Category Archives: Financial Independence

People save money for many reasons, but most people ultimately want the same thing: financial independence. And the stock market has historically been the best path to building life-changing wealth. Since 1928, the total return of the S&P 500 has easilytopped the performance of treasury notes, corporate bonds, and real estate, and there is no reason to believe that trend will change.

Of course, some investment strategies involve far more risk than others, but it is possible to build a $1 million portfolio by investing just $100 per week without taking on unnecessary risk. Here's how.

Before putting a dime in the market, investors need to have an emergency fund. Murphy's Law says it all: If anything can go wrong, it will go wrong. People lose their jobs, cars break down, and medical emergencies arise. Navigating those unforeseen events can be expensive, and the last thing you want to do is sell stocks to come up with cash.

Why not sell stocks? The market can be volatile over short periods of time. The current downturn is a perfect example. The S&P 500 is 17% off its high, and many individual stocks have fallen even further. That means an investor without an emergency fund right now would be forced to sell during this down market, depriving themselves of the wealth they would have realized when the market rebounds.

How much money goes into an emergency fund? Most expertssay three to six months' worth of living expenses is ideal, so the number will vary from one person to the next. That being said, some people may be more comfortable with a larger pile of cash.

The secret to making money in the stock market is frequent contributions and a long-term mindset. A buy-and-hold strategy paired with regular investments eliminates short-term noise, and it increases the odds of turning a profit.

The following chart illustrates how different holding periods impact the probability of a positive return in the S&P 500.

Holding Period

Probability of Positive Return

1 month

63%

1 year

75%

10 years

94%

20 years

100%

Data source: Fisher Investments. Note: based on data collected between 1926 and 2017.

Building on that idea, the S&P 500 has generateda total return of 1,630% over the last three decades, which is roughly equivalent to 10% per year. At that pace, $100 invested in an S&P 500 index fund on a weekly basis would be worth about $1.1 millionin 32 years. Even more impressive, that figure would hit $2.4 million after 40 years.

Of course, some people may not be able to afford to invest $100 per week, and others may want to invest more. That's OK! The chart below shows how long it would take to accumulate $1 million based on different weekly contributions to an S&P 500 index fund, assuming a return of 10% per year.

Amount Invested Per Week

Time to Build a $1 Million Portfolio

$25

46 years

$50

39 years

$75

35 years

$100

32 years

$200

25 years

$300

21 years

Data source: Bankrate. Note: time is rounded up to the nearest year.

An S&P 500 index fund may sound boring compared to buying individual stocks, but boring is often good when it comes to investing. With an S&P 500 index fund, you benefit from instant diversification, because your investment is spread across 500 of the largest U.S. companies. Better yet, while the S&P 500 has seen dozens of downturns over the years, the index has always recouped its losses and gone on to hit new highs.

To clarify, I am not advocating against investing in individual stocks, which make up the majority of my own portfolio. But putting $100 each week (or whatever you can afford) into an S&P 500 index fund is a less risky path to achieving financial independence. And with the S&P 500 down 17% from its high, now is a great time to get started.

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How You Can Build a $1 Million Portfolio With Only $100 Per Week - The Motley Fool

Jemal Countess / Getty Images for Green New Deal Network

In 2020, around 60 percent of 18- to 29-year-old voters cast a ballot for Joe Biden, making them the most Democratic-leaning voting group by age. This was in line with recent presidential elections, too, as young voters have been the most likely age group to vote Democratic in every presidential contest dating back to 2004. Yet this group, once Bidens best demographic, has now shown the largest drop in support.

Why have young Americans soured so dramatically on President Biden?

From my conversations with experts who study the political beliefs of young Americans and an examination of recent polling data, Ive identified a few key factors that help explain the large drop-off in support. First, of course, they are concerned about the economy a major driver of disapproval of Biden overall and about the direction the country is headed. But young Americans also have some concerns that set them apart from older Americans. They are particularly worried about achieving financial independence and other markers of adulthood, for instance. They are also frustrated with the Biden administrations limited progress on issues like tackling climate change and forgiving student debt, which many young people care a lot about. Moreover, Biden wasnt the first choice of young voters in the 2020 Democratic primary, so his approval among this group may have been soft to begin with. The question now is whether this dissatisfaction with Biden will affect whether young Americans vote in the midterms, a potentially significant factor in determining how poorly the midterms could go for Democrats since young people voted at a higher rate in 2018 than in previous midterms and overwhelmingly backed Democrats.

In some ways, Bidens decline among young Americans mirrors his standing overall. As Bidens approval rating has fallen to 38 percent in FiveThirtyEights presidential approval tracker, 18- to 29-year-olds approval of Biden has also slipped to 37 percent, with 53 percent disapproving of his job performance, based on data from FiveThirtyEights polling database.

John Della Volpe, director of polling for the Harvard Institute of Politics, told me Bidens slide is part of the broader disillusionment that Americans and young people are having about the country and the state of politics. (Della Volpe consulted on Bidens 2020 presidential campaign.) In fact, Harvards spring 2022 poll of 18- to 29-year-olds found that 36 percent of the respondents who disapproved of Biden (56 percent overall) said ineffectiveness best explained their disapproval.

As is true of other Americans, the economy seems to be an area where young Americans are particularly unhappy with Biden. In last weeks YouGov/The Economist survey, 34 percent of 18- to 29-year-olds approved of the way Biden was handling jobs and the economy, slightly lower than the 37 percent who approved of his economic performance overall. Similarly, polls released in mid-July by Fox News (of registered voters) and SSRS/CNN (of adults) found that less than 30 percent of American adults under 35 approved of Bidens work on the economy (28 percent in Fox News, 25 percent in SSRS/CNN), compared with about 30 percent overall. Meanwhile, in Harvards spring 2022 poll, 74 percent of 18- to 29-year-olds said inflation had affected their personal finances a lot or some, and inflation has worsened since then. The Fox News and SSRS/CNN polls found that about 1 in 5 of those under 35 approved of Bidens handling of inflation, compared with 25 percent overall.

