HM Revenue & Customs has fired a fresh warning shot at Britain’s flexible workforce, urging an estimated 700,000 umbrella workers, and the agencies and end-clients that engage them, to steer well clear of a rapidly growing scheme that claims, falsely, that personal IOUs can be used to settle a tax bill.
In a formal issue briefing published this month, the tax authority confirmed it has seen a sharp uptick in attempts to discharge PAYE and other liabilities using so-called ‘Bills of Exchange’
HM Revenue & Customs has fired a fresh warning shot at Britain’s flexible workforce, urging an estimated 700,000 umbrella workers, and the agencies and end-clients that engage them, to steer well clear of a rapidly growing scheme that claims, falsely, that personal IOUs can be used to settle a tax bill.
In a formal issue briefing published this month, the tax authority confirmed it has seen a sharp uptick in attempts to discharge PAYE and other liabilities using so-called ‘Bills of Exchange’. Promoters, many of them linked to the recruitment and payroll sectors, are marketing the arrangements as a legitimate, and in some cases, brazenly, as a government-endorsed, route to wiping out a tax debt.
They are nothing of the sort.
“HMRC does not accept Bills of Exchange against a tax liability,” the department said bluntly, adding that Organised Crime Groups are “particularly active” in the temporary labour space where the schemes are being aggressively pitched.
What is a ‘bill of exchange’?
The instrument itself is a creature of Victorian commerce, codified in the Bills of Exchange Act 1882. In plain terms, it is a written note from one party requiring another to pay an agreed sum to them or to a third party on demand or at a fixed future date — the original mercantile ‘IOU’.
Crucially, even a properly drafted Bill carries no obligation on the recipient to accept it as payment. As HMRC reminds anyone tempted to try, “the recipient has no legal obligation to accept it”. The tax authority has made clear that it will not — and never has — accept a Bill of Exchange against a tax liability.
How the scam works
According to HMRC, the playbook used by promoters is depressingly familiar to anyone who has tracked the procession of tax avoidance schemes named and shamed in recent years. The pitch typically rests on four pillars:
A claim that a Bill of Exchange can legally settle a debt with HMRC, in place of cash.
Assurances that workers can sidestep PAYE or other employment tax obligations using the arrangement.
A hefty fee, sometimes wrapped up as a ‘membership’ or ‘administration’ charge, to join or operate the scheme.
Misleading suggestions that the model is HMRC-compliant or, more outrageously, government-backed.
Variations on the theme reference money orders, Public Trusts, Merchant Law and Negotiable Instruments, pseudo-legal language designed to give a thin veneer of sophistication to what amounts to a refusal to pay.
Why this matters for sme owners
For the small and medium-sized businesses that make up the backbone of the UK economy, the risks extend well beyond the individual workers being targeted. With incoming rules from April 2026 making recruitment agencies and end-clients jointly and severally liable for PAYE where an umbrella company sits in the labour supply chain, SMEs that engage contingent workers will be in the firing line if non-compliance is found further down the chain.
Put bluntly, a hospitality group using agency staff, a logistics firm bringing in temporary drivers, or a professional services partnership hiring through an umbrella could end up footing the bill if a Bill of Exchange scheme is later unwound, even if the directors never knew it existed.
Seb Maley, chief executive of compliance specialist Qdos, said the warning was a timely reminder of how exposed the supply chain has become.
“HMRC’s warning highlights the very real dangers that tax avoidance schemes continue to pose, not just to the some 700,000 people that work through umbrella companies but also the businesses that engage them,” he said.
“Bills of Exchange are marketed as legitimate, or even falsely HMRC-approved, despite being anything but. And the truth is, they can leave anyone who uses them with massive tax bills, penalties and years of uncertainty.”
A recurring theme
The Bills of Exchange alert is the latest in a long line of HMRC interventions against schemes targeting the contractor and umbrella market. As the Institute of Chartered Accountants in England and Wales has noted, the recurrence of these models, repackaged with new language but the same flawed mechanics, points to a stubborn problem at the lower end of the labour supply chain.
