This is an interesting topic. Now, if you were asked this question: Would you rather have $1,000 today or $1,100 in a year? Or would you rather have $1,000 today or $2,000 in a year? I think very few people would choose $2,000 in a year. They would want to get that $1,000 today. For many people, making an immediate investment or meeting immediate needs is much more important than thinking about the future. Everyone dreams of doubling their money in a year, but when it comes to immediate cash, I'm not so sure. I hope I've managed to convey what I mean.
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It also does depend on the situation. If you are able to wait on the money and don't need it immediatly the 2K has the preference. But if you do need to money, you probably aren't in a situation in which you can invest money into things.
And yes 1000 now, due to inflation, would be a lot less than 2K in a year.
It also varies depending on the country you live in. Not in dollar terms, but if you think in your own currency, it is very likely that 1,000 Turkish lira today has more buying power than 2,000 Turkish lira a year from now.
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Yea I would take the $1,000 today over the $1,100 in a year but I would take the $2,000 in a year over the $1,000 today. Worst case I take a $1,000 loan with an compounded interest rate that is lower than 100% and just wait for the $2,000 to get here.
To your point though, everyone is different and what people do is dependent on their individual circumstances. Like if someone needs food or they want to start a business today they could care less about the $2,000 in a year.
I think you conveyed it well! Thanks for stopping by!
You're right, $2,000 makes much more sense, but especially in my country, people think they can make better use of that $1,000 and earn more. Most of the time they don't succeed, but that's how they think :D
I think a lot of people think that way 🤣
May just be a human thing. Hubris with greed is one hell of a drug LOL
I absolutely agree. When it comes to money and investments, many people are very arrogant. It's the same in the stock market, with gold, and with crypto lol.
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