Mahima Gupta Einstein might have more to offer today’s thinking saver than just compound interest. Whether he said these words or something similar is relevant only to purists who say serious journalists shouldn’t attribute quotes willy-nilly to emphasize their importance. It doesn’t change the fact that compound interest should be on the mind of anyone looking to build wealth over time.
The Importance of Investing Early to Earn Interest
- Because of individual freedom, cherished by Einstein, we are able to build wealth for ourselves.
- Now if Dad had invested it in the stock market and averaged 10 percent annually, June would be pocketing some real money – $69,586 – and could do a whole lot better than a dinner.
- At first, the amount of force and energy to create a snowball must be great.
- By doing this, you resist being greedy when everyone else is greedy, which results in losing your shirt.
Andrew has always believed that average investors have so much potential to build wealth, through the power of patience, a long-term mindset, and compound interest. Look, here are 10 fantastic quotes from influential people how to record a prepaid expense and what they have to say about compounding interest. If you’ve been reading all the way through, you’re already better than 90% of the world.
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. It saddens me to see such disregard for the future. Everyday, we have people who live in a mindset of scarcity instead of abundance. This isn’t the world I want my daughter to grow up in. The kind of time that young people have today to compound their investments makes old hedge fund cats salivate.
In some countries, if our parents were poor servants, we’d be poor servants, too, without any economic mobility. There is no question that Einstein enjoyed the personal freedom to succeed in the United States afforded by the country’s capitalist underpinnings. He might have; the sentiment matches what seems to be this particular genius’s sense of humor. Despite his initial problems with the regimented style of school, Einstein strongly valued the cognitive skills he gained from his later studies. He cited a good college education with providing the type of cognitive skills that allows people to think for themselves and imagine possibilities that have never been imagined. “The value of a college education is not the learning of many facts but the training of the mind to think,” Einstein was quoted in the New York Times in 1921.
People who understand compounding interest.
While everybody might know that interest is bad, only a few people decide to do something about it. And if I can be quite frank, it’s why broke people are broke and rich people are rich. It’s so effective because not only does it teach you discipline and good habits, but it prevents you from making stupid mistakes in the stock market.
How long will it take to double your money at 2% interest?
FYI – Robbins’ exact line was “Compound interest is such a powerful tool that Albert Einstein once called it the most important invention in all of human history.” In personal finance articles I frequently find quotes injected to attribute some further relevance to one’s position. But what if Dad were nearly as good an investor as Warren Buffet who averaged a 21.5 percent annualized return?
One reply on “Compound Interest Is Man’s Greatest Invention”
Salespeople can cleverly disguise themselves as advisers, and skepticism helps protect people from making poor financial decisions. In 1916 a character in an advertisement in a California newspaper called “compound interest” the “greatest invention the world has ever produced”. Einstein didn’t learn about special relativity in school.
Your guess at what it’s going to do next is as good as the next guy’s. Until you find someone that can predict the future, you’re just going to have to face the fact that you won’t be able to time the market. Rich people don’t have any bigger advantage in the market than poor people do. My $500 in the market has just as much of a chance at making 10% returns as George Soro’s $500 million.