It also lands at a moment when IR35 and broader off-payroll rules continue to weigh heavily on Britain’s freelance economy. With tax pressures already cited by contractors as their single biggest concern, the proliferation of dubious ‘solutions’ promising to ease the burden is hardly surprising — but the consequences for those drawn in can be severe.
What businesses should do now
Owner-managers and finance directors engaging temporary labour are being urged to:
Audit their supply chain and confirm the tax status of every umbrella provider in use.
Refuse to deal with any operator promoting Bills of Exchange, money orders or ‘negotiable instrument’ structures as a means of settling tax.
Encourage workers to check payslips against HMRC’s own pay-checker tool, and to flag anything that looks too good to be true.
Take advice from a qualified tax professional, not an agency salesperson, before signing up to any payroll model that promises unusually high take-home pay.
HMRC has urged anyone already caught up in a Bills of Exchange arrangement to come forward and make a disclosure, warning that those who do not act may face enforcement action, interest, penalties and even insolvency proceedings.
For SME owners, the message from the Revenue could hardly be plainer: if the promoter says it’s a clever way around the rules, it almost certainly isn’t.
SINGAPORE: The squeeze of the rising cost of living has reached even affluent households in Singapore.
According to Singapore Business Review, citing Sun Life Asia’s third “Financial Resilience Index: Asia Navigates Rising Costs” report released on Tuesday (June 9), rising living costs have affected all income groups, including high earners.
Among high-net-worth individuals (HNWIs) earning at least S$250,000 a year, nearly eight in 10 (76%) said inflation made it more difficult to cover their mo
SINGAPORE: The squeeze of the rising cost of living has reached even affluent households in Singapore.
According to Singapore Business Review, citing Sun Life Asia’s third “Financial Resilience Index: Asia Navigates Rising Costs” report released on Tuesday (June 9), rising living costs have affected all income groups, including high earners.
Among high-net-worth individuals (HNWIs) earning at least S$250,000 a year, nearly eight in 10 (76%) said inflation made it more difficult to cover their monthly expenses, while nearly six in 10 (59%) said they would likely need to make moderate to significant changes to their lifestyle if living costs continue to rise.
Still, seven in 10 HNWIs reported feeling financially secure. Nearly three in 10 (27%) also believe they could last a year without income.
The share of highly resilient households in Singapore fell to 21%, from 34% last year. Low-resilience households also more than doubled to 20%, from 9% a year earlier.
Highly resilient households were defined as those that feel financially secure, plan at least five years ahead, are prepared to cope with a financial emergency, consider themselves financially literate, and are confident of meeting their long-term financial goals.
Low-resilience households, meanwhile, tend to feel financially insecure, plan only a few months ahead or not at all, are unprepared for financial emergencies, rate their financial literacy poorly, and lack confidence in achieving their long-term financial goals.
The report also found that only one in 10 respondents feels very secure financially, compared to two in 10 last year.
Rising everyday costs, including groceries (95%), utilities (94%), transport fuel (92%), cooking fuel (91%) and healthcare (91%), remain the biggest concerns among households. Over the past six months, respondents said the costs of food and groceries (80%), utilities (58%) and transport (55%) increased the most.
When asked about their top financial priorities over the next 12 months, they cited daily expenses (55%), retirement savings (44%) and building an emergency fund (37%).
More than half (52%) of respondents also said the rising cost of living remains a barrier to improving their financial control.
While 69% believe having sufficient savings is critical to achieving financial security, only 41% said they could survive without income or external support.
Respondents said they have been cutting back on non-essential spending (54%), tapping into their savings (24%), reducing essential expenses (24%), and pausing retirement contributions (14%) to cope.
Still, those with higher financial literacy were found to be more confident (+44 percentage points) and more optimistic (+41 percentage points) about their financial future, although seven in 10 respondents rated their financial literacy as basic or below basic.
In terms of financial decision-making, 53% use generative artificial intelligence (AI) tools occasionally, with usage expected to rise to 55%. Among HNWIs, 74% already use the tool regularly, while 69% expect to use it more. /TISG
SINGAPORE: More Singaporeans are aiming to save over a million dollars and retire in their 40s, according to a joint study by CIMB Singapore and Nanyang Technological University (NTU), titled the “Attitudes and Beliefs towards Financial Independence Report”, which gathered responses from over 1,000 Singapore residents aged 18 to 60.
