Money secret No. 11: The time value of money

Have you ever heard of the time value of money? It’s a fundamental concept in the finance world. The concept explains that money is worth more in the past than that same amount of money will be in the future. Basically, a euro is worth more today than a euro tomorrow. To put it another way, money in your palms today is better than the money in your hand tomorrow.

Now stop and ask yourself, “Why is that?” Exactly… because of compound interest! If you have cash today, you can start investing it, and that means that your money can grow. If there is money somewhere out there that’s owed to you, you should procure it as quickly as possible…and then start investing as soon as possible. The sooner you invest it, the sooner it can start working for you.

Money secret No. 11: You should claim outstanding money as quickly as possible…and invest it as soon as you get it.