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.

The Eighth Wonder Of the World – Uninterrupted Compounding Interest

Moving to the United States and becoming a citizen of the country was important to Einstein. 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. Albert Einstein was arguably one of the most brilliant thinkers in the twentieth century.

1. Many homeowners who have struggled to meet their mortgages month after month, only to find after years of making payments that most of their money has gone to cover interest charges, have felt like cursing whoever came up with the concept of compound interest.
2. Because of individual freedom, cherished by Einstein, we are able to build wealth for ourselves.
3. Also, a quotation from a famous person is often considered more interesting and entertaining.
4. America provided the opportunity for any individual to succeed.

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It doesn’t change the fact that compound interest should be on the mind of anyone looking to build wealth over time. He might have; the sentiment matches what seems to be this particular genius’s sense of humor. Many homeowners who have struggled to meet their mortgages month after month, only to find after years of making payments that most of their money has gone to cover interest charges, have felt like cursing whoever came up with the concept of compound interest.

As long as you follow the process we teach and learn how to regain control of your banking, your money can grow as I’ve just described while simultaneously working for you in your life, helping you build, keep, and create more wealth. This economic philosophy doesn’t have a direct tax calculator return and refund estimator 2020 relationship with money management, but I thought it was interesting to note. Because of individual freedom, cherished by Einstein, we are able to build wealth for ourselves. In some countries, if our parents were poor servants, we’d be poor servants, too, without any economic mobility. 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.

Albert Einstein – Compound interest

For Einstein, advanced education is not job training, but training to perform at high levels in any situation, job or otherwise. 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 this new ‘wave’ button is catching out facebook stalkers and it’s making them angry a positive effect on options for long-term wealth. Despite his initial problems with the regimented style of school, Einstein strongly valued the cognitive skills he gained from his later studies.

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. But for at least those reading Consumerism Commentary, there should be enough opportunity to move towards financial independence. With this philosophy, Einstein would have embraced frugality. Despite his world travels and, especially later in his life, his ability to command top salaries and fees, he maintained modest living environments. Social security is squarely based on what has been called the eighth wonder of the world—compound interest. 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.

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. A. Michael Lipper, president of Lipper Analytical Securities Corp., quotes Albert Einstein’s remark that “The eighth wonder of the world is compound interest.” If you can invest at a sure 7 percent return, your money will double in 10 years. If you are patient, and stick with your investments over time, you will almost always come out ahead. Upon closer inspection, it’s apparent Gates had merely rephrased Einstein’s above-mentioned insight. After all, Gates’ so-called law merely dusts off Nature’s age-old law of growth.

Did Albert Einstein declare compound interest to be ‘the most powerful force in the universe’?

Compound interest is the most powerful force in the universe. 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.

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. 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 what is the difference in meaning between cost and price or experts. Salespeople can cleverly disguise themselves as advisers, and skepticism helps protect people from making poor financial decisions.