Time Value of Money | By Wall Street Survivor

If you invest your money then, over time, the value of your money increases if you earn a positive return. Likewise, $1000 in 3 years is not the same thing as $1000 today or $1000 in 30 years. This video will help you understand the time value of money.

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[Burhansyla]

A dollar today is worth more than a dollar tomorrow. : 0:13

[joachimlarsen]

You just forget to factor in that at the moment the interest you get in banks is lower then the inflation. That means that for example the prices rises 2% but you only get 1% interest and the therefor your money became 1% less worth.

[ViDesignStudios]

5% is an old dream, now the national average of interest on savings accounts is only 0.08 percent. Inflation rises around 6% per year, so with your MagicBank she would stay at neutral by waiting a year. She should take it upfront, pay off any debts first (interest on debt + 6% inflation = true loss), then invest the rest in microloans. Or buy an island in a country with less inflation.