Would you rather receive $1,000 today or receive $1,000 a year from now? The answer seems pretty obvious – almost everybody would take $1,000 today. But would you rather receive $1,000 today or receive $1,100 a year from now? By just slightly changing the question, the answer isn’t quite as clear. If you asked a group of people, you’d likely receive a mixed response. Why was the first question so simple, and the second question so complicated? Time value is the concept that a dollar today is not necessarily worth the same as a dollar tomorrow (or a month, year or decade from now). In most cases, a dollar received today is actually worth more than a dollar received in the future. But why is that the case? The main principal is that money received today can be invested to earn income sooner than money received in the future. Seems obvious, but the implications are huge are far reaching. If you make a one-time investment of $1,000 in the stock market today and the market is returning 7% per year, then one year from now you’ll have $1,070. Two years from now you’ll have $1,145. Ten years from now you’ll have $1,967. Twenty-five years from now you’ll have $5,427. And fifty years from now you’ll have $29,457. Because of compounding interest (interest being earned on interest), the initial investment grows exponentially over time. ---------------------------------------------------- Double tap if you like this❤️ ---------------------------------------------------- 🗣️Leave your Thoughts below ---------------------------------------------------- Like our content? Hit that follow button!⬇️👍 💎 @business_dreams_ 💎 @business_dreams_ 💎 @business_dreams_ ---------------------------------------------------- Follow us on Facebook @business_dreams_ ---------------------------------------------------- #business_dreams_ #compoundinterest #habitofsuccess #everythingisfigureoutable #the_success_yard #compoundeffect #motivationalcontent #winnermindset #fullfilyourdreams #jimrohnquotes https://www.instagram.com/p/CDNyLOVHrl2/?igshid=vq3081lpsyqp