The Investment That Changed Everything - Time Value of Money

In 2004, two young professionals, Raghav and Sameer, started their careers at the same company, earning identical salaries. Both had ambitions, but their perspectives on money were different.

One evening, while discussing finances over coffee, Sameer said,
"Life is unpredictable. We should enjoy our money while we can. Who knows what tomorrow holds?"

Raghav, however, had a different mindset. He had recently read about the Time Value of Money (TVM)—the idea that money today is worth more than the same amount in the future due to its potential to grow when invested.

The Diverging Paths

Sameer spent lavishly—weekend getaways, new gadgets, and expensive dinners. He believed he could start saving later when he earned more.

Raghav, on the other hand, decided to invest ₹10,000 every month into a simple index fund that historically gave a 12% annual return. He didn’t think much of it, just automated his investments and let time do its magic.

Fast Forward: 20 Years Later (2024)

Sameer, now 42, was doing well professionally, but despite multiple salary hikes, he had little savings. His lifestyle had inflated with his income, and he constantly felt like he was playing catch-up.

Raghav, on the other hand, checked his portfolio one evening and was stunned—his disciplined investing had turned those small monthly ₹10,000 contributions into a ₹1.0 crore portfolio!

Sameer was shocked.
"How is that even possible? You didn’t invest huge sums, yet you have a crore?!"

Raghav smiled and said,
"That’s the power of time and compounding. My money didn’t just sit—it worked for me, growing every year. The earlier you start, the greater the impact of time."

Key Takeaways

✅ ₹1 today is worth more than ₹1 tomorrow because of its investment potential.
✅ Compounding is the eighth wonder of the world—the longer you let your money grow, the bigger the impact.
✅ Procrastination is expensive—waiting even five years to start can cost you lakhs (or crores) in the long run.

Final Thought

Sameer sighed and said, “If only I had understood this 20 years ago…”

Raghav replied, “The best time to start was back then. The second-best time is today.”

And with that, Sameer made a commitment—to start investing immediately.