Saving money and debt reduction are both essential elements to a sound financial future. To decide which to do first, you must weigh the cost of carrying debt versus how much you will earn from a savings account. In most cases, you are better off paying down high-interest debt as opposed to putting money in savings. However, if you have low-interest debt like a home mortgage or student loans, you may receive a greater benefit from building your emergency fund or adding funds to a savings account.