Such economic concerns may be particularly acute for young people because theyre just getting their lives off the ground. A survey report on Generation Z, conducted by Della Volpes company Social Sphere on behalf of Murmuration, found earlier this year that 35 percent of Americans age 15 to 25 said financial independence was their most or second-most important life aspiration, ahead of other priorities such as having a fulfilling career or being married. Financial independence was number one not wealth independence but literally doing something that millennials couldn't do, which is leave their parents home, said Della Volpe.

The fact that so many young people are prioritizing making ends meet is understandable considering how many are worried they will have a tough time doing so. A Pew Research Center poll found last year that 80 percent or more of adult Americans under 30 a group that also includes some younger millennials said it was harder for young people to afford to pay for college tuition, buy a home or save for the future compared with their parents generation.

Woven into these larger financial concerns are worries about student debt, a particularly big issue for 18- to 29-year-olds because many have student loan debt to pay off 34 percent according to the Education Data Initiative, roughly twice the rate of any other age group. Moreover, despite campaigning on student-loan forgiveness, Biden has yet to make any progress on relieving student debt, which exemplifies another possible source of the presidents struggles with young Americans the overwhelming sense that he hasnt done what he promised.

Harvards spring poll found, for instance, that 14 percent disapproved of Biden for not following through on campaign promises, second only to ineffectiveness on a list of reasons for their disapproval. This feeling was especially prominent among the 29 percent of young Democrats who disapproved of Biden overall, as nearly one-third of them fell into this camp, similar to the share who cited his ineffectiveness. In that same poll, about 3 in 5 respondents said that the government should cancel at least some student loan debt.

Della Volpe felt student debt was an area where Biden could change young Americans' perception that the administration hasnt made progress on key issues. Discretely addressing his promise to deal with the student debt crisis would be the fastest thing to reset that conversation, said Della Volpe. Biden is reportedly considering issuing an executive order to forgive some debt given Congresss inaction on the issue, but its possible such an order could be shot down by the Supreme Court.

These sorts of challenges a conservative judiciary and a sharply divided Congress make transformational change so difficult for Biden to accomplish. This, in turn, has dampened the spirits of some younger liberals. Take something like climate change, which young people overwhelmingly cite as a top issue and want to see action on. Its an issue, though, that has proven challenging for the Biden administration to act on and has led to a growing sense of frustration among young Democrats. In May, 26 percent of 18- to 29-year-old Democrats told Pew that the Biden administrations climate policies were taking the country in the wrong direction, compared with just 9 percent of Democrats 65 or older.

Even when the White House seemingly gets a political win, like the bipartisan gun-control law, it still struggles to highlight this for young people. It would be really helpful for the White House to play up what just happened with gun policy since that is something that youth groups and gun-violence-prevention groups have been touting, said Abby Kiesa, deputy director of the Center for Information & Research on Civic Learning and Engagement at Tufts University. But a poll conducted by Morning Consult/Politico right after Congress passed the bill on June 24 found that 60 percent of Generation Z registered voters (18- to 25-year-olds) had not seen, read or heard much or anything at all about the legislation, which was much higher than for other age groups.

Its possible, though, that some young Americans dissatisfaction with Biden predates his presidency. After all, among 18- to 29-year-olds, Vermont Sen. Bernie Sanders won 63 percent of the Democratic presidential primary vote up through mid-March, while Biden won just 17 percent, according to exit polling. Della Volpe pointed out that by the end of the 2020 campaign, young people did like Biden, but recent polls suggest he has lost his appeal: YouGov/The Economist, Morning Consult/Politico and Quinnipiac University all found Bidens favorability rating underwater among the pollsters youngest respondents.

The million-dollar question now is whether young Americans negative views of Biden will affect their voting behavior this November. When it comes to turnout, the answer, at this point, looks like no. Harvards spring poll found that 36 percent of young Americans said they would definitely vote, which was similar to the 37 percent who said the same in spring 2018. And that midterm experienced historically high turnout, including among 18- to 29-year-olds, 36 percent of whom voted according to the U.S. Election Project. Other polls have also found that other groups in the electorate are engaged, perhaps auguring high midterm turnout once again.

Despite the frustration that young people have about government in general, they just feel more connected to voting, said Della Volpe. I think this is just a new era of engagement. At the same time, even though 36 percent said in that Harvard survey they would definitely vote, 43 percent of 18- to 29-year-olds said they didnt believe their votes make a real difference, and 57 percent said politics today are no longer able to meet the challenges our country is facing.

Despite the rampant skepticism about politics among young people, Kiesa also felt fairly upbeat about their participation: Indicators of youth engagement in a midterm election are pretty good, relatively speaking. She pointed out that a lot of young people were already registered to vote thanks to 2018 and 2020 being such high-water marks for youth voter engagement. Moreover, according to CIRCLEs data, about half the states in the country now have more 18- to 24-year-old registrants than they did in 2018, including many battleground states such as Arizona, Michigan and Nevada. Kiesa did note that its not all good news, however, as registration among 18- and 19-year-olds is lagging.

But its not just a matter of how many young people show up to vote; its also whom they vote for, and on that point the data is less clear. In 2020, roughly 60 percent of voters under 30 backed Biden, according to Pew, and in 2018, around 70 percent backed Democratic U.S. House candidates. Its hard to imagine, though, that Democrats will get that level of support in 2022, as polls suggest Democrats leads are much narrower with those under 30. For instance, YouGov/The Economists survey last week found Democrats leading 52 percent to 23 percent among registered voters 18 to 29, while the GOP pollster Echelon Insights gave them an edge of just 49 percent to 42 percent.

Kiesa told me that young people remain the most likely to vote Democratic, but added, Young people are not blind party followers. We've learned that they're really focused on issues and really focused on how to urgently make change on those issues.

Thats why Biden and Democrats policy shortcomings on some key issues, along with the broader discontent over the economy, could help Republicans narrow the margins among younger voters this year whether through shifts in turnout or some degree of vote-switching. Suffice it to say that young Americans could play a major role in determining a number of close elections in 2022.

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How Biden Lost The Support Of Young Americans - FiveThirtyEight

Millennials see life hacks in every aspect of life.

Capitalism has long been bolstered by business and educational paths structured to ensure a steady and predictable climb. However, millennials are increasingly debunking tradition for the lure and impromptu nature of hacking their way through life.

