It seems Einstein would not be too happy with the way people revere the most popular financial gurus. Fans of gurus will continue to stand up for their heroes despite displays of lack of character and lack of sense. Fans are invested in their heroes; to admit their guru isn’t perfect is to admit they wasted time, money, and energy. A superfan perceives an attack on Robert Kioysaki’s business practices or a criticism of his sales techniques as an attack on the man and his following. A criticism of Dave Ramsey’s approach to financial advice is dismissed without consideration; after all, he’s the successful author.
Authority figures, like professors who lecture without open discussion and politicians, don’t always deserve to be trusted. And from a consumer perspective, we have to resist the temptation to consider salespeople authority figures or experts. Salespeople can cleverly disguise themselves as advisers, and skepticism helps protect people from making poor financial decisions. Compound interest has essentially tripled (x2.65) your investment (principal).
He didn’t like the militaristic nature of his schools, where pupils were not encouraged to ask questions, and learning was affected through rote memorization. The young Einstein had no interest in this type of training to blindly worship authority. He believed that humans were given brains so they could do much more than trust received knowledge unquestioningly. Albert Einstein was arguably one of the most brilliant thinkers in the twentieth century. Although being a genius in one genre doesn’t guarantee illumination is all other areas of thought, observers can adapt Einstein’s philosophies of life and his personality traits into better approaches to money management and life in general. Einstein might have more to offer today’s thinking saver than just compound interest.
Keep adding to the pot, and the compounding works even more in your favour. Social security is squarely based on what has been called the eighth wonder of the world—compound interest. A growing nation is the greatest Ponzi game ever contrived.
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I early inquired the rate of interest on invested money, and worried my child’s brain into real estate bookkeeping an understanding of the virtues and excellencies of that remarkable invention of man, compound interest. What we can appreciate from Einstein’s philosophy is that society is as important as the individual, and individuals, particularly those who are successful, can help society to a greater extent without sacrificing their success. Also, regulations free from corruption help guide capitalism so that opportunities are available for more citizens. To really benefit from compounding you also need to keep fees and taxes to a minimum.
One reply on “Compound Interest Is Man’s Greatest Invention”
The Educated Shetland Pony, or the Pony With the Human Brain. He does more work in less time, with more ease and grace than any other living pony. He will add; subtract, multiply, spell words, pick out colors. The Eighth Wonder of the World—eighth in point of time, but first in point of significance was today dedicated to the use of the People. Amid the booming of cannon, the shrill whistling of a thousand steamers and the plaudits of great masses of citizens the Brooklyn Bridge . Apparently the economist Keynes was not quite as enamored as others because he only ranked compound interest second in the pantheon of inventions.
Albert Einstein definitely leaned towards the socialist end of the economic spectrum, but he always emphasized the important of individual freedom, democracy, and personal liberty. He was not a fan of communism in Russia, nor was he a supporter of German fascism or nationalism. The United States was politically the best environment for him, particularly with his belief that art and science relied on the availability and encouragement of individualism.
Albert Einstein > Quotes > Quotable Quote
QI has not yet located any support for this claim about Keynes.
- It may be difficult, but financial independence is within reach for anyone who wants it although there can be unavoidable external situations making it more difficult or impossible for some.
- Would Einstein feel the same way now, with a college education costing several multiples more than it did in his time, even after taking inflation into account?
- It seems Einstein would not be too happy with the way people revere the most popular financial gurus.
There is no question that Einstein enjoyed the personal freedom to succeed in the United States afforded by the country’s capitalist underpinnings. Moving to the United States and becoming a citizen of the country was important to Einstein. He saw this nation as a place of freedom and tolerance. He loved the idea that he and others could question authority without fear of reprisal. Einstein also enjoyed the lack of a class system as was prevalent throughout promissory note definition types and history Europe. America provided the opportunity for any individual to succeed.
In some countries, if our parents were poor servants, we’d be poor servants, too, without any economic mobility. QI hypothesizes that the statement was crafted by an unknown advertising copy writer. Over the years it has been rate of return calculator reassigned to famous people to make the comment sound more impressive and to encourage individuals to open bank accounts or purchase interest-bearing securities. Sometimes a comment is attributed to a famous individual to increase the prestige and believability of the comment. Also, a quotation from a famous person is often considered more interesting and entertaining.