Today, Matt Halloran and Justin Bennett discuss an important economic concept called time value of money. Time value of money refers to the highest net rate of return available to an individual, family, or business. Whenever you spend a dollar somewhere, you’ve relinquished not only that dollar, but any interest it would have earned going forward. In other words, time value of money represents an opportunity cost when money is spent today instead of saved for tomorrow.
Tune in and learn why it’s important to consider time value of money as you make important financial decisions.