Look no further than financial literacy hacks to improve outcomes for the next generation. While the term hacking emerged in MIT sixty years ago, before digital computers, according to Joseph Reagle, author of Hacking Life, today hacking refers to a philosophy that explores the mechanisms behind any system and optimizes those mechanisms for the benefit of the user.

Many young people feel inadequately prepared from an education system that has fallen behind in furthering financial literacy inside curriculum models. Adding to the issue is the growing number of Americans beginning to question the value of going to college as they consider the high debt and costs. While some schools are accelerating their approaches in K-12, according to the National Education Association (NEA) findings, only half of the nations schools require a financial literacy course.

As younger generations search for answers to a less predictable financial future, they are increasingly turning to alternative outside resources in the form of hack experts to gain some footing. Tyler Bossetti, the co-founder of 0 Percent, is one such individual that is offering financial learning on leveraging credit and other financial advice to a generation in need of hands-on solutions.

After dropping out of college to work in a mortgage company, he parlayed an eight-figure 4,000 plus real estate transactions into his present business, 0 Percent. With a wide range of available videos at the ready, Bossetti is coaching thousands of clients on creating generational wealth through real estate investing.

His efforts are helping emerging generations rewrite the establishment's narrative by increasing self-education in areas that bring independence.

Early Shaping

Rod Berger: Talk about your background and how it shaped your path to where you are now with 0 Percent?

Tyler Bossetti: Its about self-education. My father passed away when I was eight and I didnt have contact with my fathers side until I was 18. At the moment of reconnection, my grandfather on my dad's side immediately began instilling good values, beliefs, and the need to open my horizons. Ultimately, he taught me financial literacy, specifically how credit works.

Believing credit is the foundation of people's finances, I dove into self-education, understanding credit for mortgages and the little nuances. It can be the difference between not only getting qualified for a loan but getting qualified for better terms that can save hundreds of thousands, and millions of dollars over your lifetime.

Learning About Credit

Berger: How did that idea of understanding credit expand into other areas of financial knowledge?

Bossetti: I started to explore social media, like travel hacks, using credit for travel. But then it got really exciting for me and I started connecting all the dots. To be financially independent, cash-flowing assets, such as passive income exceeding our expenses, are necessary. I believe that the best asset class, when it's all said and done, is real estate.

It made me look into ways to use credit (a.k.a., other people's money) to get qualified to do everything in life, such as rent, get a car, student loans, and even travel for free. But better yet, I became excited about learning how to use credit, specifically business credit, to 100% finance real estate deals.

I became obsessed and I still am to this day with learning how things work when it comes to money. Growing up with hardships, as most people have experienced, I found it funny that we're all working to make money, but do we know how it works in the first place?

Technically, money is credit when it's printed off. So again, I think credit is the foundation of people's finances. It affects everything we do. Hence, crypto and these other cool things are popping up to disrupt the current financial system built on credit.

Hacks for Leverage

Berger: Your generation seems to be very adept at finding ways around traditional means that my generation didn't even know. Does the concept of hacks give you ideas on tackling life? Maybe someone with your talent might look at deconstructing things to see if there is a more productive way of doing things through hacks.

Bossetti: Its human evolution. In my opinion, as humans, we ideally become more efficient and effective with time, energy, effort, and money. Our generation looks at social media and crypto credit in these hacksits how can we leverage these tools to accelerate our growth personally, professionally, and financially.

Most people work manufacturing jobs from where Im from in Dayton, Ohio. Its a great paycheck, but they're putting their health at risk, their life at risk to do these very daunting tasks every single day, and they can't control their income. But if they could understand how credit works and accumulate a couple of rental properties, maybe in 5-to-10 years, they could reach financial independence in half the time it would take to retire.

I think the world's backward in looking at how money works, the belief systems, and the education system. Now, sure, there are good core principles of being prudent and frugal, absolutely. But most businesses fail because they use their own cash. Most people are paycheck to paycheck because of high-interest debt. What if we could use low interest 0% capital to eliminate bad debt, use that capital to scale business ventures, and create passive streams of income?

Take, for instance, when your car breaks down (not if) but when things go wrong, at least you're putting it on credit, on other people's money at low interest, or 0% interest.

In addition, we're likely entering a pretty brutal recession and its beneficial to have a stockpile, a line of credit that you can lean on to accumulate even more assets at a discount.

I view these hacks, such as traveling for free, etc., as a positive consequence of accelerating your lifestyle and growth.

I grew up in the cornfields of Ohio, where most people think they have to break their backs to get things they want to increase their lifestyle or standard of living. In reality, you're doing yourself a disservice by not learning and educating yourself. It takes consistent education but it doesn't have to be painful.

Education of Self-Education

Berger: There appears to be many more of the younger generation considering leaving higher ed for other paths. We're seeing that people are starting to question what should they be studying, thinking about credentials, and different ways to acquire knowledge as opposed to the traditional way. What do you think we need to do in schools to adopt the Bossetti mindset to better prepare students moving forward?

Tyler Bossetti turned his own challenges into learning opportunities for himself and others.

Bossetti: I don't know if the current education system will ever solve that. As strange as it might seem, I'm actually super lucky that I grew up with life adversity, a little bit of chaos in the household, limiting beliefs around money, and the pain of my fathers passing.

Most things that people have a passion or a desire to do are typically wrapped in previous pain. We can turn that pain into our purpose. I became obsessed in middle and high school with building generational wealth because I saw the value of what money can do.

I do believe that structure is very good. In my opinion, you can Google anything you want to know. At least 99.9% of the information needed is on social media, Google, or YouTube. That being said, connecting all the dots is a little painful.

Its why I believe in the courses that people are putting out. Like anything in life, there are some bad apples in every industry. But ultimately, I think that if I was in high school, and I knew I wanted to be a successful entrepreneur, and I discovered who Grant Cardone, Tyler Bossetti, or Tai Lopez (some of the influential people) were, I would have bought their course in a heartbeat because it gives you structure. It gives clarity and transparency to the successes, failures, and lessons that individuals like ourselves have learned along the way.

Its good to have an A to Z plan. It's not always perfect, but course material structure helps cultivate a community culture where you can learn with others and network. It comes down to the right information and people.

