January 21, 2009

Spend or save in the credit crunch

There are two different ideas here, the first is to save and cut back on all expenditure, this would seem to be sensible as the current financial climate is unsure and in some cases very fragile.

Therefore, by saving money this could make sure that if the worse happens then you have something to fall back on.

But the other side of the coin is completely different, in order for the economy to recover the is a need for people to go out and spend in the stores and buy services etc, if this does not happen, then the economy will just get worse.

This is a serious matter, but at the end of the day, it is better to have money to fall back on, rather than having none at all.

Source [Free Online Advisor]