Anton Kreil - Respect Money & Be Indifferent Towards It

Summary

In this insightful discussion, Anton addresses common misconceptions about money, emphasizing the importance of understanding its true function to foster respect for it. He dispels the myth that money is inherently evil, differentiating between positive greed, which drives personal and familial betterment, and negative greed that harms others. Anton explains the necessity of capital markets, comparing money and labor as commodities with prices, and stresses the societal benefits of a functioning monetary system. He challenges the notion that money brings problems, arguing that issues arise from poor money management, not money itself. Anton advocates for indifference towards money's emotional pull, suggesting that awareness and respect for money, without emotional attachment, are crucial for success.

Takeaways

• 💡 Money serves a crucial function in society, solving the 'double coincidence of wants' problem in a barter economy.
• 🤔 People often misunderstand the purpose of money, leading to a lack of respect for it.
• 😣 Emotional barriers towards money can hinder one's financial success.
• 🚫 The belief that money is the root of all evil is a misconception; it's negative greed that causes harm.
• 💰 Positive greed, or the desire to improve one's life and that of one's family, is seen as acceptable and not inherently harmful.
• 🌐 Money is a commodity, and so is labor; both have prices in the market.
• 🏦 Capital markets are essential for society's functioning as they facilitate the optimal allocation of resources.
• 📉 When capital is locked out of the market, it can lead to economic depression.
• 💼 Understanding the function of money and capital markets is vital for personal and societal prosperity.
• 💸 Money doesn't inherently bring happiness, but it can contribute to a happier life when managed properly.
• 🧘 Becoming indifferent to money, while understanding and respecting its function, is key to financial success.

Q & A

What is the main issue Anton identifies with how young people view money?

Anton identifies two main issues: the first is a lack of understanding of the function and purpose of money, leading to a lack of respect for it. The second is having emotional barriers towards money.

What is the 'double coincidence of wants' that Anton refers to?

The 'double coincidence of wants' is a concept that explains the function of money. It refers to the challenge in a barter economy where two parties must both have something the other wants in order to make a trade. Money solves this problem by acting as an intermediary that everyone accepts.

How does Anton differentiate between positive and negative greed?

Positive greed is the desire to improve one's own life and that of one's family, which Anton views as natural and acceptable. Negative greed is the desire for wealth that involves harming or abusing others, which he views as harmful.

What does Anton say about the idea that 'money is the root of all evil'?

Anton argues that it's not money itself that is the root of all evil, but rather greed, especially in the form of harming others for personal gain.

Why does Anton believe that money is necessary for society to function?

Anton states that money is necessary because it allows for the efficient allocation of resources through capital and labor markets. Without money and capital markets, society would not function as it does today.

What does Anton suggest about the relationship between labor and capital in an enterprise?

Anton suggests that in an enterprise, there are only two inputs: capital and labor, each with its own price. Capital has a price in the form of interest, and labor has a price based on what workers are willing to accept.

What happens according to Anton when capital is locked out of the market?

Anton states that when capital is locked out of the market, there is widespread depression because capital is a commodity that needs to be transacted to allocate resources optimally.

How does Anton feel about the common belief that having more money leads to more problems?

Anton disagrees with this belief, stating that problems arise not from having more money, but from not managing it properly. He suggests that with proper management, money can lead to more comfort, freedom, and choices.

What does Anton mean when he says one should be 'indifferent' to money?

Being indifferent to money, according to Anton, means not being emotionally affected by the amount of money one sees. It's about understanding its function and respecting it without being swayed by the desires it can fulfill.

What is the importance of understanding the function of money according to Anton?

Understanding the function of money is important because it leads to respect for money and its role in society. It also helps in managing money properly and recognizing the difference between positive and negative greed.

How does Anton illustrate the emotional barriers people have towards money?

Anton uses the example of placing different amounts of money on the table and observing how people's perceptions change with the amount. He points out that money itself is indifferent to the person, and the emotional response is a barrier that needs to be overcome.

Outlines

00:00

💼 Understanding Money's Role

Anton discusses the common misconceptions about money and emphasizes the importance of understanding its true function. He points out that many people fail to grasp why money exists, leading to a lack of respect for it. Anton argues that money is not inherently evil, but rather a tool that has facilitated societal progress by overcoming the limitations of a barter economy. He introduces the concept of 'the double coincidence of wants' as a key to understanding money's role in society. Anton also differentiates between positive greed, which drives personal and familial betterment, and negative greed, which involves harming others for personal gain.

