What is the difference between money and capital? Chris Coffman explains both concepts with real world examples, as well as a clever analogy. Capital is the farm, and money what you can harvest from it. If you don't harvest from capital, you have to work to earn every dollar. If you never build capital (by investing), you will forever live in the world of money.
00:21 - What is the difference between money and capital?
01:22 - The time value of money
02:45 - Money enables instant action. It gives us the illusion of power. It is liquid and portable.
03:17 - Capital is what gives you power and freedom of more decisions.
09:32 - When living in the world of money, you're trapped on the treadmill of time. When you enter the world of capital, time becomes your friend. Time increases your options and power. In the world of money, time decreases your options and power.
20:09 - Summary: Money is like the harvest of capital. Capital is the farm, and money is what you can harvest from your capital. It's about knowledge and decisions: trading in-the-now pleasures for freedom over the long term.
21:20 - In Crisis Deluxe, Sebastian Nin starts a bond trading operation, but he lacks the capital over time.
Get Chris's first novel, Crisis Deluxe
https://www.crisisdeluxe.com