“Money today is worth more than money tomorrow”

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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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Anonymous 0 Comments

If you have money today you have two choices:

1. You can spend it today.
2. If you keep it, you have it tomorrow.

If you are getting money tomorrow, you only have that second choice (you can’t spend money you will get tomorrow, yet).

Therefore money you have today gives you something good, and that makes it more valuable.

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