Now, 56.3% of Singaporeans are aiming to save over S$1 million to gain financial independence, compared to 52.3% last year. Meanwhile, 35.8% said between S$1 million
SINGAPORE: More Singaporeans are aiming to save over a million dollars and retire in their 40s, according to a joint study by CIMB Singapore and Nanyang Technological University (NTU), titled the “Attitudes and Beliefs towards Financial Independence Report”, which gathered responses from over 1,000 Singapore residents aged 18 to 60.
Now, 56.3% of Singaporeans are aiming to save over S$1 million to gain financial independence, compared to 52.3% last year. Meanwhile, 35.8% said between S$1 million and S$2.5 million would be the “sweet spot”.
It also found that Singaporeans are now looking to retire in their 40s instead of their 50s, which was the norm last year, as reported by The Edge Singapore.
In fact, Gen Zs, the younger generation known for breaking the norm, are aiming to achieve financial freedom in their 30s, with some even as early as their 20s.
However, only 46.4% said they have started planning for retirement, held back by competing priorities (42.2%), not knowing where to start (34.4%), and believing it is still too early (31.9%).
While 78% believe financial freedom is attainable, only 36% are “moderately confident,” while 34.6% said they constantly feel anxious about their financial future.
Among generations, Millennials, whose main focus is building wealth (27%), were found to be the most confident about achieving financial independence, with 91.2% already having financial independence plans.
On the other hand, Gen Zs, who are aiming to retire earlier as they value autonomy and control over income and spending (25.7%), were found to be the most anxious (41.2%).
Gen X, who insist on living debt-free (20.1%), sits in the middle, with 38.3% saying they often feel anxious and 30.5% feeling strongly confident.
Singaporeans mentioned the same struggles holding them back: high cost of living (70.7%), low income (54.0%), and family responsibilities (53.4%). Others also cited concerns over market volatility (32.8%), limited financial education (28.2%), and lifestyle pressures like shopping (22.8%). /TISG
When you embark on a transaction to sell your business, you’ll find that the world of mergers and acquisitions (M&A) demands preparation, precision, and purpose. Successfully navigating an M&A deal for a private company forces you to understand both business and legal dimensions and to engage the right advisors, set the right timetable, and anticipate the key pitfalls. Below are 32 critical issues to consider for sellers to maximize value and minimize risk in a private-company M&A de
When you embark on a transaction to sell your business, you’ll find that the world of mergers and acquisitions (M&A) demands preparation, precision, and purpose. Successfully navigating an M&A deal for a private company forces you to understand both business and legal dimensions and to engage the right advisors, set the right timetable, and anticipate the key pitfalls. Below are 32 critical issues to consider for sellers to maximize value and minimize risk in a private-company M&A deal.
1. Time
In private-company M&A transactions, time is often the enemy of the seller. As the process drags on, prices and terms typically deteriorate, and new issues—unforeseen liabilities, market shifts, regulatory surprises—may emerge. Speed matters. Set a driving timetable and maintain momentum. Let your lawyers know that they need to turn around drafts of documents on an expedited basis. Make sure the key decision-makers on each side are available to quickly resolve key issues.
2. Competitive Process
Running a competitive auction or soliciting multiple potential buyers is one of the best ways to optimize sale value and deal terms. It gives a seller leverage, benchmarks of value, and the ability to fend off low‐ball or unfair offers.
3. Due Diligence Preparation
Sellers have to understand that they will be subject to an extensive due diligence investigation, and they must be prepared in advance for all that entails. The buyer will want to see detailed financial statements, copies of all material contracts, information on key intellectual property, employee and benefit arrangements, and much more.
Normally, the seller needs to have all of that information in an online data room, which can be quite time-consuming to get correct and complete. Sophisticated bidders will tell the selling company that preparing a comprehensive and well-organized online data room is important.
There are outside companies, such as SBS, that can significantly help with this burden.
