The Time Value of Money (Explained)

The Time Value of Money is an important concept in the world of finance and investing.

The Time Value of Money states that $1 today is worth more than $1 in the future, due to its potential earning capacity.

Once people truly understand the power of compound interest, discounting future cash flows, and understand present value of an investment, they will start to look at money differently.

I first learned this concept when I was a freshman taking my first finance classes. I never really thought about money this way, or its ability to grow until I was basically 19 years old.

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ABOUT ME 👇

My mission is to provide my viewers with actionable content that enables them to create financial wealth. My videos are a reflection of my real-world experience as a real estate investor, stock market investor, student of finance, and entrepreneur.

This channel allows me to share my passion for personal finance, stock market investing, real estate investing, and entrepreneurship. I produce content that I would want to watch, and because of that, I give 100% effort in every video that I make. I also believe in complete transparency and open communication with my audience.

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DISCLAIMER: I am not a financial adviser. These videos are for educational purposes only. Investing of any kind involves risk. While it is possible to minimize risk, your investments are solely your responsibility. It is imperative that you conduct your own research. I am merely sharing my opinion with no guarantee of gains or losses on investments.

AFFILIATE DISCLOSURE: Some of the links on this channel are affiliate links, meaning, at NO additional cost to you, I may earn a commission if you click through and make a purchase and/or subscribe. However, this does not impact my opinion.

[WhiteBoardFinance]

*What's up WhiteBoardNation! Check out the free investing guide in the video description above! It will be ready in a few days :)*

[JustinHouser]

This brought me back to my finance/accounting course in college. BUT, you taught something in 10min that took the teachers 6 weeks and $2, 500 later 😔 and did it better 🤙

[vusiselani]

I'm South African, I love the wisdom that comes with your teachings. 🕦👑🎖

[investwithshaun]

Time is the best friend of a long term investor! Another great video Marko!

[josephgodridge]

Marko you have changed my life I endlessly watch your videos and recently got a company called my budget in Australia who has helped me manage my high salary on the mines. I’ve applied your techniques and I am so much better off because of your advice. Starting to feel free and it feels amazing.

Doesn’t matter how much money you earn if your not disciplined it all doesn’t matter but your advice and learning techniques are easy and effective.

Thank you,

From Australia 🇦🇺

[mekhribanmamedova]

My MBA finance course in less than 15 min. Thank you!

[Capitalx]

It is SO freaking Rare to see a real Master like this ON THE WHITEBOARD this is just amazing! 💯💯💯

[nathancortez]

Still confused on how people can dislike his video. He is educating, sit down and take notes.

[ChrisInvests]

One thing you'll never get back in time so invest as early as possible 💴 😀

[dru]

I swear it's like you read my mind and post a video on what I was thinking about. Thank you for answering my questions finance Jesus.

[sebazizou]

The first part of the video did not make any sense to me, but the second part made it totally clear what the use cases for those equations might be. Thank you, keep up the great work!.

[impoppy]

Love what your doing man, keep the good work up. I really do appreciate you taking your own time to teach a bunch of random people on the internet on how to finance their money. Thank you Marko.

[benjaminmendezz]

This is why I’m subscribed to this channel.

[RicardoGarcia-qzhd]

Time is money, and in today’s world is rare to have them both at the same time...

[AverageJoeInvestor]

*GREAT VIDEO MARKO!* This is a great explanation of the time value of money 💰 | The big key #1 is what rate you can earn on the money + #2 what level of risk you have to put the money at to earn that rate | how averse you are to risk also plays in to the equation. GREAT VIDEO! 😎👍🏻

[valueStocks]

*This is the most basic concept that every person should be taught- but no one knows.*

[InvestingwithKurt]

The greatest thing about investing is that - with time - you benefit from compound interest. Marco, you did a really good job explaining that! Cheers ;)

[onecasualpenguin]

Simple and yet very important concept. Great video Marko!

[-subswithoutuploadingavid]

I think being able to calculate compound interest ia easily the most useful skill learned in maths.

[lorimast]

I feel like I'm back in Personal Finance really hated this chapter. This is a good overview of this.