Berger: Do you find it would be effective for schools to teach an entrepreneurial mindset and reframe some of the approaches to alter the way of thinking for students?

Bossetti: I dont know if there will be a massive shift in education; maybe it will, and that would be awesome. Number one is understanding what is money. Why is it important? How does it work? When do I need to start implementing credit that will lead to assets vs. liabilities?

Courses in high school and college teach you the nuances, but in reality, I believe the learning lies in understanding personal and business credit. Then, from there, you can learn to automate and delegate. Taxes might be complicated, so you bring on a great CPA. You start bringing in those pillars once you start comprehending the foundation of financial literacy.

Berger: What is the moral of your story?

Bossetti: This might seem aggressive and I do not mean to offend but I believe Im the underdog that ended a peasant mentality. Most people are operating their life with victim beliefs, which I uncomfortably refer to as a peasant mentality.

I wake up sometimes, or at least every day, and there's a part of me where that little victim mentality comes out. That's my core foundation, an underdog. If you're male, female, whatever gender or skin color, and whatever happened to you as a kid, most of our problems and our limited beliefs have a direct correlation to family trauma.

Its about mastering those uncomfortable things. I lost my father early, and every day became unpromised with many hardships. But it taught me how to make money, how it works, how to keep it, compound through taxes, and leverage using lucrative tools.

That's what my story is all about. Whether you are at the top, in between, or at the bottom, youre an underdog. Most generational wealth (over 70%) returns to poverty in the second generation. So, if you are a child or twice removed from that generational wealth, and your family still has it, congratulations, but guess what? Time's ticking, so you still need to move with a mentality that you're the underdog. The odds are against you.

Bossetti serves as a conundrum to higher education and traditionaliststechnically, a college dropout turned business owner collapsing generational timelines and accumulating transformational wealth while educating the next class of students along the way.

How will higher education and corporate America better serve the Bossettis of the world? Will areas of study change course, leaning more into the application rather than theory? Will career ladders be replaced with personalized professional opportunities that allow for input and U-turns?

The sands of time will not wait for the legacy inside western institutions of higher education and the private sector to create meaningful adaptations. Early career professionals are just fine hacking their way through life with or without the support and an underdog mentality to boot.

Interviews have been edited and condensed for clarity.

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Education 'Hacks' Drive Generational Approach To Career And Life - Forbes

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Global challenges, pandemics, and inflation are increasingly taking a toll on Americans financial independence. The Planning & Progress study (2022) run by Northwestern Mutual showed that the average amount of savings has decreased by 15% over the past year, causing many households to endure the pressure of financial stress. If youre also experiencing a problem with spending money, we know youre not alone. This article will tell you how to relieve money stress and name effective ways to save money each month.

A light purse is a heavy curse, isnt it? Indeed, the long-lasting how to save money issue may significantly impair your mental and physical health. Muscle tension, depression, anxiety, and a sense of isolation are the most common financial stress symptoms. In the long term, money anxiety increases the risk of chronic diseases and worsens your general well-being.

Financial stress can both be caused by unforeseen events (layoff, divorce, health issues) or the pressure of routine obligations (mortgage, rent, student loan). Note those who live from paycheck to paycheck are not the only victims of money insecurity. Even wealthy households can face it. The May survey conducted by LendingClub found that two-thirds of Americans have experienced budget disruption at least once in the past three years.

Undoubtedly, money anxiety badly affects most aspects of life. The best way to get rid of it is to get the balance in order. Below weve listed the best practices to help with money problem:

If your current earnings do not cover the basics, increase the household budget with extra sources of income. For example, you can take on more hours at work or pursue a freelance project. Dont undertake more than you can handle. Your hobby monetization can become a healthy alternative to overtime workloads. Sell the homemade bakery, walk dogs, teach musical instruments make money from anything that excites you.

Conduct an inventory of your spending. What are essential bills, and what expenses can be cut? Set aside an untouchable budget for utility services, loans, and other mandatory bills. Check your paid subscriptions, shopping, and leisure expenses, and cut the unnecessaries as much as possible. This approach will help you save money without significant habit changes.

Initiate a so-called financial safety bag in case of sudden disruptions. Set a minimum monthly amount to save without hitting your wallet. Try to follow a plan and dont skip deductions. Making these contributions regularly will help relieve financial stress and make you feel more confident when facing new challenges.

Keep a budget, set financial plans, and follow your progress with automatic trackers. Youll always know the available money amount, the sum saved, your net worth, and expenses. Watch your financial habits change and celebrate your monthly achievements.

If you still dont have an online budgeter, try managing your money with Saldo Finance. It has an intuitive interface and many useful features for household budget keeping. Connect multiple accounts from any bank registered in the U.S., set monthly limits, and track your revenue in real-time. The app also categorizes your spending to better understand which payments to optimize.

Overcoming financial stress may seem very difficult at first. Dont worry, be patient and stick to your goal. Remember that the big things have small beginnings. Follow our tips to get back on your feet quickly and painlessly.

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How To Deal With Financial Stress - Programming Insider

With almost 90 percent of its population consisting of foreigners, the United Arab Emirates tops the list of nations hosting large numbers of immigrants. This may come as a surprise to many, and perhaps rightfully so, since international coverage of the country has mostly focused on the skyscrapers and the luxury hotels of Dubai. What has been left largely unseen are the living conditions of many of the UAE's migrant workers, who hail predominantly from South Asian nations such as India, Bangladesh, and Pakistan. Over the years, reports have surfaced claiming that migrant workers are consistently treated unfairly, have their passports confiscated, and their domestic and international movement restricted. Even though the UAE is viewed by potential migrant workers as a land of hope, the experiences of those who make it to the country and go through the employment system may, and probably should, lead to a change of this view.

