TVM is important because it helps investors and the public make decisions about saving for retirement and maximize investment profits. This important principle of financial literacy relates to your savings assets and purchasing power. Here are some benefits of knowing the TVM concept Savings TVM can be the difference between a happy retirement and a stressful retirement due to insufficient retirement savings. We often find that social security or old age security payments often cannot meet our nes in retirement.
Well here time is a ver
Important resource. The sooner Nigeria WhatsApp Number List you understand the principles of TVM and use them in financial planning the more secure your retirement will be. Investment The investments you make now will grow in the future which can increase over time. For example if you put IDR million into a savings account with an annual interest rate of then you can have IDR in the following year. And the profits may continue to increase as time goes by. However if you dont investsave the money you could lose the opportunity to earn interest or a profit of IDR million for one year.
This is closely relat to
opportunity cost where Qatar Phone Number List the sooner you invest the greater the potential profit you can get. So when considering an investment it is important to evaluate the risks and rewards as some assets have more risk and volatility. Purchasing power Inflation is a condition where peoples purchasing power disappears over time. For example in the s if one liter of milk cost liters then you ne IDR to buy the milk. Then inflation caus the average price per liter of milk to increase to IDR after thirty years. So now you can only buy liters for the same amount of money.
