“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 are impoverished and starving, money today can buy you some food and water and shelter, but you might die (from dehydration/hunger/exposure) if you only get the money tomorrow.

If you are investing in a business, the earlier you get some money, the more you can make form your business, because you can expand your operations sooner.

This applies whether it tools for your farm (from as little as your first wheelbarrow, or as much as upgrading an old tractor to a modern one), or buildign/upgrading a factory, or setting up a new store, or buying shares in a company doing those things.

If you are a government, generally the earlier you build your public works, the better.

A hospital today can start saving lives sooner. A train line today can start moving passengers sooner. If you have to wait for later to build those things, then your citizens miss out for the days/months/years that you wait.

So, rich or poor, personally or as a group, for private or public use, resources (or the money to buy them) now, is usually better than getting those resources later.

If the ideas I listed aren’t the best option to spend money today, then there is likely some other best option. And, you would like to have quick access to money when needed in case a good opportunity (or an expensive problem you need to fix) arises.

And, if there truly is no better option, then, most of the time, money today is at least no worse than money tomorrow.

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