Money in the hand can be invested, and value is created that accrues over time.
Money in the hand can be invested, and value is created that accrues over time. The longer you hold onto your money, the more it could potentially earn through earning interest, dividends, capital gains, or other returns. Hence, you can earn returns either by delaying consumption or by using money to invest, with the possibility of compounding returns accrued by earning returns on both the principal amount and the previously accrued interest or gains.