4. Non-Disclosure Agreement (NDA)
Before sharing sensitive information, ensure prospective acquirers sign a strong non‐disclosure agreement that prohibits solicitation of employees and protects your confidential business data. This is especially important if a potential buyer is a competitor.
5. Investment Banker or Advisor
Retaining a seasoned investment banker or M&A advisor significantly improves your process. Negotiate the engagement letter carefully—fees, tail provisions, indemnification and negation of conflicts should be crystal clear.
6. Judgment
Good judgment is essential when negotiating an M&A deal. You must know what matters—and what doesn’t—and be ready to make quick decisions. Recognize when to trade lesser points in order to protect the big ones: value, structure, and risk allocation.
7. Exclusivity
Buyers often push for exclusivity early to avoid competition. From a seller’s standpoint, you should delay granting exclusivity until the buyer has committed to key terms (e.g., via a letter of intent), and negotiate short exclusivity windows (e.g., 15 to 21 days) rather than long ones (45+ days).
From the seller’s perspective, it will want the exclusivity period to terminate early if the buyer proposes a lower price or any other worse terms than detailed in the letter of intent. The seller will also want to make sure that any extension of the exclusivity period requires that the buyer affirm its price and terms and that they have completed their due diligence.
8. Letter of Intent (LOI)
Negotiate a detailed LOI that sets the stage for key deal terms—price, payment structure, escrow/holdback, indemnities, closing conditions, employee issues, and dispute‐resolution mechanisms. A strong LOI improves your leverage pre-closing. See Negotiating An Acquisition Letter of Intent.
David Lipkin, an M&A partner at McDermott Will & Schulte, advises, “Getting the Letter of Intent right is crucial to ensure a favorable outcome in an M&A deal.”
9. Price and Type of Consideration
The price and type of consideration are issues that will need to be addressed early in the process, and these go beyond agreeing on the “headline” price. Here are some of these issues:
Whether the purchase price will be paid entirely in cash payable in full at the closing.
If the stock of the buyer is to represent part or all of the consideration, the terms of the stock (common or preferred), liquidation preferences, dividend rights, redemption rights, voting and Board rights, restrictions on transferability (if any), and registration rights.
If a promissory note is to be part of the consideration, what the interest and principal payments will be, whether the note will be secured or unsecured, whether the note will be guaranteed by a third party, what the key events of default will be, and the extent to which the seller has the right to accelerate payment of the note upon a breach by the buyer.
Whether the price will be calculated on a “debt-free and cash-free” basis at the closing of the deal (enterprise value) or whether the buyer will assume or take subject to the seller’s indebtedness and be entitled to the seller’s cash (equity value).
Whether there will be a working capital-based adjustment to the purchase price, and, if so, how working capital will be calculated. This is ultimately just an adjustment up or down to the purchase price. The buyer may argue that it should get the business with a “normalized” level of working capital. The seller will argue that if there is a working capital adjustment clause, the target working capital should be low or zero. This working capital adjustment mechanism, if not properly drafted or if the target amounts are improperly calculated, could result in a significant adjustment in the final purchase price to the detriment and surprise of the adversely affected party.
If part of the consideration is comprised of a contingent earnout arrangement, how the earnout will work, the milestones to be met (such as gross revenues or EBITDA and over what period of time), what payments are to be made if milestones are met, what protections will be offered to the seller to enhance the likelihood of the earnout being paid (such as acceleration of payment of the earnout if the business is sold again by the buyer), information and inspection rights, and more. Earnouts are complex to negotiate and tend to be the source of frequent post-closing disputes and sometimes litigation. Precision in drafting these provisions and agreement on suitable dispute resolution processes are essential.
10. Lawyers
Your ordinary outside counsel may not be sufficient for a complex M&A transaction. Engage dedicated M&A counsel with experience in private company deals—someone who can handle the urgency, negotiation, documentation, and closing efficiently. You want someone who has done hundreds of M&A deals.
11. Strategic Partners
Strategic acquirers (those already operating in your industry) may offer benefits—synergies, higher valuations—but you must understand how your business fits into their strategic plan. Be cautious about rights of first refusal or preferential treatment granted in earlier financing rounds.
