I get that the value of money depreciates over time hence why they tell you that the best time to invest is now. But i don’t get how exactly investing now helps you in the future if the cost of living increases with time too anyway. So like let’s say you invested $1000 today and then in the future that’s equivalent to $4250, but then the price of things have also increased so how much richer are you really if you have to spend a lot more in the future anyway?
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If today you had the option to buy a can of Pepsi for $1, but chose instead to put that dollar in a piggy bank, then in 10 years, you’ll open your piggy bank and have one dollar, but now a can of Pepsi costs $3. Your money has lost value.
If you chose not to buy a can of Pepsi for $1 and instead put that $1 into one stock share of Microsoft, then maybe in 10 years, that can of Pepsi will be $3, but your stock is now worth $5. In that case you made money. OR maybe that stock is only worth $1.50. In that case you lost. Or your stock is now worth zero. That’s the gamble.
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