Saturday, March 13, 2010, AM | 3 Comments
Albert Einstein, as we all know, was one of the greatest minds of the 20th century. To some, he was one of the greatest minds of all times. His many theories have been proven one after the other by human observation. Einstein received the 1921 Nobel Prize in Physics for his services to theoretical physics. I never understood what has been attributed to him for the lack of my understanding of physics and math.
However, he did talk in the language that we ordinary folks might understand and some talk or advice to act on. No physics, no math., no nothing. Just plain talk. Many quotes have come out from his scientific mind and in turn from his mouth that today we can apply to the discussion of our subject matter – personal finance.
“I never think of the future – it comes soon enough”
Of course, the future comes soon enough. However, in finance, you have to think about your future, your kids’ college, your retirement. In order to make your financial plans for the future, I get the impression Einstein said you have to act now. Once you laid out your financial plan and started acting on it, don’t think about it then. Don’t lose your sleep over it. Once or twice a year, revisit the plan.
“I have no special talent. I am only passionately curious”
Very few people have special talent. That’s why it has been advised by many other wise men to have a mentor to get you through the darkness of life. What you need are good and special credit, debt and financial advisers in each of these categories.
“Any man who can drive safely while kissing a pretty girl is simply not giving the kiss the attention it deserves”
Set your financial priorities straight. Concentrate on something that you can achieve. Stay away from tasks that you could be wasting your time on.
“It’s not that I’m so smart; it’s just that I stay with problems longer”
Don’t give up. Always seek help from family and friends. Stay on top of your financial problems. Don’t try to keep up with the Jones’. Nobody can anyway.
“A person who never made a mistake never tried anything new”
Tell me about it. Einstein probably said that about me and millions and billions like me. Was it a mistake to buy into the stock market before 2008? No it was not a mistake. But it definitely was a mistake to sit in the lotus position and not be aware that I could sell before the market started to come down.
“Imagination is everything. It is the preview of life’s coming attractions. Imagination is more important than knowledge”
Of course. How true! It used to be that in previous life – in the 50s and 60s, you just had an account in the bank. You would buy into AT&T and sit in the lotus position with your hands in your lap. Now there are so many financial options available to you. Be smart and be active. Learn what’s out there and take advantage of it for your own good.
“Strive not to be a success, but rather to be of value”
What’s success? For most, if you are financially successful, then you have achieved success in life. That is one success. There are other kinds of successes as well. To help the needy with your finances is one great success.
“Insanity: doing the same thing over and over again and expecting different results”
That could be a reason for so many divorces in the States. You do the same thing over and over with one spouse. You get tired and bored. Is Einstein telling us to find other mates and leave the one we have lived with for more than quarter of a century? I am just kidding. I don’t think he meant that. Of course, he didn’t.
“Information is not knowledge. The only source of knowledge is experience”
I get the impression that financial information can be transferred but not knowledge. You have to gain knowledge from financial information you get almost on a daily basis. Knowledge can be gained only through doing things. No matter how many books I read about auto maintenance and repair, I cannot be a good mechanic until I try the things I have collected information on.
“You have to learn the rules of the game. And then you have to play better than anyone else”
In finances, there is nothing but rules. You have to learn the basics of it and then try out some of the things you learned to gain some knowledge about the subject matter which is personal finance. Of course, there are very many people who don’t play by the rules. They think they would outsmart the finances of the world with being just crooks. Look at what Sue baby was involved in and Madoff tried so many years but he could not outsmart the law.
In a Nutshell
Like I said, Einstein was one of the greatest scientific minds of all times. But he actual talked like us humans. And that’s the only way we can talk to others – like humans and consider all others as humans as well regardless of anything else.