Albert Einstein was one of physics (and probably history's) foremost geniuses. His vision of how the universe operates was at once incredibly insightful and simple. Einstein left us with many quotes that seem to fit like a hand in glove with how to view your finances for optimal results.
Albert Einstein was a quote factory during his lifetime, in part due to the sheer enormity of the contributions he made to our collective understanding of physics, as well as his self-deprecating manner. Einstein was a rare breed of extreme intelligence coupled with common sense. His down to earth quotes may just be the inspiration you need to re-evaluate your personal finances and make adjustments to help improve your bottom line.
You May Be Your Own Worst Enemy
Everyone makes financial mistakes once in a while. You might have one too many lunches out a restaurant, or you may succumb to the impulse of a purchase for something you don't need while waiting in line at the grocery store.
If you know those purchases are wrong and don't align to your budget or values, then repeating those financial mistakes is pretty stupid. If you go out to lunch at a restaurant and decide its the wrong financial decision for you, logically you should brown bag it next time; not repeat the same mistake again when tomorrow you inevitably get hungry at around noon.
Where things really break down is in the case of a monthly recurring payment you make automatically for a service that you know is either wrong for you or where you are getting gauged. Subscribing to a service you don't need is infinite financial stupidity.
If you have infinite financial stupidity, you may be your own worst enemy.
Even Financial Prudence Has Limits
Often saving money is less a sure thing and more a trade off. If you save aggressively you may be avoiding spending your money on things you really ought to be spending it on. When you fail to spend your money on things you need, you typically take on risks you may not realize.
Consider your car's tires. They're boring, and neither will anyone compliment you on your new tires nor will you really notice much of a difference once you have the new ones installed. But saving money by not replacing your car's tires means you are taking on risks greater than you realize. Your tires wear out over time, and if they fail while you are in a dangerous position on the road, you may be putting yourself and others at risk of harm to a greater degree than you realize.
You money and its impact needs be applied with a broad vision. It is not enough to have tunnel vision for savings without considering the trade offs that focus is having on other areas of your life.
No One Ever Actually Gets Rich Quick
Everyone wants a shortcut to wealth. If you think about it, if such a thing existed in a nice repeatable pattern, everyone would do it. Unfortunately, one of the better get rich quick schemes appears to be selling suckers on the notion that they can implement a paid-for service and get rich quick themselves. Sadly, after the sucker pays, they stay poor.
Wealth building should be simple, but that simplicity should be based on savings and hard work. The notion of building wealth should be based on budgeting a reasonable amount to save, investing in a vehicle such as an index fund which mirrors the performance of major indexes such as the Dow Jones or S&P 500, and regularly contributing to a growing savings amount over time.
Trying to find that shortcut that avoids discipline, or locates some stock market inefficiency that somehow millions of other hard-core investors have overlooked is akin to trying to build wealth more simply than possible.
Do you have a favorite Albert Einstein quote that provides you with inspiration in your personal financial planning? What changes did you implement in your financial life as a result of an Albert Einstein quote?
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