Like the rest of the Gulf Cooperation Council member nations, in the UAE's Kafala system, migrant workers are essentially sponsored by their employers, who are mostly private companies looking for sources of cheap labor. On paper, the Kafala system grants employees multiple basic rights in the form of annual and maternity leave, as well as a guarantee of regular wage payments. The system also bans employers from confiscating employees passports or having employees work more than eight hours a day. However, a 2019 US State Department report noted that the Emirati government rarely investigated violations of the Emirati law governing the Kafala system, which occur in the form of frequent passport confiscations and irregular or no payment of wages. This lack of regulation allows employers to often confiscate employees passports, forces them to reside in crowded labor camps, and restricts the financial independence of the employees through imposing recruitment fees, rendering the on-paper Kafala rights granted impracticable. In addition to the lack of regulation, the UAE has no minimum wage set for migrant workers, does not allow workers to join unions, and forces them to receive the permission of their employer before changing or quitting a job. These restrictions lead to a view of the Kafala system and the Emirati employment procedures as an example of modern slavery.

If one were to classify the employment process in the UAE as modern slavery, recruitment fees would serve as the first step towards enslavement. Even before arriving in the UAE, migrant workers find themselves having to pay recruitment fees to agencies that can secure them jobs in the UAE. Those that are not able to pay the fee upfront are assisted by their employers, who end up paying the agencies that find employers from abroad. Per Emirati law, it is illegal for employers to force their employees to pay these recruitment fees. Yet, it is often the case that when workers want to quit, they are forced by their employers to pay back the recruitment fee that the employers had initially paid. Paying back is not easy: many workers have to work for up to a year just to be able to pay the recruitment fee back to the employer. In other cases, the employers deduct certain amounts from the wages of the workers to cover the recruitment fee. In the end, it is almost always the migrant workers that have to bear the burden of the recruitment fees despite Emirati law clearly banning employers from forcing workers to pay the fee.

Once a migrant worker arrives in the UAE, it is often the case that their passport will be confiscated right away at the airport. Employers justify these confiscations by claiming that they need the employees passports so that their visas can be issued. Other excuses include concerns about the safety of the passports if the workers keep holding on to them. Sometimes workers themselves give up their passports out of fear of losing them or having them stolen. However, even for the purposes of safekeeping, it is almost always the case that the employees do not have direct access to their passports.

Once employers have trapped their employees in the UAE by confiscating their passports, they have them sign lengthy contracts, which are often in Arabic or English, with little to no assistance with translation. After starting work, employees find themselves having to live in packed accommodations, sometimes with up to 10 people trying to inhabit one room. According to Human Rights Watch, some workers were only given food after their work for the day was done. Other reports include employers deducting food costs from their employees salaries. If a worker were to fall ill, it would often be the case that the cost of health care provided would be deducted from their salary. Those that are less lucky have no access to health care at all, especially for conditions that arise due to inadequate working conditions or physical abuse.

The lack of labor unions for migrant workers means that there is no official platform for the employees to defend their rights and demand better working and living conditions. Organizing protests is one option, but protests in the UAE usually end with arrests and contract terminations. Strikes are also prohibited. It is common for workers to get deported for striking, often after being left unpaid for several months. In 2013, a strike organized by a group of employees of the construction firm Arabtec led to dozens of employees being deported and the strike broken with support from the police. The government appears to collude with the owners of private companies like Arabtec and mobilize the police, which, as in almost all authoritarian regimes, seems to have become a tool to serve the interests of the government and the private companies, rather than a neutral force that provides security. More recently, in 2020, 500 workers of AMB-Hertel, the Emirati branch of the French firm Altrad, went on strike as they were left unpaid. Reports claim that some workers were even laid off for going on strike and could not receive their pay despite having earned it.

Altrad, the French multinational construction company, is only one of the many Western establishments that seem to forget the laws and regulations of the countries they are based in once they start operations abroad in the UAE. Altrad is joined by New York University (NYU), Hilton, the Louvre, Guggenheim, and the British Museum in conducting alleged malpractice against migrant workers. Those who took part in the building of NYUs Abu Dhabi campus faced similar obstacles, including having their passports confiscated and being forced to pay recruitment fees. Although NYU had instated labor protections, which were supposed to ensure that laborers working to build the campus would enjoy better protections compared to UAE standards, these additional protections were almost nonexistent on the ground. NYU has stated that the additional protections did not apply to workers who were on short-term contracts (approximately 10,000 of the 30,000 laborers). To those for whom the protections did apply, NYU would, on paper, reimburse the recruitment fees. However, the University claims that it couldnt verify that workers had paid fees for the NYU campus project and not a prior one. Despite the added protections, NYU seems to have failed to foresee the potential difficulties that would be encountered in a system that is already very difficult to navigate for migrant workers.

Employees of Hilton Abu Dhabi reportedly experienced similar coercion by their employers, in the form of being forced to surrender their passports. Pacific Standard claims that the hotel management would have the employees sign a form that ensured that the employees were voluntarily turning in their passports for safekeeping, as Hilton also said as part of an official statement. Despite the supposed voluntary nature of the surrender of passports, employees of Hilton Abu Dhabi claimed that those who did not give up their passports carried the risk of having their contracts terminated or incurring unjustified fines. Hilton, as part of the statement it made, claimed that the employees were welcome to take back their passports at any time, yet the employees disagree as they think these practices are all about control.

Migrant workers employed on the Saadiyat Island project, where Louvre, Guggenheim and other museums are located, faced similar challenges without receiving any form of concrete support from Western companies and organizations. The Louvre, in particular, has never publicly announced a plan that would protect the rights of those working to build the Abu Dhabi branch of the museum. Unpaid wages, arbitrary detentions, deportations, and threats were common occurrences for those working at the Louvre site. Other reports suggest that Louvre workers had to work for up to a year just to be able to pay the recruitment fees back, with some workers who went on strike being left unpaid and deported. According to the reports, there have also been violent clashes among migrant workers, which may have been provoked by the hiring of strikebreakers. The clashes, which involved physical conflict, resulted in multiple workers being hospitalized and some getting arrested. The British Museum, which has a partnership with the Zayed National Museum of Abu Dhabi, attributed these clashes to conflicts between rival gangs of workers. In its statement, the British Museum also claimed that they were not aware of any disputes regarding pay or working conditions on Saadiyat Island.

