Anton Kreil - Respect Money & Be Indifferent Towards It

InstituteofTrading
16 Jan 201817:00

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

  • ๐Ÿ’ก Money serves a crucial function in society, solving the 'double coincidence of wants' problem in a barter economy.
  • ๐Ÿค” People often misunderstand the purpose of money, leading to a lack of respect for it.
  • ๐Ÿ˜ฃ Emotional barriers towards money can hinder one's financial success.
  • ๐Ÿšซ The belief that money is the root of all evil is a misconception; it's negative greed that causes harm.
  • ๐Ÿ’ฐ Positive greed, or the desire to improve one's life and that of one's family, is seen as acceptable and not inherently harmful.
  • ๐ŸŒ Money is a commodity, and so is labor; both have prices in the market.
  • ๐Ÿฆ Capital markets are essential for society's functioning as they facilitate the optimal allocation of resources.
  • ๐Ÿ“‰ When capital is locked out of the market, it can lead to economic depression.
  • ๐Ÿ’ผ Understanding the function of money and capital markets is vital for personal and societal prosperity.
  • ๐Ÿ’ธ Money doesn't inherently bring happiness, but it can contribute to a happier life when managed properly.
  • ๐Ÿง˜ 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

๐Ÿ’ผ 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

๐Ÿ’ผ 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

๐Ÿ’ผ 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

๐Ÿ’ผ 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

๐Ÿ’กMoney

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.

๐Ÿ’กDouble 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.

๐Ÿ’กGreed

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.

๐Ÿ’กCapital

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.

๐Ÿ’กLabor

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.

๐Ÿ’กEmotion 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.

๐Ÿ’กRespect 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.

๐Ÿ’กIndifference

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.

๐Ÿ’กBarter 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.

๐Ÿ’กWealth

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.

๐Ÿ’กSystem

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

play00:11

Anton do you remember the other day in

play00:15

Singapore you're talking about what

play00:19

young people do wrong what do you think

play00:22

they could do right

play00:29

it comes down to to a number of things

play00:32

and they are all connected but probably

play00:38

one of the most important things I think

play00:41

it's actually the way people view money

play00:44

right and the way that there's two

play00:50

there's two main problems with most

play00:53

people in the way that they view money

play00:56

the first major problem but I've picked

play00:59

up on over the years is people not

play01:02

really understanding the function of my

play01:05

why it exists and if you don't

play01:10

understand why money exists and it's

play01:13

real function you tend to have no

play01:16

respect for it and the second thing is

play01:19

actually to do with emotion towards my

play01:27

so having some sort of emotional barrier

play01:31

towards money itself so you know with

play01:35

the first one for example like the for

play01:38

the function of Mike and the purpose of

play01:40

why it actually exists you know we're

play01:43

always told these messages where like

play01:46

for example money is the root of all

play01:50

evil money doesn't make you happy the

play01:54

more money you have the more problems

play01:56

you're going to have but I just want you

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to think about it for a second because

play02:01

it's pretty damn obvious okay but people

play02:04

always miss this point just imagine a

play02:08

world that didn't have any money in it

play02:12

at all

play02:14

money obviously has a function and you

play02:18

know in your own time you can go and

play02:19

look at this online because it's pretty

play02:22

well-known amongst people who understand

play02:24

the function of money so look look up

play02:28

the double coincidence of wants the

play02:33

double coincidence of wants is really

play02:35

important to understanding the function

play02:37

of money because without money we say

play02:40

II live in a barter economy and

play02:42

everything that we're used to consuming

play02:44

in the world now has come about because

play02:46

of the function of money I know it makes

play02:52

society work it's it's something that if

play02:58

you if you understand why it exists to

play03:03

solve the need of the double coincidence

play03:04

of once you respect it more and people

play03:09

don't get this so look up the double

play03:13

coincidence of wants and look up the

play03:15

alternatives so the the the the barter

play03:20

economy you know that's the alternative

play03:21

and you know we're led to believe a lot

play03:27

of the time that wanting money is a bad

play03:31

thing and people blur the lines between

play03:36

wanting to do better for yourself and

play03:38

your family and that type of greed and

play03:42

the greed of harming or abusing other

play03:48

people and money is the medium through

play03:52

that sit so one in my mind is a positive

play03:57

greed in that you want to do better for

play04:00

yourself and you want to do better for

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your family in my mind there's nothing

play04:06

wrong with that the other type of greed

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obviously is not good it's it's a

play04:13

negative greed where you're harming

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other people to become wealthy and you

