TVM: A Different Way Of Looking At Earnings & Investment

We’re often warned about the dangers of instant gratification. In the infamous Stanford Marshmallow Experiment, schoolchildren were presented with a marshmallow on a plate. They were given two options: eat the marshmallow now and get not get any more, or wait for a certain amount of time and then receive two marshmallows as a reward for their patience.

The conclusion that the marshmallow experiment seems to come to is that delayed gratification will always yield the most rewards. However, life isn’t as simple as a controlled experiment. If we’re talking about money, there are times when instant gratification provides a better, more viable option. After all, unlike marshmallows, you can do more with your money than just eat it away. For example, if you were offered $1,000 today versus $1,000 next year, you would choose to take it today. That’s not just because of instant gratification. It’s because, in this situation, waiting could actually cost you — that $1,000 could lose value due to inflation.

The time value of money

In our example above, that one-year wait could have afforded you many opportunities for investment, and thus, many opportunities for returns. In this situation, we see the concept of the time value of money (TVM) in action. According to a TVM overview on AskMoney, the concept behind time value of money argues that a certain sum of money will be worth more when received in the present rather than in the future. This is because inflation can cause the sum to decrease in value. Additionally, delaying access to the money prevents you from gaining any returns, should you choose to invest it.

Applying TVM

The time value of money isn’t just about having instant access to money. It’s also about having more time to make your money work. For example, let’s say you want to save for retirement. Would it be better to start investing in your 20s, when your income is smaller and retirement is a long way away? Or would it be better to invest in your 30s, when you can afford to make substantial investments? TVM argues that it will always be the former.

Experts at Business Insider argue that investing in your 20s will earn you more money by 65 than investing in your 30s. Let’s say that each individual makes monthly investments worth $100 with a 5% annual rate of return. The person who invested earlier will have $73,000 more in savings than his counterpart, even though he only contributed $12,000 more.

But why is that? The person who invested earlier on understood the concept of TVM and gave their money more time to compound. With compounding, money doesn’t grow linearly: you make gains from interest, and then your gains make gains, creating a snowball effect. Your money’s growth potential increases the longer it’s invested, simply because the interest applies to your investments as a whole — including the revenue generated by the interests — and not just the money you wire into your investments.

The bottom line

The main idea of TVM is this: when an opportunity arrives, don’t wait. You’ll be wasting your growth potential if you do. As long as you know the risks, and know how to grow your money, earlier investments will always make the best returns. As The Guy Who Knows a Guy, I know a little about a lot, including making the most of your investments. If you would like to work through your options and get referrals to reputable experts who can help you with investment or anything else you need, book a call with me.

The Monster Obstacle In Your Imagination

Yellow Cat is quite alert to dangers in her own imagination.

We have a new dog in our house: a 103 pound Great Pyrenees. Our 19 pound orange cat is not pleased by this.

The cat, Yellow Cat, has hidden under the bed and barely eaten for a week.

You are probably thinking that this is because Rain, the new dog, will not let her, but that is not the case.

Great Pyrenees are herd dogs. They are bred to manage herds and bark at predators. Yellow Cat is not her herd and is not a predator, and thus is about as interesting to her as a kitchen cabinet.

Yellow Cat, on the other hand, has decided that Rain is a post apocalyptic monster. When we have tried to introduce them, Rain is quite uninterested except for the fact that our hand on the cat could be better put to use scratching her ear.

While Rain looks bored, Yellow pins her ears back, opens her eyes wide, hisses and spits.

You see, Yellow has concocted and entire narrative about this dog in her head which is completely separate from reality. She believes the she has to hide, that she is in danger, that she cannot eat.

Rain is quite uninterested in the small orange animal in the house.

But there is only one thing in the house preventing Yellow Cat from going about her day: Yellow Cat.

Yellow Cat has never been a particularly smart cat. That’s why she is only named Yellow Cat.

However, I have seen very smart humans do much the same thing.

We invent monsters to be afraid of.

We create insurmountable obstacles to stop us.

We hold ourselves back from our best lives because of narratives we create in our own imaginations.

Events are not good or bad but what we make them. The dog entering the house is far more of an impact on Yellow Cat’s mindset than on the actual facts of her life.

The same is true if we lose a job, move, end a relationship, get a promotion, graduate school, or anything else.

Every event creates a new set of circumstances which we can deal with in any number of ways. Too often, like Yellow Cat, we interpret the events in such a way as to limit our own choices far more than circumstances do while failing to recognize the opportunities.

This big fluffy dog is lonely when we’re not around, and Yellow Cat is as well (although probably not as worried about it). She could have a buddy if she could see past the terror she has imagined.

What could you have if you could see past the monsters you have created in your own imagination?

Do you find yourself allowing imaginary monsters to hold you back? Let’s talk about it. I can often help people get clear where the real obstacles are and are not. Click here to schedule a call with no cost or obligation.

