Savings and Investment

Up to this point, we have been looking a year or two ahead, trying to figure out when that next recession will arrive, and what the downturn is going to do to your pocketbook, if you are not prepared. Now we put on a different pair of glasses and look farther into the future, focusing on your retirement, and on the well-being of your children and your grandchildren.

We prepare for the future economically by saving and investing. If we are worried about the future, instead of spending all of our earnings on wild parties and the latest fashion, we may choose to put a little away for future purchases. That is savings. When we put that money into a savings account, it will find its way to the investors who use the loans to finance the creation of new productive assets such as new factories, office buildings, and shopping centers. That is investment.