In this discussion question you will discuss the concept of time value of money.

Discuss how you can relate the time value of money concept to your personal life. For example, how can you relate TVM to the retirement plans?

The time value of money is a basic financial concept that holds that money in the present is worth more than the same sum of money to be received in the future. This is true because money that you have right now can be invested and earn a return, thus creating a larger amount of money in the future.

TVM is a primary main principle in the prospect of looking into retirement plans and saving for future endeavors. Putting money aside now is an appreciating action due to the exact principle of TVM. The money being worth more now that it will at a later date take place due to not having as much time to let the money that is currently in possession appreciate to the same levels.

TVM personally can be applied, but the context can vary depending on the execution and placed value placed into time. Some people don't mind working longer hours because their value lies more in favor of time. There are many people whom's priorities lie in more favor of their off time causing them to have the "40 and done for the week" mindset with no qualms about the status of work. This is because their personal time to them possesses more value than the money and wages that can be earned if more work was performed with less emphasis on capitalizing on the earning potential here and now despite the same dollar being worth more in the long run in parallel with time. Knowing this can explain the personal aspect and priority of some people's choices on the prioritization of retirement funds as well.

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