October 29, 2025
Welcome Back,
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Good morning! In today’s issue, we’ll dig into the all of the latest moves and highlight what they mean for you right now. Along the way, you’ll find insights you can put to work immediately
— Ryan Rincon, Founder at The Wealth Wagon Inc.
Today’s Post
The Time Value of Money: Why Starting Early Pays Off
Have you ever wondered why financial advisors always say “start now” when it comes to saving or investing? One big reason is the concept of the time value of money (TVM). It might sound like a finance class term, but it’s actually super helpful for everyday earners and entrepreneurs. Today, we’ll unpack what it means, why you should care, and how it applies to you.
What is the Time Value of Money?
In simple terms: A dollar today is worth more than a dollar tomorrow.
Here’s why:
If you have money today, you can put it to work — you can save it or invest it and earn a return.
Inflation means money loses buying power over time — something $100 buys today might buy less in the future.
There’s risk: a promise of money tomorrow isn’t always guaranteed, whereas money in your hand now is real.
Because of these reasons, getting money now is generally better than getting the same amount later.
Why It Matters to You
Let’s get personal. Here are the reasons this matters for your own money:
Early action gives longer growth time. If you save or invest earlier, you let returns compound (earn interest on the interest). Over years, this adds up big.
Small amounts now can turn into big amounts later. Even if you start small, time multiplies your gains.
It helps you compare choices more clearly. Suppose someone offers you $1,000 now or $1,100 in a year — which do you pick? Using TVM you can decide based on expected returns.
It teaches the value of delaying gratification. You might skip one extra purchase today so that you can invest the money — future you will thank you.
How to Use It (Practical Steps)
Here are some actions you can take so the time value of money works for you, not against you.
Start saving/investing now, even if small.
For example: decide on $50/month in a high-yield savings account or simple investment fund.
Over 20 years, that grows more than you might expect thanks to compounding.
Use the “delay vs now” test.
Whenever you’re tempted to spend: ask, “If I invest that instead, how much could it be worth in 10 years?”
This helps you see the trade-off in real terms.
Look at future value vs present value.
Future value (FV) = how much a sum now will grow to.
Present value (PV) = how much a future sum is worth today. TVM shows you why those two are not the same.
Example: $1,000 today might grow to $1,500 in 10 years at a certain rate. Or someone might say “I’ll give you $1,500 in 10 years” — but that’s not the same as $1,000 now.
Choose investments with compounding in mind.
The longer your time horizon, the more you benefit from compounding.
If you delay until you’re older, you have less time — meaning you either invest more or accept lower gains.
Don’t ignore inflation and fees.
Even if you earn returns, inflation reduces what your money can buy.
Fees and taxes reduce net returns too. So the “real” growth matters.
Real-Life Example
Say you’re 25 years old and you decide to invest $200 each month. If you average just a 6% annual return, after 30 years you could have around $250,000 (approximate).
If you waited until you’re 35 years old to start the same monthly amount, you might end up with only around $140,000 (just a rough illustration).
That gap is because you lost 10 years of compounding. The earlier you start, the more you benefit.
Quick Reminder & Quote
“Time is your friend when you’re investing — use it, don’t lose it.”
Remember: let time work for you instead of working harder later.
Final Thoughts
Understanding the time value of money gives you a simple but powerful tool. When you remember that money now is worth more than money later, you’ll be more motivated to act early, save consistently, and invest smartly.
Even if you start with a small amount, time gives your money room to grow. The best part? You don’t need perfect timing or huge dollars. You just need consistent action and a head start.
That’s All For Today
I hope you enjoyed today’s issue of The Wealth Wagon. If you have any questions regarding today’s issue or future issues feel free to reply to this email and we will get back to you as soon as possible. Come back tomorrow for another great post. I hope to see you. 🤙
— Ryan Rincon, CEO and Founder at The Wealth Wagon Inc.
Disclaimer: This newsletter is for informational and educational purposes only and reflects the opinions of its editors and contributors. The content provided, including but not limited to real estate tips, stock market insights, business marketing strategies, and startup advice, is shared for general guidance and does not constitute financial, investment, real estate, legal, or business advice. We do not guarantee the accuracy, completeness, or reliability of any information provided. Past performance is not indicative of future results. All investment, real estate, and business decisions involve inherent risks, and readers are encouraged to perform their own due diligence and consult with qualified professionals before taking any action. This newsletter does not establish a fiduciary, advisory, or professional relationship between the publishers and readers.