Time value of more information money The second reason you never want to tie up your own money in an investment if you have other options has to do with a term called time value of money. You see, money isnt really worth what you think its worth for very long. Time value of money is a central concept in finance theory, and its used to figure out what money will be worth at some future time, given interest earned or inflation during that period. It has to do with buying power, and it basically says that the dollar you hold today will buy less in the future.
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