The Secret of Silent Wealth: Lessons from Singapore & Switzerland

 
It was lunch hour at an international conference in Mumbai. Three colleagues—Ramesh from India, Anna from Switzerland, and Li Wen from Singapore—sat together at the same table. All three were around 40 years old, working in mid-level roles, earning decent salaries for their countries. On paper, they were equals. In reality, their financial lives could not have been more different.
Ramesh, from Bengaluru, spoke first. “Every month it’s a struggle,” he admitted. “My salary is good, but by the time I pay my home loan EMI, my kids’ school fees, groceries, petrol, and the usual family functions, there’s very little left. I try to save, sometimes ₹20,000 in SIPs or FDs, sometimes gold at Diwali—but honestly, it’s irregular. Some months nothing at all.”
Anna, a nurse in Zurich, nodded politely. Her life sounded calmer. “In Switzerland, we don’t really think about whether to save or not—it just happens. From my paycheck, a part automatically goes into Pillar 1 state pension and Pillar 2 employer pension. I add a little extra into Pillar 3a ETF funds for tax benefits. Health insurance is compulsory, so I budget it like rent. I don’t feel rich, but over the years, I’ve built solid savings without even trying.”
Li Wen smiled. “It’s similar in Singapore. About 37% of my income is automatically deducted into the Central Provident Fund (CPF)—for retirement, housing, and healthcare. I also buy Singapore Savings Bonds (SSBs) every month. They’re safe, government-backed, and I can cash out anytime if I need money. My financial dashboard, My MoneySense, shows me all accounts—bank, CPF, mortgage—so I know exactly where I stand. Daily life is simple; I eat at hawker centers, take the MRT, and let my CPF grow quietly at 2.5–4% interest.”
Ramesh listened, half in awe and half in frustration. He worked as hard as his colleagues, maybe harder. Yet Anna and Li Wen seemed far more secure, not because they earned more, but because their systems forced discipline. They didn’t need to think about saving; the saving happened first, spending later.
As their lunch ended, one truth hung in the air: while India’s middle class often chases status and juggles irregular savings, Singaporeans and Swiss citizens quietly build wealth by living below the mean and trusting their financial rails.
After lunch, the three colleagues walked back to their sessions. Ramesh kept thinking about what Anna and Li Wen had just shared. How is it that we earn almost the same, yet they sound so relaxed about money? The answer lies not in luck or higher pay, but in a deeper philosophy of wealth—a way of thinking that both Switzerland and Singapore have cultivated over decades.

The Philosophy of Wealth:-

Education First, Luxury Later

Aspect	India (Typical)	Singapore (Typical)	Switzerland (Typical)
Education Priority	Degrees, then weddings/cars	Continuous upskilling (SkillsFuture)	Apprenticeships + lifelong learning
Housing	EMI-heavy, status-driven	HDB flats via CPF	Rent/own modest, high quality
Transport	Car ownership aspirational	Cars costly (COE); MRT widely used	Public transport + durable vehicles
Lifestyle	Weddings, festivals, jewelry	Hawker culture, modest daily spend	Quality over quantity
Wealth Display	Visible, gold/cars	Quiet, modest	Quiet, discreet
Saving Habit	Irregular, voluntary	Automatic (CPF + SSB)	Automatic (Pillars 1–3)

Living Below the Mean

In both countries, the first big family investment is always study, not show.

• In Singapore, parents spend a huge part of their income on their children’s education. Tuition, courses, even overseas study if needed. The government adds to this by giving every adult credits under the SkillsFuture scheme. Imagine being 45 and still getting money from the government to learn coding or digital marketing! That’s how seriously they treat skills.

• In Switzerland, it’s different but equally powerful. Most teenagers don’t just study in classrooms—they join apprenticeships, where they learn a trade and earn a salary at the same time. By the time they’re 18, many Swiss kids already know what it feels like to budget, pay for insurance, and save for the future.

Now look at India. We too value education deeply, and parents sacrifice a lot to put children in good schools. But after degrees, the priority often shifts. Instead of upgrading skills, families rush into big weddings, cars, or property. That’s where we lose out—the focus moves from investment in self to investment in status.

The second difference is in lifestyle.

• In Singapore, even bankers and IT professionals happily eat at hawker centres, where a full meal costs under ₹300. Cars are kept costly through the COE system, so people mostly use the MRT or buses. Homes are modest, mostly HDB flats, bought with CPF savings.

• In Switzerland, the culture is about quality, not quantity. A Swiss family would rather buy one jacket that lasts 10 years than three that look flashy for a season. Health insurance is compulsory and expensive, but they pay it on time, just like rent. For them, security is more important than status.

