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Showing posts from August, 2018

The Time Value of Time

The value of time is not constant, nor linear. Imminent time is exponentially more valuable than distant time. This ' Discounted time flow ' is easy to gloss over, hard to quantify, but radical. Time discounts money . $1 a year from now is worth less than $1 today. This is not necessarily inflation, or a conspiracy to devalue your savings. To make up for the risk of not receiving it, and the opportunities you forego, I would need to offer more than $1 in return for your $1 today. Time is similarly a resource, so proximity should similarly affect its value. If we expect compound growth rates for future money, we can expect the value of time to decay drastically the further it is into the future relative to now.