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. QI was unable to find any support for the attachment to Einstein, and QI believes that it is very unlikely that Einstein made this remark. Nobody makes a real fortune overnight, and nobody goes broke in one night either. The exceptions to the rule regress back to where they should be over time. That’s why lottery winners oftentimes end up broke years later.

For Einstein, advanced education is not job training, but training to perform at high levels in any situation, job or otherwise. how to calculate direct labor cost This agrees with my view on education, with its worth being measured in more than just financial return on investment. 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? He clearly sees the importance of cognitive ability and education for growing human capital, which has a positive effect on options for long-term wealth. Albert Einstein is said to have called “the power of compound interest the most powerful force in the universe.” The story in this posting will illustrate the power far better than I ever could in theory.

In Tony Robbins recent tome (600 pages to write what would fit in a short magazine article) he offered this Einstein line. I’d like to know if it was made up or if Einstein ever said anything close to this.

Compounding interest separates the rich from the broke.

At a 2% interest rate, it would take 36 years to double your money. At a 12% interest rate, it would only take six years to double your money. For savers, it means earning interest on your original principal—plus on the interest your investment generates. Compound interest is sometimes described as “interest on interest” because earned interest essentially gets added to the principal over time.

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The work you need to do in the beginning is often very painful and tiring. But once your wealth snowball is built, then your wealth naturally attracts more wealth. Then the power of compounding interest can work in your favor. Every great force you see in our world didn’t always begin that way.

1. 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.
2. I’d like to know if it was made up or if Einstein ever said anything close to this.
3. Also, regulations free from corruption help guide capitalism so that opportunities are available for more citizens.
4. That’s why you must employ a system like Dollar Cost Averaging.
5. If you want more wealth and abundance in this world, be the change.

Compounding interest is your friend if you are poor.

But what if we saved just a little bit for them. When’s the last time you saw a high interest credit card balance move much lower after making a payment? When you get into high interest debt, you are now fighting against the inevitable force of compounding interest. Compounding interest is best pursued when you are dollar cost averaging.

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The label “eight wonder” was applied to compound interest in an advertisement for a bank in 1925. No attribution was provided, and anonymous advertising copy writers have applied the “eight wonder” label to a wide variety of objects and ideas for more than two hundred years. QI has found no substantive evidence that Albert Einstein, Baron Rothschild, or John D. Rockefeller employed the saying. There’s often a trend to follow the herd — to buy stocks when it seems like everyone is buying and to sell stocks when it seems like everyone else is selling. Being a non-conformist, investing against the grain, can help investors buy low and sell high. That’s the only way to be profitable in the stock market.

His breakthrough in the understanding of the physical universe came from his ability to imagine how the world might work, and then ask himself questions and solve problems to determine which theories could be tested. For the most part, he let other scientists worry about the testing part, giving himself room for his thoughts to consider the world in ways no one had considered it previously. 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.