Investors can earn a return on the money they have today and thereby have more money in the future.
What is the main reason that a dollar today is worth more than a dollar tomorrow?
- Money today is worth more than tomorrow because of inflation (on the side that's unfortunate for you) and compound interest (the side you can make work for you).
- Inflation increases prices over time, which means that each dollar you own today will buy more in the present time than it will in the future.
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