Save Relationship Tips

is there a positive or negative relationship between saving and investment in a macro economy?

I guess I’m exactly sure what you mean, but there is a relationship between the savings rate of consumers nationwide and economic activity. See if people are spending a whole bunch of money then that means more demand for goods and services, more jobs, more business profits, stronger economy. If people are hoarding all of their money into savings that means that the opposite happens. However people have to save money at some point or another instead of taking on more and more debt otherwise people will start to default on loans and the banking system will begin to crumble (started happening last year). That was a bad situation.

Anyway the savings rate has been up all year which is an important step to making an economic recovery. Now spending is beginning to increase again, so soon jobs will be coming back and corporate profits will rise. Maybe you should think about buying stocks…..

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