• In India, it’s often the opposite. A middle-class family may stretch to buy a big car on EMI, spend lakhs on a wedding, or keep gold jewellery locked in cupboards. These are not wrong—but they eat away at savings. We spend first, and then save what is left.
  
  

  What surprised Ramesh most was how quietly rich Anna and Li Wen were. Switzerland has more than 1 million millionaires—that’s one in every six adults. Singapore, with its small size, has nearly half a million millionaires. Yet, if you walk their streets, you won’t see the kind of showy wealth common in many Indian cities. Luxury shops exist, but ordinary people live simply.

  In India, wealth often has to be seen—cars in gated colonies, gold at weddings, designer clothes at festivals. Again, there’s cultural pride in this, but financially, it often means we prioritise looking wealthy over becoming wealthy.

  Household Spending Composition
  

  Savings Rates
  In India, the household saving rate is around 18% of disposable income. Respectable, but lower than Singapore’s 27.5% (Q2 2025) and just under Switzerland’s 19% average. This difference might look small, but over decades, it compounds into massive wealth gaps.

  
  
  

  
  
  

  Where money goes each month tells us about priorities:

  • India: Nearly 46% of household budgets are spent on food—still the single biggest item. Education is only around 6%.

  • Singapore: Housing/utilities (24%), food (21%), and transport (18%) dominate, with more balanced shares for education and health.

  • Switzerland: Food is just 10% of the budget, housing/utilities 15%, but health insurance—mandatory and expensive—takes a big share at 8%
    
    

    
    
    

    The results of disciplined saving and compounding are clear:

    • Switzerland: -1,050,000 millionaires, nearly 1 in 6 adults.

    • Singapore: -437,000 millionaires, ~8% of adults.

    • India: -800,000 millionaires, but that is less than 0.1% of adults.
      
      

      
      
      
      
      Government as the Hidden Architect:-
      
      

      If discipline is the habit, the state is the architect. What looks like “good behavior” in Singapore and Switzerland is in fact good design—rules, defaults, and rails that make the disciplined choice the easiest choice.
      
      
      

      Singapore: make saving automatic, visibility total, exits painless

      Auto-savings via CPF.
      Every salaried Singaporean is on the Central Provident Fund (CPF) from their first job. A significant slice of income is auto-diverted into sub-accounts for retirement (RA/SA), health (MediSave) and housing (OA). Long-term buckets have published floor rates (historically 2.5–4% p.a.) so households can plan with confidence. The critical bit is predictability: people trust money that compounds quietly.

      Safe cash ladder via SSB/T-bills.
      To cover upcoming needs without breaking compounding, Singapore created Singapore Savings Bonds (SSB)—government-backed, step-up coupons, and crucially redeemable any month at par. That tiny design choice kills the fear of “what if I need cash?” and keeps savers invested.

      One financial view via SGFinDex + MyMoneySense.
      Citizens can link bank accounts, CPF, tax and even insurance into a single personal dashboard. When you can see your whole life on one screen, you budget better, rebalance faster, and avoid duplicate debt.

      Product governance via MAS.
      Suitability and disclosure standards make it harder to mis-sell complex products to retail savers. Fewer regrets → more long-term trust → higher participation.

      Switzerland: layer redundancy, reward patience, protect the retail saver

      Three-pillar pension model.

      • Pillar 1 (state) covers basic needs.

      • Pillar 2 (BVG/LPP) is mandatory via the employer—this is the compounding engine for the middle class.

      • Pillar 3a (voluntary) gives tax advantages for long-term saving, now commonly invested in low-fee index funds/ETFs.

      Simple tax signal: hold, don’t churn.
      For private (non-professional) individuals, capital gains on listed securities are generally tax-free. Dividends are taxed, and there’s a transparent wealth tax at the canton level—so balance sheets stay visible while long-term equity ownership is rewarded. The net cultural message: own businesses for years.

      FinSA + FINMA guardrails.
      Clear client segmentation (retail/professional), advice standards, and active supervision reduce the odds of households being sold products they don’t understand. Fewer blow-ups, steadier compounding

      Why India’s compounding engine is smaller today
      
      
      

      

      
      

      This chart shows the depth of retirement systems—pension/retirement assets as a share of the economy. The bigger the pool, the more oxygen for long-term investment and compounding.
      
      

      • India (20% of GDP, broad order of magnitude): strong growth but still shallow relative to income size; many workers outside formal pensions.