There is no doubt that the UAE has to make significant progress towards protecting the basic rights of migrant workers that migrate there in hopes of building a better, more prosperous future. Yet, this seems quite infeasible especially when establishments that would be deemed Western or humanitarian tend to adapt quite rapidly to the inhumane norms of the UAE. Situations where workers passports are confiscated, wages are left unpaid, or worse, where workers are detained and deported would all cause tremendous outrage if they happened in the West. However, it seems to be the case that when employees are mistreated in a different country, far away from the safety of the protective laws and regulations of countries like the United States, the United Kingdom, or France, these Western establishments tend to remain disappointingly quiet. While the majority of the Saadiyat Island projects mentioned above have been completed, the Zayed National Museum, which is to open in 2022, and Guggenheim Abu Dhabi, set to open in 2025, remain under construction. As the UAE commences more alluring projects, it is absolutely crucial for both her and her Western partners to thoroughly review the status of migrant workers and act to implement policies that protect their rights and ensure their safety.

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Taken Hostage in the UAE - Harvard International Review

Starting an investment portfolio is one of the greatest things you can do to help yourself achieve financial independence. One misconception is that investors need a lot of money to get into the stock market. That couldnt be further from the truth. With just $1,000, you could start an investment portfolio and put yourself on track to retire comfortably. In this article, Ill discuss three stocks that investors should buy and hold for the next five years.

If I could only pick one Canadian stock to invest in for the next five years, it would be Shopify (TSX:SHOP)(NYSE:SHOP). This company has emerged as one of the worlds leading enablers of the rapidly growing e-commerce industry. It provides a platform and many of the tools necessary for merchants to operate online stores. What makes Shopify so attractive is that it offers solutions that are appealing to first-time entrepreneurs and large-cap enterprises alike.

Although Shopifys stock has plummeted over the past year or so, I believe it could recover over the next five years. Its business remains very stable, with Shopifys monthly recurring revenue growing at a compound annual growth rate (CAGR) of 38% over the past five years. The company also continues to expand its enterprise partnership network. Last week, Shopify announced that it would be partnering with YouTube, allowing content creators to sell merchandise to consumers more easily.

Investors should also consider buying shares of dividend stocks. What makes these sorts of stocks attractive is that they could help supplement or even replace an investors primary source of income. In addition, dividend stocks tend to be more established and thus less volatile than growth stocks. There are many different factors that investors should consider when looking at dividend stocks.

In this article, well use Canadian National Railway (TSX:CNR)(NYSE:CNI) as an example. First, investors should consider whether a company has managed to increase its dividend over time. This is important because investors are poised to lose buying power if a stock is unable to continually increase its dividend. Canadian National has managed to increase its dividend in each of the past 25 years, making it one of 11 TSX-listed companies to currently surpass that mark.

Canadian National also increases its dividend at a fast rate. Over the past five years, this stock has grown its dividend at a CAGR of 12.2%. If the company can continue growing its dividend at that pace, investors could be looking at a quarterly dividend of $1.30 per share in five years time.

Finally, investors should consider buying shares of financial institutions. If you look at the more prominent companies in the country, youll notice that a large proportion of those companies operate within the financial sector. As such, companies like Brookfield Asset Management (TSX:BAM.A)(NYSE:BAM) could be excellent to hold in your portfolio.

Brookfield operates a portfolio with nearly $725 billion of assets under management. Through its subsidiaries, this company has exposure to the infrastructure, real estate, renewable utility, and private equity markets. Brookfield offers a stock that may be attractive to both growth and dividend-minded investors. Over the past 27 years, Brookfield stock has grown at a CAGR of nearly 15%. It has done this while maintaining its title as a Canadian Dividend Aristocrat, having increased its dividend for over a decade.

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Where to Invest $1000 for the Next 5 Years - The Motley Fool Canada

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While the idea of financial freedom can mean different things to different people, a recent report by Bank of America pinpointed the top three areas many women say indicate financial independence.

To get the results, more than 3,500 women ages 22 and up were surveyed about their thoughts on financial confidence, especially when it comes to investing.

Here's a look at the top three indicators of financial independence, according to survey respondents, plus a few easy tips to help you meet those goals.

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For starters, 47% of respondents felt that being debt-free was a huge indicator of financial independence.

While some forms of debt such as a mortgage or student loan can buy you the flexibility to be able to afford an opportunity or acquire an asset, for many, the idea of actually owing money is enough to create a feeling of dread. A great deal of people are emotionally uncomfortable with debt, and those feelings of discomfort are reason enough to prioritize making their balances disappear.

Paying down debt also allows you a little more flexibility in the face of tough circumstances. For example, if your credit card limit was $5,000 and you were carrying a $4,500 balance, you would only have $500 left to float the cost of an unexpected car repair or roof leak if you didn't have an emergency fund to pull from. If, however, you were to pay off that balance, you would still have more room to cover a necessary expense if your emergency fund won't suffice.

There are many strategies out there when it comes to paying down debt. The popular debt snowball method involves eliminating the smallest debt balance first while paying just the minimum on your other debts. The idea is to work your way up to the largest balance until you're completely debt-free.

Another tactic, the debt avalanche method, involves eliminating your highest interest debt first while making minimum payments on the others, and working your way down to the debt with the lowest interest rate. This particular method will help you save the most on interest charges.

Debt consolidation is another strategy that can potentially help you save on interest charges while also organizing your debt into just one monthly payment. With this option, you're essentially using a debt consolidation loan, such as the Marcus by Goldman Sachs Personal Loan or the LightStream Personal Loan, to have your funds sent to each of your creditors to pay off those balances. After that point, you're just left paying back the debt consolidation loan you took out.

Another alternative is to use a balance transfer card with a 0% introductory APR period, such as the Citi Diamond Preferred Card which has a 0% intro APR on balance transfers for 21 monthsfrom date of first transfer, (15.24% -25.24% variable thereafter; there is a balance transfer fee of $5 or 5% of the amount of the transfer, whichever is greater and all transfers must be completed in the first 4 months) or the Chase Freedom Unlimited, which has a 0% intro APR for 15 months from account opening on balancetransfers, then a variable APR of16.49%-25.24%, to transfer a credit card balance with a high interest rate onto a new credit card that charges no interest fees for a limited time. The idea is the 0% introductory APR period will buy you enough time to have your entire monthly payment go toward the balance and not the interest, which should help you pay down your debt faster.

