Imagine someone who decided to start their own mini-business while in school. For instance, Jason went to the store every day and bought packs of gum — four or five. The price of one pack with 5 sticks was 25 cents. But Jason decided to outsmart the others: he sold one stick for the price of one pack.

Now, let’s do some math. Jason earned $1.25 from each pack sold. After deducting the initial cost, the profit is $1 per pack. These results impressed his friend Ben. He even counted how much Jason could earn before graduation. At this rate, the total would reach about $4,000 in six years. Now Ben had a few questions. Could he become a partner and buy half the business? How much would he pay for it? What would he get as a result?

Ben understood that it was risky to invest the entire sum now. It won’t cover his expenses immediately. The business would generate revenue slowly over the years. Maybe it wasn't the best idea? But Ben made the choice. He was willing to pay $450 now to earn $1,500 in six years. That’s how business investment works.

The first step to wealth is saving for the future. Forget about spending your last money on an impulse purchase. Instead, choose saving and investing. There are two effective options: buying bonds and investing in a bank with interest. You shouldn’t just put your money in a closet. That way, you’ll lose its value due to inflation. A bank is the perfect place to stash your cash. Let’s say you have $100. If you put it in the bank at 10%, you’ll get $110 in a year. It’s like a bonus just for not spending it right away.

Buying bonds is lending money to the government or a company. A company may offer 10% each year, but there is a risk that it may not repay the debt. The US government pays less — about 6%. But it is a very reliable investment. When you make riskier investments, always check if they offer higher returns to cover the risk.