The Future and Your Finances

The concept of “time value of money” refers to the idea that money in your hand is worth more than money you’ll get in the future, assuming that the amounts of money are the same. This is because money you have now can be used to make more money later on.

But that’s not always the case. Maybe you’ll waste the money that you have now. Or maybe you’ll invest it in some backward-looking company that will see its value fall in a more dynamic and challenging future. There are no guarantees of success in finance, after all.

But we do guarantee this: If you aren’t thinking about the future when you think about your finances, you won’t end up in the great financial situation you should be aiming for. Below, we’ll talk about the future as regards your finances, both in terms of big-picture futures and individual goals.

Finding futuristic opportunities

By and large, the stock market tends to go up over time. So you could do much worse than to simply invest broadly in the market and hold onto your positions until you retire — in fact, this is what many experts will recommend that you do!

With that said, though, there are times and places for getting more daring. And if you want to make big bucks when you invest, it pays to be thinking ahead. The future holds plenty of surprises, but if you can predict a few of them, you’ll do quite well.

Take cryptocurrencies, for example. They’re quite futuristic by definition: They are, after all, digital currencies. But who could have predicted just a few short years ago that Bitcoin would be worth tens of thousands of dollars? A few people did, and they are very, very rich now.

Perhaps reading articles like Best Cryptocurrency to Invest in 2019 – Our Top 4 Picks will give you the edge that you need to find the next Bitcoin. Or perhaps, you’ll find the right tech stocks, startups, and other future successes that it takes to maximize your investing profits.

Keeping your own future in mind

The future of the market and of the world is obviously important, but just as important are your future needs, your goals for the future, and your future decisions about what to do with your money and how.

The decisions that you make now will influence your options in the future. Take buying a car, for instance: How much will you spend? Shelling out more now could give you a nicer vehicle.

On the other hand, something cheaper could give you the breathing room that you need in order to save more money for retirement this year — and, with the power of compound interest on your side, that could add up to quite a chunk of change later on in life.

And after you buy this car, you’ll have to care for it, point out experts who offer auto body repair services in Bend, OR. If you keep up with your car’s needs, it will last longer, run more reliably, and be worth more when you trade it in. That means you’ll have more cash on hand in the future — cash you can save for retirement or spend on your dream car once you’re financially secure enough to buy it.

Protecting your financial future means lots of planning. Don’t wait until later to decide if you want to buy a house someday. Don’t wait until later to start saving for that house, either.

When you save money, don’t just stick it in one big account: Think about what the money is for, which accounts are for retirement (hint: They should be tax-advantaged) and which ones are for your eventual down payment on your home, and so on. The more you plan for the future, the better that future will be for you.