternatively, households can boost and diversify their income by also holding shares in assets that produce financial returns. This approach not only adds new income streams, including passive income, but also helps households steadily grow wealth over time. This added financial security enables households to manage rising costs and builds resilience if one income source is impacted.

This approach creates a pathway to economic inclusion, income diversification, asset ownership, local control and wealth-building—with the capital benefits reinvested into the households and communities they serve.

If households choose to invest in local assets, it becomes a source of investment income for local initiatives, keeping money circulating within the community and amplifying its impact.

For households without initial capital, support can come from financial literacy programs, matching initiatives, and philanthropic donations.
Communities can also pool their resources through local development companies or funds to invest in larger projects.

This approach can help households and communities not only survive but thrive by fully participating in the economic and financial opportunities around them.

These are the kinds of solutions we’re working towards through the Place Based Capital Initiative.

We’d love to see national or state policy or strategy to advance this. In the meantime we’ll keep building on the ground.

Acknowledgments
The Place Based Capital Network helped to uncover this strategy: Ethical Fields, Griffith University Centre for Systems Innovation, Town Team Movement, Collaboration for Impact, CBH Group (Wheatbelt Partner), Newcastle City Council, Wimmera Southern Mallee Development, RDA AHFKI, Noosa Council, Cradle Coast Authority, Lake Macquarie City Council, THERW Collection, NEWROC, Regen Sydney, Regen Melbourne, Castlemaine Institute, Mount Alexander Shire Council, @Logan Child Friendly Community, Huon Valley Council, Shire of Augusta Margaret River, Western Murray Land Improvement Group and Glen Innes Severn Council.