Human Angle - Understanding the Time Value of Money
One of the most important topics in finance, whether personal or institutional, is the fundamental concept of the "time value of money".
Simply stated, an amount of money now is worth more than the same amount of money later, because between now and later you can use this money to make more.
The second most important overall concept to grasp in personal finance is that, while aspects of your finances are shared by many others, your own overall personal financial situation is unique for all intents and purposes and you should not make financial decisions, especially purchasing decisions, just because other people made the same decision.
The "Time Value of Money" is one of the most important concepts in economics, investing, and business. For individuals, it determines how much you save and spend, for businesses, and determines how quickly they try to expand and for investors, it decides the mix of a portfolio.
This edition of the Human Angle anchored by Taiwo Adeoti discusses the time value of money.