12. Disclosure Schedule
Preparing the disclosure schedule (the list of contracts, intellectual‐property assets, litigation, employment matters, etc.) is time‐consuming and typically requires many drafts — you should begin early. A well-prepared schedule reduces post-closing indemnity claims and uncertainties.
13. Fiduciary Duty
Board members of a seller company must understand their fiduciary duties, manage conflicts of interest, and document thoughtful decisioning. Ignoring governance issues can harm both value and deal certainty.
14. Shareholders
Identify shareholder approval requirements early. Are dissenting shareholders or appraisal‐rights issues likely? Will all classes of stock vote? Delays or objections at the shareholder level can sink a deal after terms have been agreed.
15. M&A Committee
Establishing an M&A committee of the board can improve agility and decision‐making. A nimble committee ensures issues are addressed quickly, reducing drag on the process.
16. Employee and Management Issues
Employee retention, incentives, and management continuity matter to both buyer and seller. Ensure key personnel are incentivized and consider tax impacts (e.g., Section 280G “golden parachute” issues). Consider how unvested options will be treated.
Buyers will assess culture fit and may want to implement retention programs.
Buyers scrutinize your financial projections, assumptions and growth metrics. You, as a seller, must understand and defend your numbers—and demonstrate that management continues to run the business well during the M&A process.
18. Intellectual Property (IP)
In an era of digital disruption, IP diligence is intensive. Patents, trademarks, copyrights, domain names, open‐source software use, data privacy and cybersecurity issues must all be addressed proactively.
19. Incomplete Records
Missing corporate minutes, missing amendments to contracts, incomplete option agreements, and disorganized documentation can slow or kill a transaction. Address these issues early.
20. Consents
Check what third‐party consents are required (landlords, licensors, major customers) and aim to eliminate or minimize problematic consent requirements. It's a frequent source of delay or renegotiation.
21. Disclosure Timing
Striking the right balance in disclosure is important: give the buyer enough information early to avoid surprises, but avoid over‐sharing early such that you lose leverage or risk competitive information exposure.
22. Definitive M&A Agreement
The definitive acquisition agreement is hugely important to both the seller and the buyer. There are many issues that need to be negotiated, and sophisticated M&A counsel is essential for the seller.
Some of the more important issues include:
Will there be an escrow or holdback of the purchase price or will the buyer solely rely on representations and warranties insurance, and if there is an escrow, will the escrow serve as the sole remedy for a breach of the acquisition agreement?
What are the scope of the seller’s representations and warranties and how many can be qualified by “knowledge” and “materiality” caveats?
What are the covenants of the seller and any shareholders prior to closing and after the closing? Will there be any problematic non-compete covenants?
What are the key conditions to closing the deal?
How are various risks allocated, such as litigation, intellectual property issues, unknown liabilities, etc?
How will employees be treated?
What are the indemnification obligations of the parties?
How can the M&A agreement be terminated before a closing and what are the financial consequences?
What regulatory requirements (such as antitrust approvals) must be satisfied before closing and what issues will these raise?
How are disputes to be resolved (e.g., by arbitration)?
Richard Smith, an M&A expert at Orrick, Herrington & Sutcliffe says, “The importance of a well-drafted M&A agreement cannot be understated to ensure a successful and expeditious deal.”
23. The CEO’s Role
The CEO’s role in an M&A process is hugely important. The CEO has to sell the vision for the business and clearly articulate why the company is such an attractive and growing business with sophisticated and differentiated technology, products, or services.
The CEO must have an understanding of the fundamental legal and business issues that will arise and be able to make many judgment calls on those issues.
The CEO also needs to keep the Board, the M&A Committee, and key investors informed at each key stage of the process.
The CEO is often put in a difficult position—to negotiate tough on key terms of the deal, knowing that he or she is negotiating with a future employer and not wanting to be perceived as difficult; this problem is exacerbated if the buyer is a private equity investor offering the CEO and other members of management a piece of the post-closing equity.
