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Memory Overhead : Each instance of a class with its set of instance variables consumes memory. If there are many instances with large sets of variables, it can lead to increased memory usage

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An instance variable is a variable that belongs to an instance of a class. It is defined within the class and is used to store data specific to each object created from that class
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Attributes or Properties: Instance variables represent the attributes or properties of an object. For example, if you have a class representing a "Car," instance variables might include attributes like "color," "model," or "year."

Scope: The scope of an instance variable is limited to the instance of the class to which it belongs. It is not shared among instances of the class; each instance has its own set of values for its instance variables.

Initialization: Instance variables are often initialized in the constructor of the class. The constructor is a special method that gets executed when an object is created. It's responsible for setting up the initial state of the object, including the values of its instance variables.
 
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Instance variables are declared/defined in a class but outside the constructor (s), method(s) and block(s). For memory management, when memory is allocated for an object in a heap, a slot for each of the instance variables is created. Further, see Instance vs Class Variable with respect to memory
Java Instance Variable: Use, Features, Instance vs Class[^]
 
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