Emergencies are bound to pop up, which is why 39% of women who responded to the survey said being able to weather an unexpected expense was a sign of financial independence.

Having an emergency fund a lump sum of cash that you can access in the event of a dire need can help to offset these unforeseen expenses. For example, you could use money stashed in an emergency fund to replace a damaged car part, fix a leaky roof or pay a medical bill you weren't planning on.

Emergency funds can also help you make ends meet in the event you're laid off from a job with little to no notice. While unemployment benefits might help you to afford some of your daily expenses, those funds are generally not enough to cover your entire cost of living.

It's a good idea to keep your emergency fund in a relatively accessible account, such asMarcus by Goldman Sachs High Yield Online Savingsor anAlly Online Savings Account. With these high-yield savings accounts, you'll be paid interest on a monthly basis just for keeping a balance, helping to grow your emergency fund just a little quicker.

Experts typically recommend that you have an emergency fund with aboutthree to six months worth of living expenses, though the amount you should save is dependent on your individual situation and how much your monthly expenses usually end up being.

According to the survey, 34% of respondents said that not having to ask their families for financial assistance would make them feel more financially independent.

The rising cost of living, student loan debt and stagnating wages have made it tough for many people to keep up with everyday expenses sometimes, they have no choice but to turn to family to help bridge the gap between what they need and what they can actually afford.

While it's usually recommended that you simply find ways to cut back on spending to free up the cash for other expenses, with a highly inflationary environment like the one we're seeing right now, there may not be much room for individuals to cut back on spending more than they already are.

If you do find yourself hitting a wall with your cash flow, it might be time to consider asking for a raise at work or even switching to a higher paying job if you can. If you'd rather stay with your current company, try taking on a side hustle preferably one that you actually find enjoyable to help make ends meet.

If you choose to go the side hustle route, think about your skills and personal interests and try to find a side gig that works best for you. For example, if you have a knack for creating customized digital illustrations, think about selling them through a website such as Etsy.

While taking on extra work can be tiring, there are a few things you can try to mitigate burnout. For one, avoid doing side gigs that force you to use the same skills you're using for your day job. If you already work full-time as a writer, for instance, taking on an extra side hustle as a freelance writer can make it feel like complete writing overload. Consider using another skill you already have that you can monetize so you're not stuck doing too much of the same thing each day.

You should also think about how much time you realistically have to dedicate to a side hustle each week. If you can only spare 15 hours a week, you'll get stressed and burn out very quickly if you're pursuing a a side gig that's going to feel like another full-time job.

Catch up on Select's in-depth coverage ofpersonal finance,tech and tools,wellnessand more, and follow us onFacebook,InstagramandTwitterto stay up to date.

Editorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial staffs alone, and have not been reviewed, approved or otherwise endorsed by any third party.

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These are the three important things women say would indicate financial independence - CNBC

Kevin wants to hit FIRE (Financial Independence, Retire Early) and believes his motivation comes from witnessing the financial trauma of the Great Recession. Hes wondering if others are motivated to reach FIRE for similar reasons.

Colleen and her husband own SEVEN paid off rental homes. Now theyre heading into retirement and disagree on what to do with some of that equity.

Anonymous wants to learn more about utilizing HSA accounts and Susan is curious about investing in tax liens.

My friend and former financial planner Joe Saul-Sehy joins me to answer these questions on todays episode. Enjoy!

Do you have a question on business, money, trade-offs, financial independence strategies, travel, or investing? Leave ithereand well answer them in a future episode.

Kevin asks (at 03:47 minutes): Ive given a lot of thought to my motivation for pursuing FIRE.

I believe one of the primary motivations resulted from me being a teenager during the Great Recession. I saw friends and family go through job instability, and some people even lose their homes. I wanted to have financial freedom so something like that doesnt happen to me and my family.

Ive noticed a lot of people who are interested in the FIRE movement are Millennials like myself, and some of them had similar trauma from the great recession.

Do you think many people pursue FIRE for similar reasons? If not, what are your thoughts on what motivates FIRE adherence?

Colleen asks (at 20:13 minutes): My husband and I own seven single-family rental homes, free and clear. Their value along with our personal residence is about $4 million.

We also have about $2.5 million in retirement savings invested in the S&P 500.

Given the massive increase in property values over the past few years, I would like to sell at least one rental house. With the one Im thinking of, we are making about $10,000 net annual cash flow, and I believe we would net about $400,000 after taxes and closing costs.

We could reinvest that $400,000 in a passive real estate fund that weve been invested with for several years, which pays out about 10% annually.

Then instead of $10,000, we could have closer to $40,000 in annual cash flow just from selling this one house.

Were about to retire at the end of 2022 so cash flow is very important. Also, were not interested in doing a cash-out refi because we are 100% debt free and we want to stay that way as we head into retirement.

My husband is hesitant to sell as he likes having a real asset that we have some control of, and he thinks values will likely increase in our area for many years to come. He says, Why should we sell cash flowing, appreciating real estate when we dont really need to? But I just keep thinking of that untapped equity.

Anonymous asks (at 30:54 minutes): I recently have been hearing about the advantages of opening an HSA, a health savings account.

Do you think it is a financially sound and wise decision to open one?

What are some of the advantages of HSAs and are there any tricks to maximize the benefits of an HSA account, like triple tax savings?

Susan asks (at 39:47 minutes): I read Rich Dad, Poor Dad, and then I read The 16% Rule.

Id really love to hear your opinion on tax lien investing and any sort of tips or advice that you may have.

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#392: Ask Paula: Did the Great Recession Lead to the FIRE Movement? - Afford Anything

There's tons of advice online about building wealth and retiring early, but it's hard to know which approach works best for your specific circumstances.

Kiersten and Julien Saunders, a couple who retired in their 40s and host the popular podcast rich & REGULAR, suggest finding out what kind of spender you are before creating your wealth-building plan.

In their new book, "Cashing Out: Win the Wealth Game by Walking Away," the couple explains that there are three different types of spenders.

In the book, the Saunderses say that understanding the true motivations fueling your current spending habits can help you choose a wealth-building plan that actually works for you.

