When you make an investment, you trade resources (like money or credit) for assets (like stocks or real estate) in an attempt to gain future benefits. For example, an investor might purchase stocks believing that they’ll appreciate in value or pay a dividend. A student might invest in their education by pursuing a college degree. Investments are often thought of in terms of money, but you can also pay for them using other resources, like time and labor. An investment can produce losses if the acquired asset’s value decreases or if other expected benefits (think of rent payments for a rental property) don’t pan out. Where there’s a potential for reward, there’s also risk.