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Profit
Profit is the money you have left after paying for everything it cost to earn it.
Example
You spend $2 on lemons and sugar, then sell five cups of lemonade for $5. Your profit is $5 minus $2, which is $3. That $3 is yours to keep, save, or spend.
How it fits in
Profit is not the same as cash in the bank. A profitable business can still run out of cash if customers pay slowly and bills arrive fast. Healthy companies eventually need both. Profit proves the business model works. Cash is what keeps the lights on while it does. Many early businesses focus on revenue first; the lasting ones learn to focus on profit early.
Where this is taught
Related terms
When the money you earn from saving starts earning its own money on top.
Interest paid only on the original amount, never on the interest you have already earned.
Needs are the things that keep you safe and well. Wants make life nicer. Mixing them up is what empties most budgets.