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Time value of money
The finance principle that a dollar today is worth more than a dollar later, because it can earn a return.
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What it means
This is a different idea from time value. It's about interest and investment: money now can grow, so receiving it later costs you that growth.
Both ideas point the same way: what you do with the present matters, whether it's dollars or hours. Time, unlike money, can't be saved for later at all.
Example
| $10,000 invested at 5% for a year | $10,500 |
| $10,000 received a year from now | $10,000 |
In Time Valuer
Time Valuer prices your hours rather than investments. Its Outlook shows the time you have left, which, unlike money, never earns interest.
Related terms
Questions and answers
What is the time value of money?
The finance principle that a dollar today is worth more than a dollar later, because it can earn a return.
Know what every hour is worth. Download Time Valuer for iPhone.