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 harry vance 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.

1. Of course, if you lose money, in a given year, it’s a very different story.
2. This economic philosophy doesn’t have a direct relationship with money management, but I thought it was interesting to note.
3. Also, a quotation from a famous person is often considered more interesting and entertaining.
4. Also, regulations free from corruption help guide capitalism so that opportunities are available for more citizens.
5. But it is not particularly easy for one to climb up out of the working class—especially if he is handicapped by the possession of ideals and illusions.
6. I early inquired the rate of interest on invested money, and worried my child’s brain into an understanding of the virtues and excellencies of that remarkable invention of man, compound interest.

Disdain for cult of personality

Quote investigator also found some earlier quotes claiming that compound interest is the “greatest invention”, but none of them involve Einstein in any way until well after his death. QI hypothesizes that an anonymous advertising copywriter initiated the idea that compound interest was the world’s greatest invention or man’s greatest invention. However, 1916 is not necessarily the origin of this hyperbolic statement, and future researchers may locate earlier citations.

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.

One reply on “Compound Interest Is Man’s Greatest Invention”

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 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.

Keep adding to the pot, and the compounding works even more in your favour. Social security is squarely how many years can you file back taxes 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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There is no question that Einstein enjoyed the personal freedom to succeed in the United States prepaid insurance definition journal entries 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 Europe. America provided the opportunity for any individual to succeed.

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.

Albert Einstein’s Philosophies For Growing Wealth

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).