Latest news with #financialindependence
Daily Mail
an hour ago
- Business
- Daily Mail
Why investing matters: How to build your wealth and beat inflation
In this first chapter of This is Money's new investing guides series, Simon Lambert explains why investing over the long-term pays off. He looks at the opportunities that stock market investment opens up, the potential for higher gains over cash and how savers can shift to investing. And read his five quick tips for investing success, whether you are starting out or an experienced investor. Why invest? Why should I invest? This is the question everyone should ask themselves before they start investing – and it's worth existing investors considering it periodically too. It sounds like a simple question but once you start mulling it over you find that there isn't one simple answer. People invest for many different reasons. They may have a goal in mind that they are aiming for, perhaps to leave an inheritance or an ambition to achieve financial independence; a retirement pot that they hope to build; or could simply be driven by a desire to build their wealth. But while the answers may vary, there is a thread that runs through the variety of reasons that people invest, and it is to give themselves a better future. Why investing pays off Stocks and shares investing offers a great opportunity. It provides ordinary people with a simple way of putting their money to work. It allows people to build up their wealth over time, benefiting from the profits that good companies can make, from the dividends they pay to reward shareholders, and the magic of compounding that magnifies those gains over time - something Albert Einstein called the eighth wonder of the world. Compounding involves earning returns on gains that you have already made, which creates a snowball effect that can be very powerful over the long-term. If you invest £200 a month for 20 years and get an average 5 per cent annual return, then you would end up with £92,500 at the end. Do the same thing for 30 years and you will pay in £24,000 more over the extra decade but end up with £201,000. Meanwhile, do it for 40 years and you will end up with £398,000. How to move from saving to investing Despite the potential for long-term returns, many who could invest are reluctant to do so. The reasons often given are that investing is too complicated, they do not want to risk losing money, or they aren't rich enough yet to invest. These are valid reasons, but they aren't cause to dismiss investing altogether. You will need some spare money to invest, but it is possible to start with a small sum each month. With some investment platforms this could be as little as £1 – and if you choose one that offers fee-free trading and no account fees, then your whole pound will go towards investing. Realistically, though, you need to put in a bit more to make it worthwhile – but this could be just £25 or £50 per month, for example. For those who have already built up savings pots and worry about investing them only for markets to all, my advice is to not think about it as an all-or-nothing affair. You can shift a small amount of your pot, maybe as little as 10 or 20 per cent into investments - ideally in a stocks and shares Isa for the tax benefits - and then see how that goes. If you like it you can invest more, if you don't you can swap back. You could find at some time find some of your investments are down on the price you paid; but this risk is greatly reduced by long-term investing – and is one you must take for the prospect of a better return than on cash. Finally, it is true that investing does require a little work, but with a DIY investing platform, it is surprisingly easy to get started. Why invest instead of sticking with cash saving After years in the doldrums, interest rates have risen sharply and it's now possible to get a decent return from a savings account again. So, why would you invest instead? This is the question even the most committed of investors will have ended up asking themselves over the past couple of years, as the best savings rates topped 5 per cent and the prospect of such a guaranteed return proved tempting. For me, the answer lies in the wealth of evidence that shows investing in the stock market has proven to be the best way to grow your wealth above inflation over the long-term. There are several authoritative long-running studies that show this. My preferred one is the Barclays Equity Gilt Study, which shows the UK stock market returned an average annual return of 4.8 per cent above inflation over the 124 years to 2024. Meanwhile, the US stock market delivered a real average annual return of 6.7 per cent over its longest measured period in the study of 98 years. Don't forget, these are what's known as real returns, so above inflation and reflect genuine growth in wealth. And remember that while cash rates look attractive now, for most of the past 15 years they languished at much lower levels. Last year, the global stock market as measured by the MSCI World index returned 19 per cent, the US S&P 500 returned 23 per cent, and the UK's FTSE All Share returned 9.5 per cent. You shouldn't expect to make money in any given year from investing but do it long-term and the evidence shows it has beaten cash. There's no guarantee this will continue, but the collective ability of companies to put money to productive use and turn a profit lies behind the theory of long-term returns. Investing can be very easy And investing doesn't have to be complicated. There's an easy way to become a long-term investor and that is through a simple, cheap ETF or global tracker fund, which can invest in the stock market. You can then balance your risk with a cheap government bond fund, or by holding some cash. Alternatively, you can get more involved if you like and pick individual shares, funds, investment trusts or ETFs that allow you to back what you think will do well. Whichever option you choose, the great news is that investing these days can be done easily at a very low cost – allowing you to reap the rewards and lay the foundations for a better financial future. Five tips for investors Invest regularly and think long-term: Studies show that the longer you invest for, the lower your chance of losing money over any given time period. Regular monthly investing allows you to steadily build up your portfolio and avoid sudden lurches in the market that can affect lump sums invested. Acknowledge your emotions: Greed and fear are the emotions that trigger rash investing behaviour, but it is only natural to feel them. Accept that these feelings - often triggered when markets slump or soar - are part and parcel of being human but remember you can control whether you react. Don't put all your eggs in one basket: Investors are told to diversify for a reason. A diversified portfolio will still fall but can protect you when market storms arrive. Don't be over-exposed to one stock, fund, sector or market. And remember, holding ten companies that do similar things is not diversification. Don't constantly check: Investing is for the long-term, so checking in on a daily basis is a recipe for trouble. If you do check your portfolio and feel compelled to act, don't do so immediately. Take a step back, discuss what you are thinking of doing with someone, or write it down - evaluate it carefully and consider if it's the right move. Be bold when others are fearful: Treat market falls as an opportunity to buy investments at lower prices. Flip things around and think of it as the stock market being on sale rather than your investments being in a slump.
