Capital Generation: -

Capital generation is a way to accumulate money from all the available resources could be for a particular objective or may be many. To generate capital one can even take a loan as well, but that will add a liability to repay the same. Long term planning of achieving your objective is a tool to generate the capital for you so that you need not to go for a liability at the later age of your life.

Capital generation is a tool to create capital for your financial goals.

Ways to Generate Capital: -
A part from your income.
By liquidating asset.

Capital is required to spend on your needs. So, it is necessary to generate capital for financial needs you have.