In national income accounting, investment seem to be one of the most important particulars. It involves stocking of cash reserves in a line of trade, with an aim of generating profits. The expenditure approach to calculating total revenue, commonly-used by world counties, places it next to citizens’ expenditure. So, it is a point of duty for nations to watch their pattern of investment while improving standard of living. This will in turn help to ensure socio-economic growth and development.
However, it is very essential that we take note of what forms the roots of investment. Savings is an integral part of the circular flow of income. Irrespective of volume of earnings, financial experts emphasise on the balancing of one’s propensity to save. But, in actual sense, do people really save to invest?
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Answering to these question and others, second richest billionaire, Bill Gates, said:
“…… Huh? Saving for purpose of investment is a preety good idea. I’m Bill Gates, you know. What works for me might not work for you. For instance, I double as a software developer and serial entrepreneur. Likewise, I have quite a number of investment train on track. This literarily means that I have over a hundred percent tendency to save more in the long run …..”
After a series of question and answer session in the bulletin, Bill Gates concluded with:
” …….. A number of times, I see being poor from birth as no real thing. Certainly, it is dying in abject poverty that makes no real sense. People, everyone and anyone can learn to keep stocks. Think about keeping five hundred usd at the rate of seven percent per annum. Before a couple of years, you’ll arrive at a load of cool bucks. Therefore, my candid advice is prescribing investment as a dose to alleviating poverty in different parts of the world……………….”
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