      • Singapore (CPF) (90%): compulsory, centralised, with clear floors and uses (retirement, health, housing).

      • Switzerland (Pensions) (150%): decades of contributions across Pillars 1–3, invested in diversified assets.

      Large, patient pools don’t just secure retirements—they stabilize markets, lower capital costs for businesses, and normalize the idea that investing is boring, automated, and long-term.

      
      

      The Common Story – A Month in the Life

      Data can feel abstract. To really see how philosophy and policy shape wealth, let’s step into the everyday life of our three characters—Ramesh in India, Anna in Switzerland, and Li Wen in Singapore.

      Ramesh (India)

      Ramesh earns about ₹1.5 lakh per month. His expenses arrive in waves: ₹40,000 on his home loan EMI, ₹25,000 on school fees, ₹20,000 on household groceries and utilities, and another ₹15,000 on transport and fuel. Festivals and weddings often demand sudden large outlays. Some months he puts ₹20,000 into mutual fund SIPs, other months nothing at all. His emergency buffer is mostly fixed deposits that yield 6–7%, barely keeping up with inflation. He wants to save, but irregularity and competing demands constantly derail compounding.

      Anna (Switzerland)

      Anna earns the Swiss franc equivalent of ₹4 lakh a month—but her paycheck is already pre-divided. Roughly 10% flows to Pillar 1 (state pension), another 15% to Pillar 2 (employer pension). Anna adds CHF 500 monthly into a Pillar 3a ETF plan, which is tax-deductible. Health insurance premiums—high but predictable—are deducted like rent. What remains is for rent, groceries, and quality-of-life expenses. Anna’s spending is modest: public transport pass, supermarket shopping, occasional travel. But she has no financial stress, because the saving happens first. Over 10 years, her quiet contributions snowball into a substantial portfolio.
      
      

      Li Wen (Singapore)

      Li Wen’s monthly income is about S$6,000 (₹3.6 lakh equivalent). Right away, 37% of it goes into CPF across retirement, healthcare, and housing accounts. She has a ladder of Singapore Savings Bonds (SSBs)—adding S$500 every month—which she can redeem any time without penalty. Her MyMoneySense dashboard lets her see all balances at once, making budgeting effortless. Daily life? Modest. Lunch at hawker centers, MRT for transport, holidays planned but not extravagant. In the background, her CPF is compounding at a guaranteed floor rate, her SSB ladder grows liquid and safe, and her CDP account quietly holds a mix of Singapore REITs for income.

      
      
      

      

      The chart above models what happens over a decade.

      • Ramesh (India): Saving irregularly, averaging ₹15,000 per month with 8% return, he ends up with ₹27 lakh in 10 years. Respectable, but modest compared to his income.

      • Anna (Switzerland): Saving consistently ₹25,000/month at 6% return, her portfolio grows to ₹41 lakh. Her pension assets alone ensure she won’t worry about retirement.

      • Li Wen (Singapore): Saving ₹30,000/month at 5% return, her wealth grows to ~₹47 lakh, with rock-solid CPF balances and liquid SSBs.

      The difference is not income—it is consistency, structure, and government design. Anna and Li Wen don’t save more because they’re more virtuous. They save more because the system makes it automatic, visible, and safe.
      
      

       Lessons for India

      As Ramesh sat listening to Anna and Li Wen, he couldn’t help comparing their stories with his own. He worked hard, earned respectably, and managed his family responsibilities with pride. But when it came to money, life always felt like a balancing act. A festival here, a wedding there, the never-ending EMIs—somehow saving was always what got postponed. His colleagues, though, spoke of money as if it were quietly working for them in the background. That was the real difference.
      In India, saving is voluntary. You put money aside if you remember, if you can, if something urgent doesn’t come up. In Singapore and Switzerland, saving is compulsory and automatic. Their governments designed systems where a slice of every salary flows straight into pension and health funds, the way we in India can’t skip a school fee or an EMI. The habit is built into the paycheck. Imagine if here too, every Indian worker—whether in a factory, an office, or self-employed—had a portion of their income automatically routed to retirement. Saving would stop being a choice; it would become as natural as breathing.
      The products also matter. Li Wen’s face brightened when she described her Singapore Savings Bonds—simple, safe, and flexible. She could invest a little every month, earn steady returns, and withdraw anytime without penalty. It gave her both security and confidence. In India, people trust gold or land for the same reason: they feel real and safe. But government schemes are often rigid and bank deposits barely beat inflation. If we had our own “India Savings Bond”—trustworthy, liquid, and designed for small savers—families would have a reliable ladder to build wealth without fear.
      Equally important is visibility. Li Wen can open her MyMoneySense app and see her entire financial life in one place. Anna in Switzerland gets clear pension statements every year. Ramesh, by contrast, juggles multiple apps, passbooks, and receipts, never quite sure where he stands. This is not a lack of willpower, it is a lack of clarity. A single “MyMoney India” dashboard, showing EPF, NPS, SIPs, loans, and insurance together, could change household behaviour overnight. When Indians can see, they will save.
      And then, there is culture. Indians are generous, festive, and family-first. We spend big on weddings, jewellery, and celebrations—and there is pride in that. But the Swiss and Singaporeans spend differently. They live a notch below their means, not above it. They enjoy life but keep savings sacred. If Indian families shifted even a fraction of wedding or festival expenses into pensions and SIPs, our middle class would be one of the richest in the world within a generation.
      The lesson is clear. We don’t need to copy anyone, but we must reorder our priorities. Let saving come first, spending later. Let study come before luxury. Let wealth be quiet, not showy. If we do this, the next time Ramesh sits at a table with colleagues from abroad, he will no longer feel behind. He will speak with the same quiet confidence as Anna and Li Wen—secure in the knowledge that his money is working for him, silently and steadily, just like theirs.
      
