Quailty counts

[Bugbear]

Well, there's an old saying, "You have to have money to make money", and there's a lot of truth in it.

One needs more income than expenses in order to have money to invest. Once an investment begins returning capital and interest, the person can expand their investment income by taking advantage of buying in bulk (for lower unit price), buying higher quality (lower cost over time, as your example shows), timing expenditures for optimal pricing (eg buying summer cloths before winter), etc.

These effects compound over time. And, we all know that Albert Einstein said, "the most powerful force in the universe is compound interest". Actually, he may have never said anything like that, but the effect of compounding must not be underestimated. Just ask your credit card company.

Here's Snopes on Einstein and compound interest.
http://www.snopes.com/quotes/einstein/interest.asp

Besides compound interest is a process, not a force.


There's a whole bunch of things people claim Einstein said that don't check out...

[thescot]

. . .There's a whole bunch of things people claim Einstein said that don't check out...

yeah, and Confuciius, and Shakespeare, and Yogi Berra. It kind of makes adds weight to something I say if I attribute it to someone important.

[madmacs]

yeah, and Confuciius, and Shakespeare, and Yogi Berra. It kind of makes adds weight to something I say if I attribute it to someone important.

"I'm smarter than the average bear!" Was one of his right?

[thescot]

"I'm smarter than the average bear!" Was one of his right?

Of course. Yogi Bear, that is. "Hey, Booboo want to find some pick-a-nick baskets?"

Ad then there is, "When a father gives to the son, both laugh. When the son gives to the father, both cry." I've heard it attributed to Shakespeare and to a Jjewish proverb, but no matter--it's true.