DQ1 Week 4 Please respond to this discussion question by Thursday Day 3 How do you apply the time value of money concept to make decisions in your personal life How might you use the Time Value of Money concept as a quantitative reasoning tool in business Compounding is a Rothschild concept Compressing time is an Einstein concept Together they represent the finest rates of return ever So compounding at a great APR and compressing time by compounding more often The issue is either the principle amount or the rate of return When I worked for BP I was able to invest in my 401k with emerging markets I was seeing 35 return on my money Every day I saw a return I would reinvest it I compressed time by compounding daily It cost me in management fees but in the end I increased my net worth by six figures over two years I used the value of time value of money by investing principle every two weeks along with a 1 1 company contribution So instead of 75 000 invested at the beginning I grew the account over time reaching that principle level and heavily invested the principle in day trading Time value of Money in business is the issue of inventory growth A business person has to be careful of marketing too fast and not having the resources to ship product and too slow that valuble space is used for storage The judicious use in the first year of a business is to start slow and build every month growing market share Then the margins alone will be enough to grow the business so that debt can be avoided This is where the rubber meets the road so to speak in successfully starting and running a small business Case in point I am thinking of starting a charge station As e cars are in the market the auto companies have iPhone and Android APPs that show where charging stations are Start small and locate 75 miles radius on a popular stretch of freeway small piece of land where 3 phase 440 Volt AC power is located Install one dual fast charging station As the demand increases get more land and more charging stations until at about 12 stations open up an modern gas station style offering with a car wash and a nice eating establishment Time value of money start small and rise Anyone interested in this Ford is selling a 100 mile capacity e car in 2013 coming to showroom floors in September they have developed that APP I am referring too No need to advertise just link into all the APPS and watch the charge meter go round and round They use a credit card machine built into the charger All ready to go off the shelf today No tanks all automated and reliable Manage it with a webcam for security and record daily events Have employees who live close by to manage the place cleaning it up and being a face to the e car consumers It is time to change the world