Marcus learned favor banking from his grandmother, though she never called it that. "Help ten people," she'd say, "and one will save your life. You never know which one."
In the old economy, favors were nice. In the coming economy, favors are everything.
The New Exchange Rate
Old Economy: - Work 40 hours → Receive money → Buy needed items - Simple, transactional, impersonal
Emerging Economy: - Provide value → Build trust → Access network resources - Complex, relational, deeply personal
The Favor Banking System
Deposits: - Small: Daily helpfulness (information, introductions, minor assistance) - Medium: Significant time or effort investment - Large: Life-changing interventions or opportunities
Interest: - Compound trust over time - Reputation dividends - Network expansion effects
Withdrawals: - Always less than you've deposited - Strategic timing for maximum impact - Clear reciprocity expectations
Anna's Favor Banking Mastery
Anna, a laid-off financial analyst, started small. She offered free budget consultations to struggling neighbors. Not for money—she knew money was losing meaning. For connection.
Within six months: - She'd helped 30 families optimize their finances - 15 had offered reciprocal services - 5 became deep allies - 1 offered her a position managing their small business - All 30 would vouch for her integrity
Her favor bank balance? Massive. When her car broke down, she had three offers for free repair within an hour. When she needed temporary housing during renovation, five families offered space. When she wanted to start a community financial literacy program, she had instant credibility and support.
The Five Rules of Favor Banking
Rule 1: Track Everything (Privately) Keep meticulous records of gives and takes. Not for score-settling but for strategic awareness. Know your balance with everyone.
Rule 2: Give Without Strings The moment a favor feels transactional, it loses power. Give freely but strategically. The best favors feel like gifts but function like investments.
Rule 3: Diversify Your Portfolio Don't concentrate favors in one group or type. Spread your gives across demographics, geographies, and capabilities. Diversification creates resilience.
Rule 4: Time Your Withdrawals Never withdraw more than 70% of what you've deposited. Always leave a positive balance. Emergency withdrawals should be rare and followed by immediate redeposits.
Rule 5: Make It Memorable Forgotten favors have no value. Make your helps memorable through personal touch, perfect timing, or exceptional execution. Memorable favors generate compound interest.