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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It’s not a cookie cutter where one size fits all. In general, either use money now or invest it for the future – don’t let your money sit in the bank.
ELI5. Think of money as ice cubes. If you’re gonna take it out of the freezer, then you should eat/drink it or else it’ll melt and be useless. If you take money and put it in your checking account, it’ll depreciate and be worth less. If you put the ice cubes from the freezer to the fridge, it’ll still melt but it’ll take longer, this is the savings account.
So either use the money (I e. Ice) or put it in the freezer (invest it in stocks or something that appreciates in value).
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