05:01

💼 Respecting Money and Capital Markets

The speaker continues by explaining the necessity of capital markets for the functioning of society. He describes how money and labor are commodities with prices, with interest for capital and wages for labor. Anton stresses that capital markets are essential for resource allocation and that historical instances of capital exclusion have led to economic depression. He counters the popular narrative that the system is broken, arguing that it works well and that there is no better alternative. Anton also addresses the emotional barriers people have towards money and suggests that understanding its function can help in managing one's finances effectively.

10:15

💼 Money's Indifference

Anton uses a thought experiment with different amounts of money to illustrate the emotional reactions people have towards it. He points out that as the amount increases, so does the perceived value and the desires it can fulfill. However, he emphasizes that money itself is indifferent to the individual and that all problems associated with money stem from the person's attitude, not the money itself. Anton suggests that one should be aware of money's function but remain emotionally indifferent to it, regardless of the amount.

15:16

💼 The Path to Success with Money

In the final paragraph, Anton concludes that understanding and respecting money, while also being indifferent to it, is crucial for success. He suggests that this balanced approach will naturally attract money and enable individuals to use it effectively. Anton encapsulates the idea that awareness and indifference are the keys to harnessing money's power without being controlled by it, setting the stage for a successful financial journey.

Keywords

💡Money

Money is a medium of exchange that allows goods and services to be traded efficiently. In the video, Anton emphasizes the importance of understanding the purpose of money, contrasting it with the common misconception that it is the root of all evil. He explains that money is a tool that facilitates trade and economic activity, and it is the lack of understanding and respect for its function that can lead to problems, not money itself.

💡Double Coincidence of Wants

The 'double coincidence of wants' is a concept in economics that refers to the need for both parties in a barter transaction to have something the other wants. Anton uses this to illustrate the necessity of money as a medium of exchange that solves the problem of having to find a trading partner who wants what you have. Without money, trade would be extremely limited and inefficient.

💡Greed

Greed is defined as an excessive or insatiable desire for wealth or possessions. Anton distinguishes between 'positive greed', which is the desire to improve one's life and that of one's family, and 'negative greed', which involves harming others for personal gain. He argues that money itself is not evil, but rather it is the negative form of greed that is harmful.

💡Capital

Capital refers to funds or assets available for use in the production of further wealth. Anton explains that capital is a commodity with a price, which is interest. He stresses the importance of capital markets for the functioning of society, as they allow for the optimal allocation of resources based on supply and demand.

💡Labor

Labor in the context of the video refers to the work that people do, which is also a commodity with a price. Anton mentions that labor has a market and a price, which is the wage that workers are willing to accept. He discusses how the balance between capital and labor is crucial for the health of an economy.

💡Emotion towards Money

Anton discusses the emotional barriers people have towards money, which can prevent them from understanding and respecting its function. He suggests that people often view money emotionally, either desiring it excessively or fearing it, rather than seeing it as a neutral tool for trade and economic activity.

💡Respect for Money

Respecting money, as discussed in the video, means understanding its role and function in society. Anton argues that when people respect money, they are more likely to use it wisely and effectively, leading to better financial outcomes. Respect does not mean being obsessed with money but rather recognizing its importance in facilitating trade and economic growth.

💡Indifference

Being indifferent to money, according to Anton, means not letting emotions dictate one's relationship with it. He suggests that one can respect money's function while remaining emotionally indifferent to the amount of money they possess. This balance allows individuals to use money effectively without becoming slaves to their emotions.

💡Barter Economy

A barter economy is a system where goods and services are directly exchanged without using money as an intermediary. Anton uses the concept of a barter economy to highlight the limitations and inefficiencies of trade without money, thus emphasizing the importance of money in modern economies.

💡Wealth

Wealth in the video is discussed in the context of the accumulation of assets and resources. Anton points out that wealth is not inherently negative, and it is the misuse of money in the pursuit of wealth that can lead to problems. He also suggests that managing money properly can lead to a better quality of life.

💡System

The 'system' refers to the broader economic and financial structures within which money operates. Anton addresses the common belief that the system is broken, arguing that it is not perfect but that there is no better alternative. He encourages understanding the system to navigate it successfully rather than rejecting it outright.

