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A dollar today is worth more than $1 tomorrow. Im sure you heard that one before. This is true for any business, but also for your own personal finance. Its a simple principle that has a fancy name, the time value of money. For example, youre selling your product for, lets say $10,000. One day your customer asks you, if instead of paying the $10,000 in cash right now, that he can pay $10,800 in equal payments over four years. What would you say? Whats better for you? Lets find out. (upbeat music) Before we get started, a brief thanks to Skillshare for sponsoring todays video. Skillshare is a learning platform with lots of great courses, but Im going to chat more about them towards the end, youre going to find a link as well in the description of the video. So intuitively, youll know that if someone promised you $1,000 now, its a better deal, than lets say getting the $1,000 in 10 years, right? But why is that? Well, for one, money has an earning capacity. So you could take