The Eighth Wonder Of the World Uninterrupted Compounding 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. Nature has successfully run her business of life for some 3.4 billion years now, after all. And as Einstein notes, if you observe Mother Nature at work, it’s apparent she’s mastered the art of simplicity. In short, the power of compounding reflects reaping huge rewards from sowing a series of tiny, small choices.

Albert Einstein > Quotes > Quotable Quote

For instance, consider our oldest infinite banking policy, which will turn 15 years wisenet wave old in early 2024. When we deposit a $1 premium into our Kesler Bank, we can take out a loan for $2.42. Another member of our team has a similar policy where every $1 he puts in allows him to take out a loan for $6.50. Our “money machines” are generating wealth, and there’s no risk involved.

1. 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.
2. The Educated Shetland Pony, or the Pony With the Human Brain.
3. The question is, will you heed Einstein’s wisdom and seek the answer right in front of you, or will you dismiss this as too good to be true?
4. And from a consumer perspective, we have to resist the temptation to consider salespeople authority figures or experts.

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I’d like to know if it was made up or if Einstein ever said anything close to this. Stack Exchange network consists of 183 Q&A communities including Stack Overflow, the largest, most trusted online community for developers to learn, share their knowledge, and build their careers. We suspect that this perspective on the power of compound interest is a fairly modern invention, one which has been retroactively placed into the mouth of a prominent dead person to give it more punch.

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. It seems Einstein would not be too happy with the way people revere the most popular financial gurus.

If Columbus had of placed one single dollar out at 6% interest compounded annually with instructions to pay the proceeds to you today, you would have over Ten Billion Dollars coming to you. 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. Essays on ideas, spirituality, philosophy, science, culture and society. Instead, by a series of baby steps — day by day  —  she slowly grows the seed… The question is, will you heed Einstein’s roles and responsibilities of a company shareholder wisdom and seek the answer right in front of you, or will you dismiss this as too good to be true?

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Amid the booming of cannon, the shrill whistling of a thousand steamers and the plaudits of great masses of citizens the Brooklyn Bridge . Over the years, I’ve read debt restructuring and sovereign bankruptcy Einstein quoted as saying that ‘compound interest was one of man’s greatest inventions’, or other variations on this theme. In Tony Robbins recent tome (600 pages to write what would fit in a short magazine article) he offered this Einstein line.

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. 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.

“Ahh, so compound interest is almost like an invisible force?” he asked. 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. 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. I lived on a ranch in California, and I was hard put to find the ladder whereby to climb. 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.

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. 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.