Time Value of Money – What Does That Mean?

It’s the idea that having a dollar today is worth more than having a dollar in the future. That’s because the dollar you have today can buy something today or earn interest while the dollar you don’t have can’t be spent or earn interest until you get it in the future.

Let say you have a choice between a promise to receive $1,000 in 10 years or to take $1,000 today – wouldn’t you definitely choose the $1,000 now? That’s because you can either spend it or invest it. If you spend it now it will buy more than the same $1,000 in 10 years because inflation makes things cost more. If you invest it, you’ll have the earnings during the next 10 years you’d be waiting.

Another way of looking at it is how much would you pay someone today for them to give you $10,000 in 10 years? You wouldn’t pay them the whole $10,000 today would you? You’d pay less than that because tying up your money for ten years means you can’t use it or invest it.

Writing includes a mind boggling procedure of pre-writing, drafting or making, and amending and altering. Here are exercises that spread the phases of the writing procedure. As indicated by Toby Fulwiler, in his book Writing Across the Disciplines: This supposition, the thought that writing is a procedure, “something which shows constant change in time like development in natural nature” (McCrimmon 4), is immediately commonplace and unfamiliar to instructors in disciplines other than English. Well-known australian writings services, on the grounds that, as journalists of articles, proposition and books, school instructors battle with “process” each time they do a bit of writing; outside, in light of the fact that these equivalent educators regularly require single-draft writing as research projects and paper tests from their very own students. At the writing workshop instructors are approached to take part in practices which reacquaint them with the dissatisfactions (and delights) of the forming procedure: . . . Prewriting, writing, reacting and amending, brought to cognizance through gathering exchange, underline unmistakably the procedure associated with producing a genuine bit of open exposition. Writing to learn includes giving students numerous chances to clarify things for themselves; thinking on paper; learning as revelation; writing as a method for generalizing thought. Students need the chance to investigate their thoughts in writing to participate in basic speculation before the last writing item is expected. En route, scholars need to ask themselves, “How would I realize what I think until I state what I mean?”

That’s the idea of the value of money over time. Having it in your hand now is worth more than the promise of having it in the future. The exact difference in how much more it’s worth today depends on how long you’d have to wait, what you can do with the money now and the interest rates used to calculate the investment.

What Does It Mean To Me?

If you’re going to receive money in the future from a structured settlement, lottery winning or annuity, having that money to use now may be more valuable to you than waiting to get it in the future. If you’re wondering what your future money is worth today, speak with one of our experts for expert care and attention at 1-866-256-0088. Or fill out the quote form on this page.

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