Anton Kreil - Respect Money & Be Indifferent Towards It
Summary
TLDRIn 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
- ๐ก Money serves a crucial function in society, solving the 'double coincidence of wants' problem in a barter economy.
- ๐ค People often misunderstand the purpose of money, leading to a lack of respect for it.
- ๐ฃ Emotional barriers towards money can hinder one's financial success.
- ๐ซ The belief that money is the root of all evil is a misconception; it's negative greed that causes harm.
- ๐ฐ Positive greed, or the desire to improve one's life and that of one's family, is seen as acceptable and not inherently harmful.
- ๐ Money is a commodity, and so is labor; both have prices in the market.
- ๐ฆ Capital markets are essential for society's functioning as they facilitate the optimal allocation of resources.
- ๐ When capital is locked out of the market, it can lead to economic depression.
- ๐ผ Understanding the function of money and capital markets is vital for personal and societal prosperity.
- ๐ธ Money doesn't inherently bring happiness, but it can contribute to a happier life when managed properly.
- ๐ง 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
๐ผ 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.
๐ผ 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.
๐ผ 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.
๐ผ 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.
Mindmap
Keywords
๐กMoney
๐กDouble Coincidence of Wants
๐กGreed
๐กCapital
๐กLabor
๐กEmotion towards Money
๐กRespect for Money
๐กIndifference
๐กBarter Economy
๐กWealth
๐กSystem
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
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