Time value of money financial planning diagram. This is one of the top business frameworks helping clients improve on their approach to strategy, project management, IT, HR, internal processes and client experience.See below image for the Time value of money financial planning diagram. Time Value of Money is perhaps the foremost concept when it comes to financial planning. If you can’t appreciate the damage inflation can inflict on purchasing power of your assets, it is difficult to plan your finances well. Always remember that money in hand today is more valuable than the same amount of money a year later.
Updated Sep 25, 2019. The time value of money (TVM) is the concept that money available at the present time is worth more than the identical sum in the future due to its potential earning capacity.
it would be hard to find a single area of finance where the time value of money does not influence the decision-making process. The time value of money is the central concept in discounted cash flow (DCF) analysis, which is one of the most popular and influential methods for valuing investment opportunities.