The Saunderses point out that the financially insecure typically have difficult circumstances to navigate that make it harder for them to actually save and invest any money. "Because of this, they adopt a worldview based on the grim realities of life they experience every single day," the couple writes.

The financially insecure are more likely to equate their self-worth with their ability to perform well at work. They are always striving for higher-paying jobs, living paycheck to paycheck, and struggling to feel like they have enough.

To counteract the impulse to keep grinding hard at a 9-to-5 job, the Saunderses remind their readers that a salary is never going to outperform investing in the stock market.

The couple writes, "You must believe your income can work harder than you can. Instead of working for your money, you must adjust to managing your money so that it can multiply over time to serve your future wants and needs."

Of fast spenders, the couple writes, "Money both comes in and goes out at such a fast pace there's no time to build an emotional attachment to it and little incentive to try tracking it."

The couple writes about a friend of theirs who would rather go out for expensive drinks and indulge in luxury vacations instead of funding his retirement. "Plus, he believes that if he wantedto, he could start saving money tomorrow. The problem is, tomorrow never comes."

The book contains "richuals," simple guidelines that help readers change their relationship with money. A good "richual" for fast spenders is to track your income andhow you feel when you earn that money. The couple writes, "A dollar earned doing something you enjoy is always better than a dollar earned doing something you don't."

You will have about

$1,725,000

You will need about

$2,940,000

*Need is based on covering 70% of your annual pre-retirement income and a life expectancy of 100 years.

The Saunderses say that the financially insecure and the fast spenders are less common than the group they've named the middle. They write, "People in the middle often have enough income and are even saving for retirement, but they have no idea what they're saving for, how close or how far they are to achieving that goal, or why they're even doing it."

While their book speaks primarily to those in the middle, they recommend that all spending types create a distinct purpose for their income. The couple writes that income should first be used to gain security. Next comes flexibility to spend and save in alignment with your values. Then independence meaning, earning money is completely optional.

After achieving the first three purposes of money security, flexibility, and independence you can then use your income to achieve financial freedom.

For the financially insecure, financial freedom might be getting a better job or becoming free from a financial obligation. For the fast spender, it can be a state of emotional acceptance around your money, or selling a company that you built from the ground up.

For the middle, however, it can be hard to define what financial freedom actually looks like. This is why it's important to envision why you're trying to build wealth in the first place, and how you're going to assign purpose to your income to achieve those goals. The couple writes, "Financial freedom isn't a number; it's a feeling."

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How to Build Real Wealth, According to What Kind of Spender You Are - Business Insider

Keeping all your money in savings is a dangerous bet against inflation, since the purchasing power of that money decreases as inflation rises.

LIKE most people her age, a 63-year-old educator is looking forward to retirement after spending almost 40 years in the classroom.

The veteran educator, who asked that her name be withheld, is dreaming of "simpler days".

"Retirement is something I have been looking forward to for the past few years. My husband and I have been planning for it and one of our biggest dreams is to travel," she revealed.

But despite her plans, she admitted that she has been having second thoughts, as the recent price increases and the economic uncertainties caused by the COVID-19 pandemic have made retirement seem like an unattainable goal.

"Honestly, I've been worried. From the pandemic hit, I have been wondering if I will be able to go through with my plans of retirement and now the rapid price increases have made matters even worse," the Clarendon resident said.

"We're spending thousands of dollars more than we used to each month, just on simple things like food and gas. Life has gotten considerably harder in the two years. I worry if I'll have enough savings to live comfortably, if I retire in the next year or so."

Dr Ransford Davidson, business relationship and sales manager, JN Bank, says it's natural that retirees and those soon to retire are worried about inflation and the impact rising prices will have on their retirement savings.

"It's not hard to understand how inflation can be a daunting prospect for retirees. Even in normal times, anyone who's planning for retirement or is already retired worries about running out of money," pointed out Dr Davidson. "The potential for rising prices only adds to that baseline of anxiety. Even for people with the best-laid plans, inflation is an uncontrollable factor that complicates retirement planning."

Dr Davidson noted that while seniors might be concerned about their future, they can still enjoy a comfortable retirement with the right amount of planning and preparation.

With that in mind, he provides five ways retirees can navigate inflation:

Review your budget

Seniors must ensure they adjust their budgets to account for the rise in prices. This way, they can see how much they're spending and where they may need to cut back. For instance, scaling back on unnecessary driving can help cut down on gas costs. When food shopping it may mean buying less meat and more vegetables, or going to the market for produce instead of the supermarket. Comparison shopping can also help persons save money.

Keep your portfolio balanced

Diversify your investments. Having a mixture of cash, stocks, bonds and other assets is key. "Keeping all your money in savings is a dangerous bet against inflation, since the purchasing power of that money decreases as inflation rises," Dr Davidson said. To ensure you can sustain your financial independence in retirement, consider dividend-paying stocks, growth stocks and real estate. These are assets that are going to fluctuate in the short term, but they are designed over a longer period to give retirees diversification and protection against inflation risk.

Get rid of debts

Many senior citizens are still straddled with debt, including mortgages, credit card and even car loans. This debt will be an anchor as inflation rises. That's why paying off or paying down debt should be top priority for anyone worried about late-in-life inflation.

Keep working in retirement

If possible, keep earning. "Every dollar earned is a dollar you don't have to spend. Your biggest hedge against inflation is your human capital. That doesn't mean you have to stay employed at a job that is stressful or that you were looking forward to leaving," Dr Davidson advised. He said seniors can scale down to part-time jobs, tutoring or consulting. "You can even change industries all together and pursue a venture you've always been interested in."

Talk to a financial advisor

Finally, Dr Davidson said seniors should seek out the knowledge of experts in the financial field to ensure they're armed with the relevant information to make the right decisions. "You don't have to figure this out alone. There are experts who are willing and able to assist you to work out a retirement plan that's right for you and to help you hedge against inflation or any other economic shock on the horizon."

When food shopping it may mean buying less meat and more vegetables, or going to the market for produce instead of the supermarket.

DAVIDSON... it's not hard to understand how inflation can be a daunting prospect for retirees

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Enjoy a comfortable retirement with right planning and preparation - Jamaica Observer