Talking with older business owners or retired investors can teach you a lot about understanding the time value of money and understanding risk-taking.
What is time value of money❓ 🤔
Simply put – time value of money means a #dollar today is worth more than the same exact #dollar you would take in the future.
You have to earn interest on your money to be worth taking any risks. For certain risks you will have a higher probability of something going wrong, and thus you should be paid even more.
This is the concept of time value of money 🕘
As you talk with people who have had success over many years – you tend to find 2 things to be continually brought up in your conversations.
- We wish we would have had started earlier or had more time investing or running our business.
- We wish we would have taken on more calculated risks.
Not many successful people look back at life and wish they had done less.