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It's totally cool if you want to argue what you're arguing about the value of investing early to unlock long term compounding gains but... don't call it the tim

It's totally cool if you want to argue what you're arguing about the value of investing early to unlock long term compounding gains but... don't call it the time value of money. Time value of money means something different than what you're arguing.

scarface_74 2y ago
https://www.investopedia.com/terms/t/timevalueofmoney.asp https://www.investopedia.com/terms/t/timevalueofmoney.asp The time value of money (TVM) surmises that money is worth more now than at a future date based on its earning potential. Because money can grow when invested, any delay is a lost opportunity for growth. The time value of money is a core financial principle known as the present discounted value.
- liontwist 2y ago
  I asked ChatGPT to explain why money has time value without referring to making other money (circular). I think this is a good description which represents my view. Notice that these are true regardless of the existence of central banking: Opportunity Costs of Waiting: Money available now can be used to address immediate needs or desires—buying goods, accessing services, or achieving goals. If that money is delayed, those opportunities may be lost, diminished, or deferred, reducing its practical utility. Uncertainty Over Time: The future is uncertain, and there is a risk that the purchasing power or usefulness of money might change due to factors like inflation, changes in circumstances, or unforeseen events. Money available now provides a guarantee of utility that might not exist in the future. Personal Preference for Timing: People often value immediate access to money because it aligns with their current priorities. For example, having money now could allow someone to travel, invest in education, or address urgent health needs—opportunities that may not hold the same relevance or availability later.
  - scarface_74 2y ago
    And even if you ask it straight out. It jibes with my definition as well as does the investopedia. https://chatgpt.com/share/678ee649-6e30-8010-b16b-d152ac228df0 https://chatgpt.com/share/678ee649-6e30-8010-b16b-d152ac228d...

scarface_74 2y ago

https://www.investopedia.com/terms/t/timevalueofmoney.asp https://www.investopedia.com/terms/t/timevalueofmoney.asp The time value of money (TVM) surmises that money is worth more now than at a future date based on its earning potential. Because money can grow when invested, any delay is a lost opportunity for growth. The time value of money is a core financial principle known as the present discounted value.

liontwist 2y ago
I asked ChatGPT to explain why money has time value without referring to making other money (circular). I think this is a good description which represents my view. Notice that these are true regardless of the existence of central banking: Opportunity Costs of Waiting: Money available now can be used to address immediate needs or desires—buying goods, accessing services, or achieving goals. If that money is delayed, those opportunities may be lost, diminished, or deferred, reducing its practical utility. Uncertainty Over Time: The future is uncertain, and there is a risk that the purchasing power or usefulness of money might change due to factors like inflation, changes in circumstances, or unforeseen events. Money available now provides a guarantee of utility that might not exist in the future. Personal Preference for Timing: People often value immediate access to money because it aligns with their current priorities. For example, having money now could allow someone to travel, invest in education, or address urgent health needs—opportunities that may not hold the same relevance or availability later.
- scarface_74 2y ago
  And even if you ask it straight out. It jibes with my definition as well as does the investopedia. https://chatgpt.com/share/678ee649-6e30-8010-b16b-d152ac228df0 https://chatgpt.com/share/678ee649-6e30-8010-b16b-d152ac228d...