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don't have to do that you know if you

play04:21

just understand the function of money

play04:23

firstly and respect it you'll realize

play04:27

that money isn't the root of all evil

play04:31

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

play04:33

in a negative sense when you're harming

play04:35

other people money has a function and

play04:38

there's a positive greed so again

play04:42

imagine your life or the world without a

play04:45

money in it everything that you consume

play04:49

everything that you experience these

play04:51

days is a fun

play04:53

of the monetary system that's built up

play04:56

over hundreds of years and we've come

play04:59

from the bottle economy to be where we

play05:01

are today without it society literally

play05:04

would not function so understand it and

play05:07

respect it that's the first thing and

play05:10

understand the difference between

play05:11

positive and negative greet and do the

play05:15

right things and what you've also got to

play05:20

understand as well is money itself in

play05:24

enterprise for example there's only two

play05:28

inputs to enterprise capital and labor

play05:33

and what you've got to understand is

play05:36

that money itself is a commodity and

play05:40

labor is a commodity as well and they

play05:42

both have prices so capital has a price

play05:46

and labor has a price

play05:47

so for capital the price is interest and

play05:51

for labor it's the price that Labour is

play05:53

willing to work for so there's a labor

play05:56

market and in any enterprise there's

play05:59

just two inputs capital and labor and

play06:02

capital markets are absolutely necessary

play06:07

society would not function without

play06:09

capital markets because capital is a

play06:11

commodity and has a price and it needs

play06:13

to be transacted and it allocates

play06:18

resources as optimally as possible

play06:20

because there's demand and supply for

play06:22

capital and demand and supply for labor

play06:24

and when labor wants too much of the

play06:28

share of enterprise and capital gets to

play06:31

less capital leaves it goes away and

play06:35

that's not good for labor long term so

play06:42

when you understand the function of

play06:44

money and capital markets you understand

play06:49

that it's absolutely necessary for them

play06:51

to exist because in all circumstances in

play06:55

history when capital has been locked out

play06:58

of the market and left there's been

play07:01

widespread depression

play07:04

money makes society work and the a small

play07:13

problem is that the you know these days

play07:15

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

play07:18

this view of the world this view of

play07:22

money that this the system is broken and

play07:27

doesn't work well it does because there

play07:30

is no better alternative it's not

play07:32

perfect but there's no better

play07:35

alternative and just because for example

play07:38

you know someone was born with no

play07:41

capital doesn't mean the system is wrong

play07:45

or unfair they just need to understand

play07:49

the role of money and understand its

play07:51

function so all of these messages that

play07:53

we get about money so money is the root

play07:55

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

play08:00

doesn't make you happy well people that

play08:04

I know and myself have with money who

play08:08

have done quite well for themselves we

play08:11

know that you think that we're not

play08:13

stupid you know these guys aren't stupid

play08:15

and they absolutely know it doesn't make

play08:20

them happy they're generally speaking

play08:22

exactly the same as they were when they

play08:25

were young and had no money

play08:28

very very exactly the same type of

play08:30

people but they're just a little bit

play08:32

older and a little bit wiser and you

play08:36

know the other sayings so the more money

play08:40

you have the more problems you have well

play08:42

it's just not the case the more money

play08:45

you only have problems if you don't

play08:48

manage your money properly so if you

play08:50

manage it well then you're gonna you're

play08:53

gonna do okay

play08:54

you're good you're actually probably

play08:55

gonna be more comfortable more relaxed

play08:58

have more freedom more choices and

play09:00

probably help it helps you become

play09:02

happier it doesn't make you happy it

play09:05

just helps you become happier so all

play09:08

these messages that people get told you

play09:10

know constantly growing up this creates

play09:13

the second problem as well

play09:14

so first of all not understanding the

play09:16

function of

play09:17

but secondly also having emotional

play09:22

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

play09:26

second problem and actually they I can

play09:30

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

play09:34

second to illustrate the point okay

play09:36

alright alright I'll be back I'll be

play09:40

back in a second wait there I can go and

play09:42

get get something and to illustrate the

play09:44

point more accurately okay I'll show you

play09:59

probably mean okay so $20 on the table

play10:15