Highlights

The importance of understanding the function of money

Lack of respect for money due to not understanding its purpose

Emotional barriers towards money as a second major problem

The myth that money is the root of all evil

The concept of the double coincidence of wants in understanding money

The necessity of money for the functioning of society

The difference between positive and negative greed

Money as a medium that facilitates transactions

The role of capital and labor in enterprise

Capital markets are essential for society's function

The impact of labor demands on capital and vice versa

The idea that money doesn't make you happy is a misconception

The importance of managing money properly to avoid problems

The misconception that having more money leads to more problems

Being indifferent to money despite understanding its function

The key to success is understanding and respecting money

The psychological aspect of money and its impact on individuals

Transcripts

Anton do you remember the other day in

Singapore you're talking about what

young people do wrong what do you think

they could do right

it comes down to to a number of things

and they are all connected but probably

one of the most important things I think

it's actually the way people view money

right and the way that there's two

there's two main problems with most

people in the way that they view money

the first major problem but I've picked

up on over the years is people not

really understanding the function of my

why it exists and if you don't

understand why money exists and it's

real function you tend to have no

respect for it and the second thing is

actually to do with emotion towards my

so having some sort of emotional barrier

towards money itself so you know with

the first one for example like the for

the function of Mike and the purpose of

why it actually exists you know we're

always told these messages where like

for example money is the root of all

evil money doesn't make you happy the

more money you have the more problems

you're going to have but I just want you

to think about it for a second because

it's pretty damn obvious okay but people

always miss this point just imagine a

world that didn't have any money in it

at all

money obviously has a function and you

know in your own time you can go and

look at this online because it's pretty

well-known amongst people who understand

the function of money so look look up

the double coincidence of wants the

double coincidence of wants is really

important to understanding the function

of money because without money we say

II live in a barter economy and

everything that we're used to consuming

in the world now has come about because

of the function of money I know it makes

society work it's it's something that if

you if you understand why it exists to

solve the need of the double coincidence

of once you respect it more and people

don't get this so look up the double

coincidence of wants and look up the

alternatives so the the the the barter

economy you know that's the alternative

and you know we're led to believe a lot

of the time that wanting money is a bad

thing and people blur the lines between

wanting to do better for yourself and

your family and that type of greed and

the greed of harming or abusing other

people and money is the medium through

that sit so one in my mind is a positive

greed in that you want to do better for

yourself and you want to do better for

your family in my mind there's nothing

wrong with that the other type of greed

obviously is not good it's it's a

negative greed where you're harming

other people to become wealthy and you

don't have to do that you know if you

just understand the function of money

firstly and respect it you'll realize

that money isn't the root of all evil

it's greed that's the root of all evil

in a negative sense when you're harming

other people money has a function and

there's a positive greed so again

imagine your life or the world without a

money in it everything that you consume

everything that you experience these

days is a fun

of the monetary system that's built up

over hundreds of years and we've come

from the bottle economy to be where we

are today without it society literally

would not function so understand it and

respect it that's the first thing and

understand the difference between

positive and negative greet and do the

right things and what you've also got to

understand as well is money itself in

enterprise for example there's only two

inputs to enterprise capital and labor

and what you've got to understand is

that money itself is a commodity and

labor is a commodity as well and they

both have prices so capital has a price

and labor has a price

so for capital the price is interest and

for labor it's the price that Labour is

willing to work for so there's a labor

market and in any enterprise there's

just two inputs capital and labor and

capital markets are absolutely necessary

society would not function without

capital markets because capital is a

commodity and has a price and it needs

to be transacted and it allocates

resources as optimally as possible

because there's demand and supply for

capital and demand and supply for labor

and when labor wants too much of the

share of enterprise and capital gets to

less capital leaves it goes away and

that's not good for labor long term so

when you understand the function of

money and capital markets you understand

that it's absolutely necessary for them

to exist because in all circumstances in

history when capital has been locked out

of the market and left there's been

widespread depression

money makes society work and the a small

problem is that the you know these days

it's a very it's very popular to have

this view of the world this view of

money that this the system is broken and

doesn't work well it does because there

