The investor makes money grow not only for his personal security and happiness. He becomes a participant in the economic activity of the country and a promoter of common welfare. Drops of individual savings cumulatively form the ocean of funds that keep the economy moving.
In the Parable of the Talents, Jesus illustrated how a foolish man buried his silver coin in a hole in the earth to protect it from thieves and covetous eyes. He did not use the money for his needs nor did he make it grow. The wise man invested it productively and made it yield a hundred times and earned his master’s praise and reward.
The Piggy Bank, invented in Western Europe in the14th -16th centuries has been a symbol of household savings. The money put into the pig symbolized the ‘leftovers’ and once the ‘pig’ was full, it was fit to be harvested!
The saving habit leads to spending and saving rightly and creatively, liberating the individual from anxieties and care.
Impact of Savings
There is now a school of thought that says that the welfare state hinders development of the individual. It collects taxes and gives it back in the form of welfare. But quite a chunk of the resources is lost in administrative expenditure and the beneficiary is none too happy with the quality of the services provided.
Personally funded investment schemes empower the individual, enhance his self-worth and invest him with a sense of autonomy.
Planning Investment
Plainly stated, investment rates mean the rates of return on one’s investment. With the emergence of the banking industry and managed funds, investment functions have been taken over by professional agencies.
Investment has become a specialized activity and a variety of avenues are on the investment scene. One needs some basic knowledge for making the right decisions. The individual has Investment climate to keep in view his –
· Present financial situation
· Tax planning
· Incremental income in the near future
· Requirements of liquid cash
· Needs in the short/ medium term, (house mortgage, education, foreign travel)
· Long term needs post- retirement, and
· Safety and security of capital and optimal rate of returns
Australia’s Investment Climate
The investment climate in Australia is reckoned to be very congenial.