November 6, 2025

Hi there

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.

If someone offered you $1,000 now or $1,000 a year from now, which would you choose?
Most people instinctively say, “I’ll take it now.” And guess what? That’s the right answer — not because you’re impatient, but because of a powerful financial principle called the time value of money (TVM).

Understanding this concept is like unlocking a cheat code for wealth building. It explains why investing early matters, why debt grows so fast, and why procrastination can literally cost you thousands.

The time value of money simply means that money today is worth more than the same amount in the future, because it has the potential to earn interest or grow through investment.

In other words: A dollar today can be invested to become more tomorrow.

Let’s look at a quick example:
If you have $1,000 and invest it at a 6% annual return, in one year it becomes $1,060.
That extra $60 is the value of time.

Now flip it — if someone promises you $1,000 a year from now, the “present value” of that future $1,000 is actually less than $1,000 today. Inflation, risk, and lost opportunity make it worth maybe $940–$960 right now.

Don’t worry — no finance degree required. Here’s the basic formula that investors and analysts use:

Future Value = Present Value × (1 + r)ⁿ

Where:

So, $1,000 invested at 7% for 10 years would grow to:
$1,000 × (1.07)¹⁰ = $1,967.

Your money nearly doubles just by sitting there. That’s the time value of money at work — compounding quietly in your favor.

The time value of money affects everything — from your savings account to your mortgage.

Here’s how it plays out in everyday life:

Let’s compare two friends:

Assuming both earn 7% returns, by age 65:

That 10-year head start makes Alex over $395,000 richer — without investing more money overall.
Why? Because time is the most valuable asset in finance.

Unfortunately, the time value of money also explains why debt is so dangerous.
When you owe money, time helps the lender, not you.

Example: A $5,000 credit card balance at 22% interest grows fast.
If you make only minimum payments, you could end up paying $13,000+ over time.

That’s the reverse of compounding — money growing for someone else.

Every year, inflation chips away at the buying power of your cash.
At 3% inflation, $1,000 today is worth only about $860 in five years.

That’s why keeping too much money in a low-interest savings account is risky — your money feels safe, but it’s quietly losing value.

Now that you know how powerful time is, here’s how to make it work for you instead of against you:

One of the smartest ways to think financially is to start valuing your money in future terms.

Instead of saying, “It’s only $100,” ask:
“How much will this $100 be worth in 10 years if I invest it?”

At a 7% return, that’s $197. Every $100 you don’t spend today could almost double later.

When you start thinking this way, spending becomes more intentional — and saving becomes exciting.

“The best time to plant a tree was 20 years ago. The second best time is today.”

The same goes for money. The earlier you start, the more powerful your dollars become.
Because in finance, time isn’t just money — it’s the engine that makes money grow.

So don’t wait for “the perfect time” to invest, save, or pay down debt. The perfect time is now.
Your future self will thank you — and probably buy you a really nice dinner with all that compound interest.

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.