That is why it may be better for an advisor or the M&A Committee of the Board to take the lead in negotiating the deal terms/acquisition agreement, which then permits the CEO to act as a facilitator to get the deal done.
24. Shareholder Representative
Post‐closing responsibilities often fall to a shareholder representative or third-party administrator (such as Fortis)—someone who handles escrow administration, working‐capital adjustments, earnout monitoring, and indemnification mechanics.
25. Deviations from Projections During the M&A Process
Since an acquisition process can take a significant period of time to complete. One issue that can come up is the variability of the financial performance of the business while the M&A deal is pending.
If the seller misses its projected financial numbers during the process, a buyer can see this as a red flag and require a reduced purchase price or may even terminate the negotiations.
Therefore, it is imperative that the management team keeps its eye on the ball in running the business (even though they will be distracted by the M&A process), and that the projections presented to the buyer for the anticipated diligence and negotiating period be easily obtainable.
26. Cultural Integration Planning from Day One
Successful M&A isn’t just about deal documents—it’s about people and culture. Even during diligence, consider how management teams, employee morale, and organizational culture will merge post-closing. Early integration planning reduces risk of “implementation gap” and protects value.
27. Regulatory & Antitrust Early Screening
Don’t assume your deal is immune from regulatory or antitrust review just because you are a private company. Early assessment of competition, foreign investment (CFIUS in the U.S.), sector‐specific regulation, and cross-border risks helps avoid costly surprises after signing.
28. Cybersecurity & Data Privacy Risk Management
With cyber threats on the rise, buyers expect thorough cybersecurity and data privacy controls. A major breach or insecure data architecture revealed late in the process can scuttle a deal or trigger post-closing liabilities. Ensure your policies, incident history, and remediation plans are ready.
29. Post‐Closing Value Preservation Mindset
The deal typically doesn’t end at closing. Sellers should understand earn‐out triggers, covenant compliance, holdbacks, and post‐closing obligations. Maintain oversight (or negotiate retention of a post-closing role) to ensure smooth transition and protect earned value.
30. Leverage Artificial Intelligence (AI) in the M&A Process
AI is transforming M&A. AI tools can:
Analyze and summarize massive diligence documents faster
Model valuations and forecast synergies
Detect contractual inconsistencies or red-flag clauses
Streamline post-merger integration with data-driven insights
Sellers who embrace AI analytics, deal-readiness dashboards, and machine-learning-driven risk assessments gain a competitive advantage in speed, precision, and transparency. In modern M&A,AI isn’t replacing advisors—it’s amplifying them.
31. The Importance of Sell Side Quality of Earnings Report
Many buyers, especially if third-party lending is involved, will engage a reputable accounting firm to assess the seller’s underwriteable EBITDA. Nick Baughan, Managing Director of the investment banking firm MarksBaughan, advises that a seller should consider hiring its own accounting firm to prepare its Quality of Earnings Report in advance. A Quality of Earnings Report is an analysis that assesses a company's historical and current financial performance to determine the sustainability and reliability of its earnings.
There are two reasons for the seller to prepare its own report in advance: The seller can position the best and most supportable view of EBITDA, and the seller is then equipped to expeditiously engage with the buyer's accounting firm. A huge time sink and value destroyer in deals is an under-prepared founder or CFO trying to respond to a team from the buyer’s accounting firm whose highly-experienced partner is looking to reduce EBITDA for valuation purposes.
32. The Increasing Importance of Reps and Warranties Insurance
Many deals now have M&A reps and warranty insurance (RWI). Some buyers will still try to push for a holdback or escrow to cover indemnification obligations of the seller, but the RWI market has evolved to the point where a deal over $20 million in enterprise value is typically better off with RWI, reducing the risk to the seller. The cost of the policy is small and can either be split or entirely borne by the buyer. The negotiation of the representations and warranties in the acquisition agreement typically happens more quickly and that time savings is more than made up by the time lost getting the RWI policy implemented.
Final Thoughts on Private Company M&A Deals
In today’s market, selling your private company successfully in a mergers and acquisitions transaction hinges on preparation, transparency, strategic process and risk management. From building momentum and creating competitive tension to organizing your data room and preparing for integration, each of these 32 factors plays its part.
