What does it mean a dollar today is worth more than a dollar tomorrow
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submitted by Ann

Jimson

Because of the time value of money, a dollar received today has greater purchasing power and investment potential than a dollar received in the future. The idea is that money can earn interest or returns over time, making it more valuable now.

Jake

Think of it this way. If it's in the other guy's account, he's earning interest off it. If it's in your account, you're earning interest. The longer it's in your account, the more interest you can earn. Also, you could be investing it into other securities, like stocks.

Basically, the more money you have now, the longer you have to use it to make more money later.

Yolanda Yorgenson

It means that if you have that money now, you can use it or invest it to make more money, but if you wait until tomorrow, that opportunity is gone. So, a dollar today is worth more because of the potential to earn interest or returns.

Smitty

While we're on the topic, a penny saved is actually worth more than a penny earned, because you've already paid taxes on the penny you saved.