okay look at it again look at it is this

play10:20

magic trick so when you look at the $20

play10:28

yeah what do you think of it it's a

play10:33

couple of drinks or a meal or a soon I

play10:38

took him whatever okay yeah but that's

play10:41

what it can buy you sure but what do you

play10:43

actually think of it yeah so okay okay

play10:51

so not much right right okay now let's

play10:56

move on

play10:58

what about a hundred dollars sure

play11:04

you know again I think about that in

play11:07

terms of what I can buy with it and that

play11:08

okay a night out or going to a nice

play11:13

restaurant yeah whatever so yeah it's

play11:16

like a night out maybe with a few other

play11:18

people like you sure go to a nice

play11:20

restaurant have a few drinks take your

play11:23

family out of whatever right well what

play11:25

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

play11:34

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

play11:36

bit annoyed sort of thing okay let's

play11:42

make let's make the stakes higher okay

play11:43

so here's a thousand dollars what do you

play11:57

think of that say it's become a decent

play12:02

amount of money okay yes what's your

play12:08

white a lot what can you buy with a

play12:10

thousand dollars good bye appliances you

play12:15

know things that people typically buy

play12:17

with it yeah phones TVs games consoles

play12:19

well yeah exactly

play12:21

okay let's take this to a slightly

play12:27

higher level five thousand dollars what

play12:39

do you think of the five thousand bucks

play12:42

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

play12:45

by any objective standards that's like

play12:47

once somebody's monthly or even salary

play12:52

for two months sure quite a few people

play12:54

so what do you think of it again it's

play12:59

you know it's a considerable amount of

play13:02

money for a lot of people now I could

play13:04

put any amount of money down on our

play13:05

table fill I could put ten thousand

play13:08

hundred thousand a million but let's go

play13:11

back to the beginning

play13:12

let's take off the 5100 and go back to

play13:17

the 20 the next question is this what do

play13:23

you think the $20 note thinks of you

play13:28

nothing it's just money it's just a

play13:31

piece of paper of course you can't think

play13:36

it's a piece of paper with 20 written on

play13:38

it it's a commodity it doesn't think

play13:42

it's a commodity that's used to transact

play13:45

for goods and services to satisfy wants

play13:47

and needs that's all it is okay the

play13:54

problem with it with most people what

play13:57

they don't understand is that all the

play14:00

problems with money exists with them not

play14:05

with the money the money doesn't think

play14:09

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

play14:13

thousand dollars $5,000 $10,000 a

play14:15

hundred thousand dollars a million

play14:17

dollars it doesn't matter because a

play14:20

million dollars or a hundred thousand

play14:22

dollars or ten thousand dollars is just

play14:24

a whole bunch of 20s that think nothing

play14:26

of you so there's no difference except a

play14:30

monetary value so this is that this is

play14:34

the second major problem it's having

play14:36

emotional barriers because the more

play14:38

money I put down on the table the more

play14:41

you think of it because you think

play14:45

automatically what it can buy you to

play14:47

satisfy the wants and needs right the

play14:49

key is to be indifferent

play14:51

so going right back to the beginning

play14:53

understanding the function of money is

play14:56

very important in order to respect my

play15:01

but at the same time you also have to

play15:05

reduce to zero your emotional barriers

play15:09

and you have to be indifferent now this

play15:13

brings up another interesting point how

play15:16

can you actually be respectful of money

play15:19

but at the same time being different

play15:22

it's kind of contradictory yeah okay but

play15:26

in this context it's not contradictory

play15:28

and I'll tell you why because respect in

play15:32

this context is simply having awareness

play15:36

so it's having awareness of what money

play15:40

actually is and being indifferent to

play15:45

money when you look at it when you see

play15:47

more and more and more of it and that's

play15:51

the key so being aware and understanding

play15:56

money where it comes from so if you can

play16:01

actually manage to understand it

play16:06

properly and understand its function and

play16:08

be aware and be respectful to it but at

play16:11

the same time being different that's the

play16:15

key to actually starting on the road to

play16:18

becoming successful because money will

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come to you you will respect it but you

play16:29

also know at the same time what it can

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accomplish as well and if that makes

play16:39

sense to you

play16:40

yeah then you've got through that

play16:42

barrier anyway we have a dinner booked

play16:46

at a restaurant so where we should hit

play16:51

the road I'm quite hungry okay

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