We keep hearing that consumer spending propels 70% of our economy and that we will not see real growth without an increase in consumer confidence, meaning spend, spend, spend. This is very bad advice! Let other people spend -- you should be saving!

This is a theme I have been hammering on all year and I will continue to do so. I believe this is so important to our personal and national long term health that any true investment discussion, be it on the web, radio, television, newspapers or magazines, is just blowing smoke if it is not a primary focus.

On a day when the Dow Jones industrial average closed down 400 points, you may be asking yourself, 'What can I do to make myself feel better about this?'

Charles Schwab Corp. (NASDAQ: SCHW) has an idea for you: Invest more for your retirement.

Here's how the logic goes, and I agree with it (even though, of course, it is good marketing for Schwab to promulgate such ideas).

The discount broker has found in surveys that most people (63%) say they sleep better at night when they are saving for retirement, yet many people save very little for retirement each year. They also found that people save for vacation or household items before they max out their retirement plans. And most people are positively drowning in credit card debt, probably because they made those purchases and took those vacations before they'd actually saved the money (that's my sophisticated analysis there, not survey results).

In a conversation with an attorney friend of mine, who happens to be a woman, she asked for some general financial guidance. During the course of the conversation it occurred to me that women need to save more than men. There are many reasons for this, here are a few:

The first and most obvious reason women need to save more than men is that they live longer -- often without the support of a significant other. Living longer and living alone cost more money.

Second of all, women still do not have complete earnings parity with men. Some of this has to do with job type and some with history. But nevertheless, we are not there yet. If there is a 15% disparity, then a woman is starting at a disadvantage whether saving for her retirement in the future or for buying a gallon of gas today. This can only be made up by saving more and investing more. This is a worthy goal except that with less resources the difficulty is exacerbated.

This is the part of a new series of columns called "The Naked Truth," by retirement expert Dan Solin. Please bring him your questions, in the comments box, and he will answer as many as he can.

Every survey I have seen indicates that saving for retirement is the number one goal of Americans.

Given the extreme importance of this subject, it is puzzling why investors continue to look for investment advice in all the wrong places.

Case in point: Many investors rely on Jim Cramer's stocks picks. Yet academic analysis clearly demonstrates that the stocks he recommends have an initial bump in price, but reverse their gains less than two weeks after his recommendation. These studies show that Cramer can move markets, but only for a very short period of time.

Inflation: "An increase in the amount of money and credit in relation to the supply of goods and services; An increase of the general price level; An excessive or persistent increase in wages and costs causing a decline in purchasing power."

Recession: "A temporary falling off of business activity during a period when such activity has been generally increasing."

(Source: Websters New World Dictionary, Third College Edition)

Rather than an opinion piece, which is what I generally write, this little snippet is meant more as a discussion generator than a statement of my own economic view. I earnestly invite our readers to weigh in on the matter. Inflation or recession, are we now experiencing either or both?

In an excellent column for Forbes, Ken Kam explains what's really wrong with Social Security. Forget the politics and the debate about its future solvency -- Kam explains it this way: When his daughter was born, he realized that if he could invest $2 thousand for her each year of her life and grow it at 11% a year (An aggressive target, but we'll go with it), that money would have grown to $1 million by her 40th birthday -- and $30 million by her seventieth!

What does that have to do with Social Security? Most people put in more than $2 thousand per year -- a lot more. And yet Social Security will never provide them with anything like that kind of a nest egg.

Albert Einstein is widely quoted as having said that compound interest is the most important mathematical discovery of all-time -- or words to that effect. And yet our federally mandated retirement system fails to take advantage of it, instead opting for what amounts to an elaborate Ponzi scheme, sustainable only by the rule of law and population growth.

Mr. Kam talks about his idea for a "Bicycle Trust" as a way to "assist our children in their efforts to become self-sufficient, valuable members of society. Just as a bicycle enables you to travel farther and faster than being on foot, our trust should amplify our children's own efforts to develop their abilities so they can go farther and faster than they otherwise would have."

There's a link to more information in the column, and it's certainly worth checking out.

In the weeks ahead, BloggingStocks will take an in-depth look at the U.S. dollar's decline, its impact on the global and U.S. economies, as well as on job creation, trade, and investment.

Remonstrations about the weak U.S. dollar are getting to be a little bit like what Mark Twain said about the weather:

"Everyone seems to complain about the weather, but no one ever seems to be able to do anything about it," Twain said.

Similarly, everyone seems to complain about the weak U.S. dollar, but no one ever seems to be able to do anything about it.

This time it was former U.S. Treasury Secretary Robert Rubin, who Tuesday told Bloomberg News that relying on a falling currency to increase exports isn't a "sound approach" and said policies should be implemented to strengthen the dollar.

In his last speech prior to the September 18th Federal Reserve meeting, Federal Chairman Ben Bernanke said the world has a savings glut which should help keep interest rates low.

Conversely, while the global savings rate is just fine, the U.S. trade deficit is something that we have to start worrying about, as the Fed Chairman noted that the current account deficit has jumped to 6.2% of GDP, up from just 5.5% in 2004. This has occurred while the U.S. dollar has gotten weaker, which is somewhat counter-intuitive since a lower dollar was suppose to reduce the deficit, but hasn't.

The U.S. and global economies are filled with such contradictions. As the U.S. trade deficit has expanded, the yield on 10-year inflation-indexed Treasury securities stands about 2.4%, up from 1.85% in 2004, but well below the 4% in 1999. While the bellwether economy of the world, the U.S., runs up trade and budget deficits galore, foreign investors continue to hold our currency and use it as the fundamental source for their monetary base.