is no better alternative it's not

perfect but there's no better

alternative and just because for example

you know someone was born with no

capital doesn't mean the system is wrong

or unfair they just need to understand

the role of money and understand its

function so all of these messages that

we get about money so money is the root

of all evil no it's not Greta's money

doesn't make you happy well people that

I know and myself have with money who

have done quite well for themselves we

know that you think that we're not

stupid you know these guys aren't stupid

and they absolutely know it doesn't make

them happy they're generally speaking

exactly the same as they were when they

were young and had no money

very very exactly the same type of

people but they're just a little bit

older and a little bit wiser and you

know the other sayings so the more money

you have the more problems you have well

it's just not the case the more money

you only have problems if you don't

manage your money properly so if you

manage it well then you're gonna you're

gonna do okay

you're good you're actually probably

gonna be more comfortable more relaxed

have more freedom more choices and

probably help it helps you become

happier it doesn't make you happy it

just helps you become happier so all

these messages that people get told you

know constantly growing up this creates

the second problem as well

so first of all not understanding the

function of

but secondly also having emotional

barriers to money it's it's this is the

second problem and actually they I can

just go off and I'll I'll come back in a

second to illustrate the point okay

alright alright I'll be back I'll be

back in a second wait there I can go and

get get something and to illustrate the

point more accurately okay I'll show you

probably mean okay so $20 on the table

okay look at it again look at it is this

magic trick so when you look at the $20

yeah what do you think of it it's a

couple of drinks or a meal or a soon I

took him whatever okay yeah but that's

what it can buy you sure but what do you

actually think of it yeah so okay okay

so not much right right okay now let's

move on

what about a hundred dollars sure

you know again I think about that in

terms of what I can buy with it and that

okay a night out or going to a nice

restaurant yeah whatever so yeah it's

like a night out maybe with a few other

people like you sure go to a nice

restaurant have a few drinks take your

family out of whatever right well what

do you think of it I mean it's a decent

amount of money if I lost it I'd be a

bit annoyed sort of thing okay let's

make let's make the stakes higher okay

so here's a thousand dollars what do you

think of that say it's become a decent

amount of money okay yes what's your

white a lot what can you buy with a

thousand dollars good bye appliances you

know things that people typically buy

with it yeah phones TVs games consoles

well yeah exactly

okay let's take this to a slightly

higher level five thousand dollars what

do you think of the five thousand bucks

well it's I mean that is a lot of money

by any objective standards that's like

once somebody's monthly or even salary

for two months sure quite a few people

so what do you think of it again it's

you know it's a considerable amount of

money for a lot of people now I could

put any amount of money down on our

table fill I could put ten thousand

hundred thousand a million but let's go

back to the beginning

let's take off the 5100 and go back to

the 20 the next question is this what do

you think the $20 note thinks of you

nothing it's just money it's just a

piece of paper of course you can't think

it's a piece of paper with 20 written on

it it's a commodity it doesn't think

it's a commodity that's used to transact

for goods and services to satisfy wants

and needs that's all it is okay the

problem with it with most people what

they don't understand is that all the

problems with money exists with them not

with the money the money doesn't think

anything of you so whether it's $20 $100

thousand dollars $5,000 $10,000 a

hundred thousand dollars a million

dollars it doesn't matter because a

million dollars or a hundred thousand

dollars or ten thousand dollars is just

a whole bunch of 20s that think nothing

of you so there's no difference except a

monetary value so this is that this is

the second major problem it's having

emotional barriers because the more

money I put down on the table the more

you think of it because you think

automatically what it can buy you to

satisfy the wants and needs right the

key is to be indifferent

so going right back to the beginning

understanding the function of money is

very important in order to respect my

but at the same time you also have to

reduce to zero your emotional barriers

and you have to be indifferent now this

brings up another interesting point how

can you actually be respectful of money

but at the same time being different

it's kind of contradictory yeah okay but

in this context it's not contradictory

and I'll tell you why because respect in

this context is simply having awareness

so it's having awareness of what money

actually is and being indifferent to

money when you look at it when you see

more and more and more of it and that's

the key so being aware and understanding

money where it comes from so if you can

actually manage to understand it

properly and understand its function and

be aware and be respectful to it but at

the same time being different that's the

key to actually starting on the road to

becoming successful because money will

come to you you will respect it but you

also know at the same time what it can

accomplish as well and if that makes

sense to you

yeah then you've got through that

barrier anyway we have a dinner booked

at a restaurant so where we should hit

the road I'm quite hungry okay