

3151: The Time Value of Money (or why 25 years of cable TV doesn't cost as much as you think) by Stephen Popick with GRS
10 snips May 22, 2025
Dive into the intriguing concept of the time value of money and learn why recurring expenses, like cable TV, aren't as expensive as they seem over decades. Explore how inflation, investment returns, and opportunity costs influence financial planning. Discover the power of small changes in your financial habits that can lead to significant wealth over time. Plus, understand the importance of immediate benefits from saving and investing wisely while balancing present needs against future goals.
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Fundamentals of Time Value of Money
- Time value of money means money today is worth more than the same amount later.
- $100 today is worth $105 a year from now at 5% interest, showing their values differ.
Real Cost of Long-Term Cable Bill
- The long-term cable bill cost isn't the raw $132,683 calculated ignoring time value.
- Investing money instead means $100 now is worth more than $100 invested 25 years from now.
Investment Returns vs Inflation
- Investments need returns exceeding inflation plus time value to make sense.
- People focus on real after-inflation returns and their personal time value of money.