Yahoo
10 hours ago
- Business
- Yahoo
Homesafe Wealth Release Reaches 5,000 Retiree Milestone
SYDNEY, AU / / July 23, 2025 / Homesafe Wealth Release has achieved a major growth milestone, supporting more than 5,000 Australian homeowners in retirement by enabling them to unlock the equity in their homes-without taking on debt or downsizing. As inflation pressures mount and many retirees face inadequate superannuation balances, Homesafe Wealth Release has emerged as a trusted solution for financial independence. The innovative equity release product allows homeowners aged 60 and above to access a portion of the value in their property, without incurring interest or regular repayments. Debt-Free Equity Access for Retirees Homesafe Wealth Release is a purpose-built financial product that provides a lump-sum payment in exchange for a pre-agreed, capped share of the home's future sale proceeds. Clients retain full legal ownership and the right to live in the property for life. Unlike traditional reverse mortgages, the Homesafe Wealth Release model involves no interest, no ongoing repayments, and no requirement to move or downsize-offering retirees greater freedom and peace of mind. "Many older Australians are in homes that have risen significantly in value, but they lack sufficient income or savings to live comfortably," said Dianne Shepherd, Managing Director of Homesafe Solutions Pty Ltd. "Homesafe Wealth Release offers a safe and responsible way to access that wealth without sacrificing homeownership or stability." Building Confidence in Retirement Planning Since its founding in 2005, Homesafe has built a strong reputation for ethical finance, transparency, and consumer protection. The company's mission is to give retirees a secure way to convert housing wealth into accessible funds, while safeguarding their ability to remain in their homes. National figures show many Australians retire with less than $200,000 in superannuation, while the median home value often exceeds $1 million-highlighting the need for solutions like Homesafe Wealth Release in bridging the retirement funding gap. "At every stage of our process, we prioritize respect, trust, and clarity," added Shepherd. "We understand that people aren't just releasing equity-they're making deeply personal financial decisions." Impact Reflected in Client Experiences Thousands of retirees have experienced the real-world benefits of Homesafe Wealth Release: "Homesafe allowed us to stay in our treasured family home. There was no need to downsize, and we had the freedom to do what we wanted in retirement," shared Rhona, a Homesafe client. "The process was simple and easy to understand. It gave me peace of mind and enabled us to get on with our lives," said Hank, another satisfied client. "I had heard about Homesafe and that I could access equity in my property to pay off my debts. Homesafe was easy to deal with, and they were interested in helping me," noted James, who used the solution to regain financial stability. These testimonials reflect the program's ability to provide practical solutions in challenging financial environments. Future Growth Aligned with Market Needs As Australia's population ages and property values remain strong, Homesafe Wealth Release is positioned to serve a growing number of retirees seeking reliable, flexible retirement funding. With its commitment to transparency, security, and customer-focused design, Homesafe continues to reshape how Australians think about retirement income and home equity access. About Homesafe Wealth Release Homesafe Solutions Pty Ltd, based in Melbourne, is the creator of the Homesafe Wealth Release product-a first-of-its-kind, debt-free equity release solution designed to help older homeowners access the value in their homes without interest or repayments. Since launching in 2005, the company has empowered over 5,000 retirees to improve their financial wellbeing while remaining in their homes for life. Website URL - name - Homesafe Solutions P/LEmail address - info@ - Sydney, SOURCE: Homesafe Solutions P/L View the original press release on ACCESS Newswire Sign in to access your portfolio
Independent Singapore
18 hours ago
- Business
- Independent Singapore
IT worker wants to take a yearlong break from corporate world, asks for advice
SINGAPORE: A local Reddit user who is looking to take a rather lengthy break from work asked for advice on the platform, wondering if anyone could share their experiences if they've taken the same journey. In a post from earlier this week on r/singaporefi, u/anon_43 wrote he is an IT worker in his 40s and is family's main breadwinner. Their household's total monthly income is S$12,000, and he and his wife have two children, ages 5 and 8. He went on to say that their household's essential expenses are at S$4,000 a month, and that their HDB flat and car are fully paid. They have S$250,000 to S$300,000 mostly in dividend stocks. He also described himself as 'a bit jaded from the corporate world' and would like to see if he can do something more fulfilling. At this point, however, as he doesn't know what he is really looking for, he wants to take a yearlong break to 'recharge and reflect.' Fortunately, his company allows this and he can go back to work with them, but possibly in a different role or team. Moreover, his family is supportive of his plan. But since he doesn't want to spend too much of their savings during his break, he's thinking of doing side gigs such as working for Lalamove, and added that he has experience in WordPress site, mobile app dev, creating marketing content such as infographics and doodle animation video. 'Would like to hear from anyone with similar experience who took a break. Can you share your experience? Any regrets? Love to hear any suggestions on how to earn some side income. Thanks, folks!' A number of commenters on the post, wary of the uncertain job market, were not very encouraging regarding taking such a long break from work. One asked if the post author can get the guarantee that he'll get his job back after a year in writing, while another suggested he shorten his sabbatical to three months instead of a year. 