Value of the Future

The value of the future refers to the idea that money or resources available today are generally worth more than the same amount in the future. This is because you can invest today’s money to earn additional returns, and there’s also the uncertainty of future outcomes. For example, saving instead of spending now can grow your wealth over time, making future money more valuable. In finance, this concept helps determine how much future cash flows are worth in today’s terms, guiding investment decisions and financial planning.