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Podcast: BiggerPockets Daily
Episode: Understanding the Time Value of Money (TVM): What Real Estate Investors Need to Know part 1
Description: The time value of money states that the money you have today is worth more than the money you’ll have at a future date. The two main reasons why are your potential earning capacity and inflation. It’s why people make investments instead of letting their money sit in their checking accounts. It’s why Mad Men’s Peggy Olson didn’t balk when she was offered $19,000 per year in 1970 (the equivalent of about $149,500 today). As a real estate investor, understanding the time value of money is critical because it’ll help you make informed financial decisions that w...