While there are plenty of fast-talking late-night gurus out there who want to give you the information you need to get rich (all for the three easy payments of $29.95, but wait there's more...), the New York Times's Damon Darlin has some of the best personal finance advice that graduates don't want to hear:

• Save 10% of your income right off the top.
• Buy stuff used.
• Enroll in a 401(k).
• Don't borrow money to buy depreciating assets.
• Make your own coffee.

He offers two compelling reasons to start saving early. First, there's the most obvious one. Starting the cycle of compound interest early means your money will grow more. But then there's another one that I hadn't really thought about. Living below your means conditions you to be comfortable with a less expensive standard of living, which will also save you money in your retirement years.

There's another important thing to remember, and it's probably the best reason of all for being wise in your money management. I first realized this paradox when I was talking to my friend "Jim," who, after years of poor spending habits, has run up a huge amount of credit card debt, and lies awake at night worrying about money. He used to make fun of me for my Scrooge-like spending habits and obsession with saving as much money as possible. The other day, we sat down to discuss his problem.

Whenever I come across an interesting website that I think our readers will want to take a look, I post it here as "Website of the Day." Of course, I don't come across them every day, or even on a periodic schedule. So it's really not the "Website of the Day." I'm just calling it that.

Anyway: Today, I think you should take a look at americasaves.org. The site has received the support of such heavyweights as Alan Greenspan, and promotes saving and fiscal responsibility at the individual and household level. You can also join the more than 50,000 other Americans who have pledged to meet their personal financial goals. The site provides savings calculators as well as tips on how to save more money and cut expenses.

Admittedly, much of the advice consists of platitudes such as pay off high-cost debt, buy a house, contribute to your retirement account, and open a high yield savings account. But in an era where we, as a country, have a savings rate of less than 1%, it is advice that people desperately need to hear. In particular, show the site to college students you know. Also, buy them a copy of Suze Orman's Money Book for the Young, Fabulous, and Broke.

According to a piece recently in the Wall Street Journal (Subscription required), Capital One is offering a new credit card with a flat 1% cash refund on card spending, with another 0.25% annual bonus each November. Fidelity Investments offers a card with a 1.5% cash refund, and EmigrantDirect.com has one offering 1.4%. What makes Capital One's card unique is that if offers very few restrictions and really is a "flat" refund on all spending. Capital One's card has no annual fee and no limits on earnings or other restrictions.

Here's the kicker: Of course, in order for this to work, lots of people have to pay off only a portion of their bill each month. With so many consumers paying 15%+ interest, the 1% cash refund may not be that great of an expense. This is a glaring reminder of how much money credit card companies are making: They can afford to literally give people money. Americans have a serious addiction to consumer credit, and it will result in disaster. With the nationals savings rate below 0, how exactly are we funding our retirement?

In a column in the New York Times, Paul J. Lim argues that automated 401(k)'s do not excuse the worker from putting everything on auto-pilot and then not looking at it again. Assuming that the funds selected are low-expense index funds, I am inclined to disagree with this. I think that life-cycle funds and automated re-balancing can save investors a ton of trouble and, if implemented well, create a no-hassle means of retirement saving.

In the piece, Mr. Lim points to the tendency of 401(k) investors to chase performance by piling money into emerging market funds which have performed so spectacularly of late:

This story is more about saving than investing. If your net worth is less than $10,000, you need to save, save and save some more! Future articles will address larger sums.

I have been asked many times in person and in the comments section about how to get started as an investor. Since it is essential to have something to invest besides your time, two things above all are required: Educate yourself, and be thrifty in your spending habits.

Most people reading the AOL Money & Finance section probably have ten grand to invest. If you do not currently have $10,000 to invest you are in trouble and there is no time to waste.

First: Reduce spending on extras, even extras you think you need to live.

I love personal finance books. The inspirational stories, the triumphs over debt, the famous guy who stopped buying lattes and suddenly had a million dollars in his bank account a few months later. (Well, not really. I think it took 30 years or so for him to rack up a few hundred thousand, but that's almost besides the point).

The only problem with personal finance books is that you don't need to read a whole book to get the gist of the ideas presented. In fact, a recent SmartMoney feature sums up how to save some money and get ahead in five straightforward, very practical points. (See, "Top 5ive Ways To Get Ahead"). The tips include how to get higher interest on your savings, pay lower interest on your debt, save more money on income taxes and get a raise.

But take a step back and I can sum up the key to financial security even more concisely: Stop buying so much stuff. The truth is, for most people, it's a lot easier to spend less money than it is to make more money. And every dollar you don't spend today helps keep you out of debt, save more and can even be turned into investment income one day.

It could be GE, it could be Nike, or it could be something else. But keep your eyes and ears open folks. We are going to witness the great U.S. giveaway.

We keep hoping to sell our wares in China and we do. But only at a pace that is structurally managed by the Chinese to grossly favor them and continue to create huge trade imbalances here. These imbalances are financed by their accepting our Treasury notes in return. As they amass fantastic sums of capital at modest but stable rates of return on their investment, they allow us to keep buying their goods and stimulate still further imbalances. The interest payments compound and compound the problem too. They are truly giving us enough rope to hang ourselves.

In addition to our trade imbalances, we are expanding our Federal spending and increasing our national debt without hesitation -- as if we could just print money without any pain.

The Federal Reserve, meanwhile, believes it must continue to raise interest rates or watch the dollar sink in value due to the deficits and trade imbalances. It is not inflation that they are worried about per se, but the weakness (even collapse) of the dollar. This is very serious!

Now if you're the Chinese holding billions and trillions of U.S. dollars you are going to have to diversify your portfolio some day soon. Add to this the fact that holding dollar assets will depreciate in value and you have some powerful incentives to move from debt instruments to equities. Even Warren Buffett has been hedging against the dollar. This mean buying hard assets like real estate, gold, and most importantly U. S. companies which to them appear on sale.