      Moreover:-
      

      As the conference wound down, Ramesh walked back to his hotel room deep in thought. Anna and Li Wen hadn’t said anything extraordinary. They weren’t investment gurus or high-flying executives. They were ordinary middle-class professionals like him. And yet, they had a sense of calm about money that he rarely felt.

      What struck him most was how uncomplicated their wealth-building sounded. No chasing stock tips, no last-minute scrambling for tax-saving schemes, no sleepless nights about whether their children’s future would be secure. For them, saving and investing were not heroic acts of discipline. They were simply habits—woven into salary slips, government schemes, and everyday choices.

      Switzerland and Singapore had quietly built cultures where wealth grows in the background. Their people invest in education before luxury, live just a step below their means, and treat savings like any other essential bill. That is why Switzerland, with just nine million people, has over a million millionaires, and why Singapore, a city smaller than Delhi, has nearly half a million.

      India, by contrast, is still at a crossroads. We are a young country with rising incomes, digital rails like UPI, and ambitious families. But too often, we save what is left after spending, instead of spending what is left after saving. We pour money into weddings, jewellery, cars, and celebrations—joyful, yes, but often at the cost of long-term security. Our pension pools are shallow, our financial dashboards fragmented, and our tax rules unpredictable.

      The lesson for us is not to give up our culture of generosity or celebration. It is to bring in balance. To make saving automatic like an EMI, to create simple and safe products like Singapore’s savings bonds, to show families the full picture of their money in one place, and to reward patience instead of speculation. Above all, to change our mindset: to see education as the first investment, modesty as strength, and quiet wealth as the real luxury.

      If we take even a few of these lessons to heart, the future could look very different. A decade from now, millions of Indians like Ramesh will not feel insecure when comparing themselves with colleagues abroad. Instead, they will speak with the same quiet confidence as Anna and Li Wen, knowing their savings are compounding silently in the background.

      Because the secret of wealth is not luck, nor sudden windfalls. It is discipline made easy, and culture made patient. And that secret is one India can very much make its own.
      
      

      Copyright Notice

      © [2025] Shubham Kamal
       All rights reserved. This article, including its text, structure, and original ideas, is the intellectual property of the author. No part of this publication may be copied, reproduced, distributed, or adapted in any form or by any means (including print, digital, or social media) without prior written permission of the author. Unauthorized use, reproduction, or modification for commercial, political, or promotional purposes is strictly prohibited and may result in legal action under applicable copyright and intellectual property laws in India and internationally.

India’s ESG Boom: Fueled by Europe’s Sustainable Vision

 ESG investing is becoming a big deal in India and around the world. It’s a way to put your money into companies that care about the environment, treat people fairly, and are run honestly. ESG stands for Environmental, Social, and Governance. This article explains what ESG investing is, why it’s popular globally, how much money is in it, why people like it, where India stands, how the European Union helps, what the future looks like, why it matters, why you should invest, and what options you have in India—

ESG:Environmental,Social & Governance. 

