Savings vs. Debt Equation Gaining Important Publicity
September 30, 2009
If you have not already, make sure to read the great articles from Money-Rates.com contributors Adam Jusko and Richard Barrington that mutually show how saving money is much better than going into unneccessary debt.
Indeed, saving money has become as wise today as refinancing the house was (or seemed?) when you had 75 percent equity and could take out $500,000 at 5 percent, if in fact that seemed wise then.
This recession has certainly emphasized the importance of frugality, which then enables you to save. Because it really is self-discipline, in the end, that separates those who have some money from those who are dead broke.
This recession has surely created a class of broke people that are not to be envied. Unemployed, perhaps even unemployable in the short term. Worse yet, loaded down with debts it is frankly impossible to repay.
Meanwhile, those who saved their money, in CDs or money market accounts or savings accounts, are doing OK. Hanging in there, and the stock market has brought back some of the 401K help, too.
Unless, of course, those who were saving were also spending, or perhaps even overspending. Nevertheless, even in that situation, the savings are still an assset, and so are, maybe, the 401K's.
