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) Sam...