ESG investing is about picking companies that do good while making money. The “E” (Environmental) means they work to protect nature, like using solar energy or reducing waste. The “S” (Social) means they treat workers, customers, and communities well, with fair pay and equal opportunities. The “G” (Governance) means they’re run transparently, without corruption. Unlike regular investing, which only focuses on profits, ESG looks at how companies impact the world. It’s like using your money to support a better future.Globally, ESG investing is a hit. People, especially younger ones like millennials, want their money to back companies that fight climate change or promote fairness. Big firms like BlackRock say ESG companies are safer bets for long-term growth. In 2020, the United Nations set Sustainable Development Goals (SDGs), a global standard for companies to show they’re sustainable. Many countries, especially in Europe, now require companies to report their ESG efforts. For example, the European Union’s rules make big companies share how they’re doing on ESG, making it a key part of investing worldwide.

So, how much money is in ESG? 

A lot! Globally, about $40 trillion was invested in ESG funds in 2020, which is 30% of all managed money. Experts say this could grow to $53 trillion by 2025, covering one-third of all investments. In Europe, ESG funds got €574.3 billion in 2023, showing huge interest. In the US, though, some investors pulled out $4.7 billion from ESG funds in 2024 because of debates about “woke capitalism.” Still, the global trend is upward, with ESG likely to cover half of all investments by 2025.

In India, ESG investing is still new but growing fast. India wants to hit net-zero carbon emissions by 2070, which needs $8-10 trillion in investments. The Securities and Exchange Board of India (SEBI) is helping by making the top 1,000 listed companies report their ESG performance. As of March 2024, India’s ESG funds manage ₹9,753 crore ($1.18 billion), up from ₹2,747 crore in 2020. Funds like the SBI Magnum Equity ESG Fund, with ₹5,472 crore, are leading. Big companies like Reliance Industries, aiming for net-zero carbon by 2035, are also jumping in. 

The European Union plays a big role in ESG, even in India. The EU’s European Green Deal aims for carbon neutrality by 2050, and they’re putting money into sustainable projects worldwide. The European Investment Bank (EIB) funds things like solar and wind projects in India, helping companies go green. In 2023, the EU’s Sustainable Finance Disclosure Regulation (SFDR) sorted funds into categories like Article 8 (promoting ESG) and Article 9 (fully sustainable), making it easier for investors to pick. The EU’s Horizon Europe program also funds green tech and innovation, encouraging Indian companies to adopt ESG practices with loans or grants.

Looking ahead, ESG in India is set to boom. SEBI’s strict rules and growing awareness will pull in more investors. The NIFTY 100 ESG Index, which tracks ESG-compliant companies, has grown 10% yearly, beating the NIFTY 100’s 8.7%. Globally, ESG investments could hit $33.9 trillion by 2026, and India will get a slice of that thanks to its focus on renewable energy and sustainable policies.

Why does ESG matter?
It supports companies that tackle big problems like pollution, unfair treatment, and corruption. This cuts risks like environmental fines or scandals, which protects your money. In India, where pollution and inequality are real issues, ESG investing can make a difference while giving good returns.So, why should you invest in ESG? It often gives better returns because ESG companies are well-managed. Your money supports a cleaner planet and fairer society. As the world shifts to sustainability, ESG investments will likely grow in value. Plus, it feels good to back companies that match your values, like fighting climate change.In India, you’ve got plenty of ESG investment options. You can try ESG mutual funds like the SBI Magnum Equity ESG Fund, Quantum India ESG Equity Fund, or Mirae Asset ESG Sector Leaders ETF. There are also ESG ETFs that track indices like the NIFTY 100 ESG Index or S&P BSE 100 ESG Index. For wealthy investors, Alternative Investment Funds (AIFs) like Avendus India ESG Fund are an option. Green bonds, which fund eco-friendly projects, are another choice, backed by SEBI’s rules. You can also invest directly in stocks of companies like Reliance Industries, which are focusing on sustainability.

ESG investing lets you grow your money while helping the world. With global investments set to hit $53 trillion by 2025 and India’s ESG market growing, it’s a great time to start. The EU’s support, through funds like the EIB, is helping India go green. By picking ESG funds, ETFs, or green bonds, you can earn returns and build a better future. Start small, stay informed, and let your money do good.

Note:_Investing in ESG (Environmental, Social, and Governance) funds, mutual funds, ETFs, green bonds, or stocks involves risks, and past performance is not a guarantee of future results. The value of investments can go up or down due to market fluctuations, economic conditions, or other factors. ESG investments may also face unique risks, such as changes in regulations, greenwashing, or unreliable ESG data. This article is for informational purposes only and does not constitute financial advice. Before investing, consult a qualified financial advisor to assess your financial goals, risk tolerance, and suitability of ESG investments. The author and publisher are not responsible for any losses or damages resulting from investment decisions based on this article. Always conduct your own research and verify information before investing.