What "buying power" means in finance

Buying power is the amount of money or credit available to an individual or entity to make purchases of goods and services. It is the amount of money that a person can use to make purchases and invest in various assets such as stocks, bonds, and real estate. The buying power of an individual is affected by factors such as income, savings, credit score, and other financial obligations. The greater the buying power of an individual, the more opportunities they have to invest and purchase goods and services.