Investment: Investment refers to using savings or capital to acquire assets (such as stocks, bonds, or real estate) with the expectation of earning income or capital gains.
Opportunity Cost: Opportunity cost is the value of the next best alternative that must be forgone when choosing one option over another. Saving money means sacrificing immediate consumption and potential short-term enjoyment.
Time Value of Money: The concept that money available today is worth more than the same amount in the future because it has potential earning capacity through interest or investment returns.