When a person invests income, he or she spends no money in the short term and saves it all for the long term. uses money in a way that will increase its value in the future. spends income only on essential needs such as housing. cuts out all discretionary spending for a set period to save money.

Investing is all about making your money work for you! Instead of just letting it sit in a savings account, where it earns minimal interest, smart investors look for opportunities that offer potential growth. This can include stocks, bonds, real estate, or even starting a business. The key is to research and choose investments that align with your financial goals and risk tolerance. A common mistake many new investors make is trying to time the market, or they might panic sell during market downturns. Instead of focusing on short-term fluctuations, successful investing often involves a long-term strategy and patience. Remember, compound interest can be your best friend, so letting your money grow over time can lead to impressive returns!