Investing involves reducing consumption today in order to build wealth in the future.

Question

Quizplus · Accepted Answer

This statement accurately describes the concept of investing. By setting aside money today and investing it, individuals can potentially grow their wealth over time and have more resources available for future consumption. However, in the short-term, investing typically requires reducing current consumption in order to allocate funds towards investments.

Investing Involves Reducing Consumption Today in Order to Build Wealth