Need a response to this posting please!!!

The time value of money roughly refers to how much your money is worth now in comparison to what it is worth in the future. Holding money in a safe place under the mattress might not bring in any return on investment. One must consider the opportunity cost of the monies placed under the mattress. Time value of money generally refers to how much your current dollar possessed is worth in comparison to a promised future dollar (Ross, Westerfield, & Jordan, 2013).

When I think of time value of money I instantly think of the money I earn in the performance of my duties from my employer. I would love to be able to utilize the money I have earned for the pay period as I desire, whether it is to pay bills or for entertainment purposes. However, I completely understand that money loses buying power value over time, due to things such as inflation. Therefore, investing money is a must. I have a portion of my pay set aside into a Thrift Savings Program (TSP), which is similar to a 401K investment. I maintain keep faith that the money invested for the future will bring greater value than the loss in real value the money currently possesses.

Is the risk of investment for the future in my best interest? I believe so, and in return I have less money available to use as needed in the present. Perhaps my money might earn a higher interest rate through other means. Other factors are weighed in consideration of how to best invest the money. A major plus is that money invested into the TSP reduces the taxable wages. Thus, decreasing my taxable responsibilities on money that was earned but wasnt truly utilized. Another serious factor for me is that I lack the restraint to refrain from pulling money out of a personal savings account. Money placed in the TSP isnt easily available and would require serious effort and consequences to remove. That places a barrier between myself and the money, which there truly isnt in place for a personal savings account. I need those barriers as I tend to love to shop and most of the items I purchase arent going to provide any real return on investment, but they do keep me looking sharp.