Time-value of Money, a cornerstone of Finance theory

A dollar to day is worth more than a dollar tomorrow. If you want to spend a dollar today, but have no dollar of your own to spend, you will need to borrow a dollar from another person and pay a greater sum to compensate the lender for their own forgone use of said dollar. In short, you need a loan.

Investors are individuals that save money to devote funds to earning more income or accumulating wealth. Investors use their capital to either make loans, to other people or organizations, or purchase assets that have potential to generate income or increase in value.