'Unfortunate reality is that you probably do not have enough to call for FIRE (financial independence, retire early), and 30-40 are your peak earning years. Your skill sets for side hustles are now easily done by AI. Investment is the way to go to be honest, but also to each your own,' one wrote. See also 4 easy steps to bootstrapping your startup brand Another said he could consider 'upskilling and receive a training allowance up to $3000 per month for selected full-time courses under SkillsFuture. 'I've done the whole sabbatical thing 2x in the past 10 years, always found a corporate job after but found it unfulfilling again, so break again and rinse repeat. I believe there's a term for this now – micro-retirement.' 'I can empathise with OP as the hamster/rat race in Singapore is relentless. 'OP, because you have young kids, try for a sabbatical first. 3-6 months, maybe do some travelling during this time to reframe and reconnect with yourself. If cost is an issue, neighbouring countries are inexpensive,' another wrote. A Reddit user who urged the post author to plan carefully for his break and the steps after that wrote, 'Pull the trigger with the expectation that there will not be a job after you 'come back' from the sabbatical. That puts your mind to work on considering the question of 'what next'. Your answer will help add clarity to your assessment of your situation.' However, a commenter in pretty much the same boat encouraged him to go for it. 'Kinda same position as you right now. Sole breadwinner ($14k/month) while my husband is starting up his online business, plus 1 kid. I say forget what people here advise you. As long as your spouse and family members are supportive, then go ahead, as ultimately they will be affected by the situation, not anyone here. If they are not, then rethink it or address their concerns. 'I personally would go down to part-time like 3-day week or half-days, as you'll still earn enough to cover your basic expenses, and spend more time with the kids and be involved in their lives while they are at this age.' /TISG Read also: 'Is this even legal?': Woman on sabbatical terminated by company after learning she was pregnant
Independent Singapore
2 days ago
- Lifestyle
- Independent Singapore
'Two jobs, no life — Is this hustle culture or just slow suicide?'
SINGAPORE: For the past three months, a Singaporean has lived a life that many would call 'extreme' and damaging. In an honest and very revealing post, the poster shared how he's been working two full-time jobs nonstop — an exhausting 8 p.m. to 8 a.m. night shift, followed by a 9 a.m. to 5 p.m. day job. That's a full 24 hours of work with hardly time to breathe, and just one day off a week. The motivation is financial independence. This Redditor is resolute in wiping out his financial liabilities, building up savings, and starting to invest. 'I don't see any chance of getting a job that pays S$4k to S$5k, let alone hitting the S$10k mark with just one job,' he wrote. 'So, I'm working two jobs to beat that ceiling.' Each month, when the salaries come in, there's a sense of pride — a concrete prize for persistent determination, but the effect on the body and mind is obvious. 'My body? It's beaten, running on low battery. I look like I have cancer, pale, exhausted, like a zombie. I feel drained all the time,' he shared. Heart tremors, anxiety, and seclusion have become routine. 'Is this sacrifice worth it?' he asked. 'Has Singapore become like this?' Empathy, tough love, and reality checks One response zeroed in on the blatant health hazards: 'How much sleep are you getting? Success amounts to nothing when your health suffers, and you can't enjoy what you worked hard towards.' The commenter advised the original poster to re-examine his approach now that the debt has been settled, and to make rest and upskilling the priorities. Another netizen provided a frank but vital reality check: 'No, Singapore hasn't 'become like this'. It's your own choice to live like this. You could've taken longer to clear your debt by working one job. This is not a success. This is self-destruction.' A recurring theme emerged from the readers' reactions — the difference between short-range gains and continuing sustainability. Many commented that dashing for a financial target without considering physical and mental well-being is a hazardous move. 'This isn't what success feels like, this is what stupidity feels like — something which will dawn on you when you're lying in a hospital bed,' one Redditor said. Others recommended a few options — upskilling, side hustles, or concentrating on building a single career path instead of grinding out two jobs in an unmanageable twist. 'The aim isn't to grab on to whatever money you can now. The aim is to build a life and career such that money finds you.' When hustle culture turns toxic Underneath the real-world advice and frank commentaries are deeper issues — the pressure of combating financial uncertainty and meeting societal expectations. The Redditor's story resonates with many young adults who are stuck between stagnant salaries, escalating prices, and the craving to become financially independent. However, as several netizens pointed out, forfeiting sleep, physical strength, mental well-being, and happiness for the sake of a somewhat quicker climb out of debt is not a sustainable or honourable path. Success, one commenter said, isn't about working yourself to death. 'Job success is when you get paid to do nothing. When something goes wrong, you fix it to remind people why you're paid highly.' It's about leverage, not hundreds of hours worked. To those grinding themselves into dust, one netizen asked – 'Is this the life you want? Because if your body breaks down before you reach your goals, none of that money will matter.' Sometimes, the most heroic act isn't crushing through the pain — it's stopping long enough to rebuild, re-evaluate, and pick a better path onwards.
