Savings = Investments September 10, 2007

This is a fundamental principle of macro economics. It is also a fundamental of good sense. You cannot invest what you do not have.  Investments should be a goal for those who are trying to accomplish certain financial goals. The stock market is a risky investment, and only those who can afford to lose money can afford to invest in the stock market. If you have large amounts of debt, you cannot have savings. You may have a savings account with money in it but if your debt exceeds your savings you are still in debt, and if the interest on your debt is greater than the interest on your savings account or money market account it would be wiser to clear your debt and then save. Be smart with your money, you work for you money so allow your money to work for you, by learning and understanding the true value of a dollar.