Cashing out on you cash flow now is a great way to liquidate assets and rid yourself of the hassle involved with receiving payments. With these assets you have the freedom to invest your money in other places, pay off a mortgage, buy a new vehicle, or have cash on hand to spend at your leisure.
Time value of money is a strong driving force in the economy today. For example, if you are receiving payments of $650.00 a month for the next 10 years, what will $650.00 a month be worth in 10 years? In 1998 regular unleaded gasoline in North Carlina was an average of $0.99/gal, and now in 2008 the average price is $3.99/gal. In ten years time the average price of gasoline in North Carolina has sky-rocketed over 400%.
So, you can see from this example that a lump cash of cash in hand today is worth more than smaller payments stretched across a long period of time. This is definitely something to think about as you are planning your budget for the future.
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