Independent Singapore
2 days ago
- Business
- Independent Singapore
'Still scraping by at 30': Singaporeans open up about living paycheck to paycheck
SINGAPORE: 'Every pay after offsetting important bills makes me feel like I'm back to square one.' That's how one Reddit user summed up their 20s — a decade often associated with self-discovery and financial independence. For some Singaporeans nearing 30, it's more about survival. In a candid post on the subreddit r/askSingapore, one user asked others in the same boat: 'Singaporean adults with barely any savings — how are we coping?' Their story was all too familiar. After switching jobs twice in three years and having pay raise requests rejected, they now have less than S$10,000 in savings. They've cut out all non-essentials — Netflix, gym, even Disney+. A new laptop for school wiped out what was left. To make matters worse, they now have to foot the household WiFi bill too. 'I literally have to take action because waiting will do no good. Depressing… but I'm glad I'm not alone.' And they aren't. Scrimping just to stay afloat Others chimed in — not just with sympathy, but hard-won survival tips. From meal-prepping frozen chicken and hunting for CDC voucher deals, to giving up gym memberships in favour of long walks. Singaporeans shared how they stretched every dollar: 'Raid the fridge. Go for JB runs. Intermittent fasting — but at your own risk, and if all else fails, lose face, and ask for help.' One user, self-described as 'thick-skinned,' said it bluntly: 'You shouldn't have to live like this. You need to find a way out, not just to survive, but to build towards something better.' But what if surviving is the first step? Not all advice came from peers. One older Redditor — a man nearing 50 — offered a different kind of perspective: time. 'I'm probably too old to truly understand what you younger folks are going through… but I'll just share a little about my own journey.' He recounted a path marked by financial instability: kicked out of JC, scraping by on a S$1,400 salary, and turning 30 with barely S$5,000 in savings. He got married with almost nothing in the bank — his wife had to pay for their wedding rings. Still, he stuck with it. One job led to another. Eventually, years later, he was able to consider early retirement — something his younger self never thought possible. 'If you're struggling now, don't be too hard on yourself. Sometimes all you can do is survive one day at a time, and that's perfectly okay. Jiayou.' His message hit home with many — struggle is not a measure of failure. It's part of a larger story still unfolding. When the cost of living is your main character Singapore may boast one of the world's highest gross domestic products (GDPs) per capita, but for many on the ground, that prosperity feels increasingly out of reach. Eighty-five per cent of tenants say rent is unaffordable , while commercial retailers have reported rent hikes of up to 57% . At the same time, youth unemployment climbed to 12.9% in 2024 , and a preliminary Ministry of Manpower (MOM) study shows that just 51.9% of fresh graduates were employed as of June — a modest rise from 47.9% the year before. In such an environment, even the pursuit of basic stability can feel like an uphill battle. And in a society that normalises working 44.6 hours a week — among the highest globally — burnout is not an exception. It's the backdrop. Only one in four people in Singapore gets more than seven hours of sleep a night , and just 17% report sleeping through the night — a statistic the Lee Kuan Yew School of Public Policy has termed a public health crisis . Can Singaporeans still dream? Many of today's 20-somethings are juggling gig work, rising debts, and mental health struggles — all while being told to just keep trying. Still, there's a quiet defiance in their voices — not of resignation, but of constantly tested resilience. They're meal-prepping and picking up odd jobs off Telegram. They're helping their families while trying to help themselves.