Engage seasoned advisors and technology solutions, adopt a disciplined timeline, maintain business performance, understand the transaction mechanics, and anticipate post-closing realities. With those principles in place, you’ll be in the strongest position to maximize value, minimize surprises, and execute a smooth transition.
SINGAPORE: Has seeing others flaunt their savings, property purchases, and investment successes online left many young adults questioning their own progress?
Recently, a 29-year-old Singaporean who has less than S$30,000 in savings took to Reddit to ask fellow locals whether her financial situation is actually normal, or whether social media has simply distorted her perception of what financial success should look like.
In her post on the r/askSingapore subreddit on Friday (Apr 29), she shared
SINGAPORE: Has seeing others flaunt their savings, property purchases, and investment successes online left many young adults questioning their own progress?
Recently, a 29-year-old Singaporean who has less than S$30,000 in savings took to Reddit to ask fellow locals whether her financial situation is actually normal, or whether social media has simply distorted her perception of what financial success should look like.
In her post on the r/askSingapore subreddit on Friday (Apr 29), she shared that she’s been having doubts about whether her savings “are considered very little or fairly normal” because she frequently comes across conversations about goals such as saving S$100,000 by 30, buying a first condo by 35, or achieving FIRE, short for Financial Independence, Retire Early, by 40.
She also noted that a friend of hers, a 28-year-old male, has even fewer savings than she does.
“I was chatting with my friend (28M) yesterday about finances, and he mentioned he basically has no savings at all (<$2k).”
“Feels like online standards can sometimes be quite disconnected from reality, or perhaps I just need to work harder.”
Wanting a reality check from actual humans instead of finance influencers with suspiciously perfect spreadsheets, she asked fellow Singaporeans a simple question: how much do people in their 20s and around 30 realistically have saved these days?
She also invited others to share details like their age range, rough savings or investments, whether CPF is included, and what they personally consider “normal” financially in Singapore today.
“Everyone’s timeline is different.”
In the comments, many Singaporean Redditors told the woman that comparing her finances with those of others was neither particularly useful nor healthy.
As the saying goes, comparison is the thief of joy.
One commenter wrote, “Honestly, I think you’re doing ok. Comparison online can get quite skewed because people usually only share their best numbers. Having close to S$30k at 29 is already better than many people, especially with Singapore’s cost of living now. Don’t stress too much about those ‘$100k by 30’ milestones… Everyone’s timeline is different.”
Another commented, “Most people in their late 20s are still recovering from uni, NS delay, weddings, BTO planning, lifestyle inflation, or just plain old vanilla inflation. Having emergency savings at all already puts you ahead of many, if not most.”
A third added, “If you really want to compare, then ask your peers at work or friends of similar age/industry. Reddit is very diverse, and people lie every now and then.”
Meanwhile, others decided to share their own financial situations to give the woman a better sense of what life looks like outside of social media success stories.
One user shared, “I am 32. I have about S$8k in savings left. The remainder went into starting my business, which isn’t yet at a state of earning money back. It is essentially my unpaid full-time job until it does. All these other people in the thread citing big numbers look like Martians from another world to me.”
Another wrote, “I am in my 50s with less than S$1000 in savings.”
A third user admitted, “Mid 30s with about $3k in savings. After paying bills, I’d usually have around $1k+ left in my bank account to last until the next payday.”/TISG
SINGAPORE: At 25 years old, one Singaporean has started to become anxious about the fact that he still has no savings at his age, unlike most of his peers.
On Monday (Jun 1), he posted anonymously on an online forum called ‘r/singaporefi’, where users regularly discuss their savings, investments, and FIRE (Financial Independence, Retire Early) journeys.
Prefacing his post, the man admitted, “I know I am going to get thrashed in here, but I really feel lost now and need help, and I think it’s bet
SINGAPORE: At 25 years old, one Singaporean has started to become anxious about the fact that he still has no savings at his age, unlike most of his peers.
On Monday (Jun 1), he posted anonymously on an online forum called ‘r/singaporefi’, where users regularly discuss their savings, investments, and FIRE (Financial Independence, Retire Early) journeys.
