Final answer:
The assertion that achieving financial goals requires either increasing savings or reducing spending is true. Savings fuel economic growth through bank lending, while spending drives demand. Effective financial planning and literacy are imperative for achieving financial stability and growth.
Step-by-step explanation:
The statement 'There are two means for achieving financial goals--you either need to increase your savings or reduce your spending' is true. In the context of personal finance, managing money effectively involves striking a balance between income and expenditures. To grow financial resources, individuals must either boost their savings by setting aside more money from their income or cut down on their spending to decrease expenses. Savings provide capital that banks can lend to individuals and businesses, spurring economic growth. Moreover, spending is necessary for an economy to function, as it generates demand for goods and services. Creating a budget and sticking to it helps ensure that you have enough money to cover your expenses and work towards your financial goals. Financial literacy about banking, investments, insurance, and credit is crucial for making informed decisions and securing one's financial future. Therefore, maintaining a balance between saving and spending is vital for achieving substantial personal wealth, which often requires sacrifice, patience, and disciplined financial planning.