“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

I think (don’t know a lot about this), but the big investments are to make money, but there are little investments just to keep the value of your money. So yes, let’s say food today was 100$ and tomorrow is 110$. You would want to invest your 200$ today so tomorrow you have 220$ or 230$, to keep your ability to buy stuff. That’s why is better to invest, even at low rates, than keep money “in a drawer”, because your ability to buy stuff will decrease with time.

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