Luca Senatore, Secret Agency Mastermind – Podcast Episode 70

Luca Senatore grew up in northern Italy, raised by a single mother with little money and plenty of debt. He started working 13, and moved to England with £65, no knowledge of the language, and no credentials.

A temp agency got him a job at a local university running dishes to diners. He learned some English by watching a movie over and over, and worked his way up to being the marketing manager of a struggling restaurant.

He managed to double the restaurant’s revenues.

Since then, through discipline, smart work, and powerful connections, he has built up a multimillion dollar coaching business teaching simple steps to success.

Most people overcomplicate their process. Luca and his team keep it simple and keep you focused.

In this interview, you will learn a simple structure to guide a business that is so powerful I am building a course around the principles I learned in this interview.

Learn more about Luca at

Check out his powerful Facebook Group The Six Figure Coaching Agency

Podcast: Play in new window | DownloadWebsite
Subscribe: Spotify Apple Podcasts | iHeartRadio

Other Links:
Morning Motivation Facebook Group
Morning Motivation

Previous Episode: Nicole Majik, Empowerment Alchemist – Podcast Episode 69

Values and Shiny Object Syndrome

Have you ever done something and immediately wondered why you did it?

We are driven by our values. Values aren’t just the positive things we value. Some values are neutral or even seemingly negative.

We can value virtues like honesty, integrity, hard word, compassion, and community.

We can also value things like attention, adulation, respect, sexual satisfaction, rest, and even vengeance.

Continue reading “Values and Shiny Object Syndrome”

Derek Pacque, CEO/Founder of Chexology – Podcast Episode 66

What do coat check, bag check, valet, and businesses like ski rentals have in common? Frequent lines and claims concerning “misplaced” or “damaged” goods. Their app uses a patented visual profiling process that eliminates these century-old stigmas. Today, their clients include the likes of Dream Hotels, Hilton, MoMA, Live Nation, AMEX, and Nike.

Their vision is to expand markets that share, store, and lend out items.

If they can use tech to allow strangers to trust each other with their stuff, anything is possible!

Podcast: Play in new window | DownloadWebsite
Subscribe: Spotify Apple Podcasts | iHeartRadio

Other Links:
Morning Motivation Facebook Group
Morning Motivation

Developing an Entrepreneurial Mindset for the Digital Age

A digital report by We Are Social and Hootsuite recently highlighted a number of statistics that demonstrated how integrated technology has now become in people’s lives. For example, more than 5 billion people use a smartphone. At least 4.2 billion of them use social media for an average of 2 hours and 25 minutes daily. There are even innovations like the cloud and artificial intelligence that can help businesses streamline their processes. All of this is proof that technology provides many opportunities to take advantage of — you just need to learn how to fully utilize them for your business.

That said, here’s what you need to do:

Continue reading “Developing an Entrepreneurial Mindset for the Digital Age”

The Guy Who Knows A Guy, The Connector – 1 to 1 Welcome Sequence

When I set up a one to one with someone, I send them a series of brief emails to share the various aspects of what I do. I have copied the particular messages to my blog so they can jump ahead to those that interest them more.

This is the one where I discuss my network and my book.

Continue reading “The Guy Who Knows A Guy, The Connector – 1 to 1 Welcome Sequence”

Courses – 1 to 1 Welcome Sequence

When I set up a one to one with someone, I send them a series of brief emails to share the various aspects of what I do. I have copied the particular messages to my blog so they can jump ahead to those that interest them more.

This is the one where I discuss Conference21.

Looking around America in the 2020s, one thing is very clear. This ain’t your grandpappy’s economy. Long gone are the days when you can get a high school diploma, get a job down at the plant, and support a family until you retire with a pension.

Also gone are the days when you can get a college degree and be assured of good employment.

The economy has become more difficult. There are more losers and less winners than in previous decades. Much of this is because the economy has changed dramatically over the last twenty years, but we are still teaching people to work like it’s 1995.

Goalsetting, mindset, networking, and other topics are no longer the exclusive domain of entrepreneurs. Or, put another way, most people need to be at least a little entrepreneurial if they are going to be financially successful in the modern economy.

The problem is that the people who most need this guidance are those who are least able to afford it. The single mom working at Walmart for $8 per hour, the one who would do anything to make a better life for her family, cannot afford a $500 per month coaching program.

I wanted to do something that would make the knowledge I have to share accessible to a broader audience. The Morning Motivation podcast provides the inspiration, but people also need tools for action, and that is why I am creating a series of low cost audio courses.

For only a few dollars, those who are looking to find ways to start winning in the modern economy can find audio courses that will guide them on their path.

As I launch new courses, I put them on my courses web page at

Folks can also subscribe to my Patreon page and get every new course included at

I appreciate you taking a few minutes to learn about what I do. Tomorrow, I will be sharing a bit about my network and how I built it, and I’ll have a special gift for you.

Why does it say “The Guy Who Knows A Guy” under my name in each email? What does that mean? Check your email tomorrow and you’ll find out.

-Michael Whitehouse
The Guy Who Knows A Guy