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Time Value of Money

Time Value of Money

June 23, 2020

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.