Prefacing his post, the man admitted, “I know I am going to get thrashed in here, but I really feel lost now and need help, and I think it’s better to get some insights from here. I am 25 years old, currently in NS. Reached my one-year mark and will ORD in May next year.”
He went on to explain that his monthly allowance “ranges around S$950,” an amount some might consider sufficient for a young serviceman.
However, the reality, he said, is that he has been living paycheck to paycheck for quite some time now.
He confessed, “I have no savings at all. I just can’t have the proper discipline or control to save money. I have tried to have different categories like sinking funds, essential funds, savings, and fun money, but eventually I just take the money from there.”
Breaking down his spending, he wrote that he has been paying “his own bills” and allocating more than S$100 to his Grab PayLater account, which he admitted has become a problem.
“I know I should stop using Grab PayLater as…I could save or use [the money] for something else.”
He has also been giving money to a friend who claims to be struggling financially. “He says he’s broke, and me being me, I would give him money even when I have little to none. I know I should stop this, but I just can’t say no to him.”
At home, financial pressures also continue to weigh heavily on him.
He explained that his mother is currently the sole income earner in the family, bringing home roughly S$2,000 a month, while his father remains unemployed.
Because household expenses are often tight, he regularly contributes part of his allowance to support the family.
“My father, he is just useless; he doesn’t even work at all. It’s just the 3 of us, but still, expenses can be quite tight, and he doesn’t even lend a hand with it.”
Even when he manages to put money aside, those savings often do not stay untouched for long. He shared that his mother occasionally asks him for financial help, forcing him to dip into whatever amount he has managed to set aside.
At present, the man has only S$50 left in his bank account, which he said “needs to survive on” until his next payday on Jun 11.
Feeling overwhelmed by his situation, he said he wants to make meaningful changes to his financial habits starting this month.
“I just feel so lost now,” he lamented. “I really want to try to do things differently from Jun onwards. So if you guys have any advice, please tell me. I am willing to change my habits and at least have decent savings by the end of the year, since I am already 25 and seeing how people are having savings and I have nothing makes me feel damn embarrassed.”
“Get smarter and wiser, please.”
In the discussion thread, many Singaporean Redditors quickly zeroed in on what they felt was the biggest issue holding him back, which was his habit of constantly giving money away even when he clearly could not afford it.
One user told him, “Offer physical help and emotional support. You are not in a position where you can help others financially. Real friends should understand that. If you are drowning yourself, you are unable to save anyone else.”
Another said, “I don’t think it’s your habits. You don’t earn much, but there are too many people asking you for money. Draw firm boundaries—including with your parents. As for that friend, say bye and choose better friends.”
Others in the thread offered practical money management advice. One user suggested starting with a basic but strict budget system.
They wrote, “Create a budget. Track your expenses using an app. I use Money Manager. If the allotted budget is used up, stop spending from that category until your next payday. The first few months would be trial and error. Don’t be too hard on yourself if you are not able to stick to your budget.”
Another commented, “Love yourself and live for yourself and your mom, first of all. Get smarter and wiser, please. Borrow self-help or finance books from the library. Take public transport and learn to cook, or be wise about where to spend money for food. Work in F&B in the future after ORD, they provide a meal allowance or food at work at least. If not, get a job and work, take public transport, and eat and drink wisely.”
A third added, “Get a bank account with a bank that has few branches, like Bank of China. Decline a card or cut up any they give you. Don’t download the app. That means the only way to withdraw cash is via physically going down to the bank branch. This greatly removes the convenience factor. Put a set sum aside each month into it. Can be $300, for instance. And stop paying a sponge of a friend if you yourself are nearly dry. If he is a real friend, he’ll understand and stop sponging off you.”
In other news, a woman has gone online to share how upset she feels over the possibility that her family’s domestic helper could end up living in a tiny utility room when they relocate to a new house.
Sharing her concerns online, she explained that the helper currently has a pretty decent setup. Since the woman’s sister already moved out, the helper has been staying alone in a proper room with her own attached toilet.
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