An investment is an asset or item that is purchased with the hope that it will generate income or appreciate in value at some point in the future.When an individual purchases a good as an investment, the intent is not to consume the good but rather to use it in the future to create wealth. An investment always concerns the outlay of some asset today—time, money, or effort—in hopes of a greater payoff in the future than what was originally put in.

For example, an investor may purchase a monetary asset now with the idea that the asset will provide income in the future or will later be sold at a higher price for a profit.

An investment can refer to any mechanism used for generating future income, including bonds, stocks, real estate property, or a business, among other examples.