Spreading joy through writing and breathwork https://www.somabreath.com/#a_aid=AndyMurphy
Nov 13, 2022 (Medium.com)
His relationship with money wasn’t always easy but like most things in life, he came to understand how it worked (and his fortune today proves it)
Einstein had a difficult relationship with money, one that brought him out of the mystical and spiritual realms and into the material and capitalist ones.
He struggled in that regard because his philosophy was more aligned with things like:
“Try not to become a man of success, but rather become a man of value”
And:
“Only a life lived for others is a life worthwhile.”
Perhaps that’s why he said: “I refuse to make money out of my science. My laurel is not for sale like so many bales of cotton.”
Now, for what he contributed to the world, Einstein should have been one of the wealthiest people ever to have lived. Yet, at the time of his death in 1955, his net worth amassed to a total of $65,000 which isn’t a helluva lot to write home about.
Having said that, however, he still lived a fabulous life. One where he could ponder the mysteries of the universe until his heart was content, play his beloved violin Lena, enjoy the rapture of being a father, swim, dance, and ride his bicycle, listen to Beethoven and Bach with a childlike wonder, and occasionally let his in-house chef know that “I am not a tiger” after becoming a vegetarian in his later years.
The mere fact that he had an in-house chef reveals that he lived a certain luxurious existence.
However, even with his seeming lack of interest in the matter, he did come to understand money like pretty much everything else he turned his attention to.
And although he barely spoke about it, the one time he did it was truly enlightening.
Here’s what he had to say:
“Compound interest is the eighth wonder of the world. He who understands it, earns it … he who doesn’t … pays it.”
Nothing highlights this more than his own wealth because today his net worth of $65,000 is now a whopping $12 million.
His patents and publications on well-known theories have been building compound interest for 75 years now and they are behind his slow and steady growth.
Clear Wealth Asset provides a brilliant insight into how it all works:
“Let me give you an interesting example: if I were to offer you the choice between an immediate cash payment of one million dollars or a magic penny that doubled every day for 30 days, which one would you take?
Now, if you are like most people, at first you might jump on the million dollar deal. But if you break out your calculator and double one penny for 30 days you will be amazed that on day 30 your penny would be worth over $5,000,000.”
That’s compound interest, baby. And Einstein knew the value of it.
A quick word of warning
One of the reasons why Einstein didn’t give particular attention to money was because he saw its destructive nature.
The people he admired most, after all, were those who embodied value and not success.
It was people who found wonder and awe in the mysteries of life and not in the material gains they could earn.
His idols were people like Jesus, Moses, Mohammed, Gandhi, and the like. And none of them exactly pop to mind when thinking about money.
So, in honour of balance, here’s a word a warning from the man himself:
“I am absolutely convinced that no wealth in the world can help humanity forward, even in the hands of the most devoted worker in this cause. The example of great and pure individuals is the only thing that can lead us to noble thoughts and deeds.
Money only appeals to selfishness and always tempts its owners irresistibly to abuse it. Can anyone imagine Moses, Jesus, or Gandhi armed with the money-bags of Carnegie?” — Albert Einstein
From monetary value to self-worth
James Clear provides us with a beautiful example of how compound interest works for self-development.
He’s what he has to say:
“Often we convince ourselves that change is only meaningful if there is some large, visible outcome associated with it. Whether it is losing weight, building a business, traveling the world or any other goal, we often put pressure on ourselves to make some earth-shattering improvement that everyone will talk about.
Meanwhile, improving by just 1 percent isn’t notable (and sometimes it isn’t even noticeable). But it can be just as meaningful, especially in the long run.”
Here’s a graph he put together to highlight his point.
So, here’s the key take home:
“If you get one percent better each day for one year, you’ll end up thirty-seven times better by the time you’re done.” — James Clear
To break it down even further, say you’re awake for 12 hours a day, 1% of 12 hours is 20 minutes.
So, setting aside just 20 minutes a day has the potential to make significant gains!
For me, that looks like doing my favourite breathwork practice every day. But find your way, double down on taking tiny steps forward, and compound interest the shit out of yourself 🙂
Your future self will hi-five you when you get there.