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My passive income from 2015 all gone!

Sunday, May 15, 2016

I always say that we have to be careful to avoid activities which lead to wealth destruction, especially if we want to achieve financial freedom at a faster clip. 

Even though I have never specifically said what I consider to be wealth destructive, I suspect that, intuitively, all of us know what they are or am I too optimistic?

I guess in today's world, many things can be wealth destructive and it would be quite difficult to list down every single wealth destructive activity. So, how do we know if something is wealth destructive? 

I might be putting my neck on the chopping block here but, in a nutshell:

As long as something does not create wealth directly or indirectly but consumes wealth to keep it going is wealth destructive.

If we want more of something, we don't want to do anything that will destroy it. So, if we want to be wealthier, we don't want to do anything that will destroy wealth. 

Simple logic, right? 

Simple logic this might be but it is not easy for many to adhere to.

Believe me, however, when I say that it might be difficult at first but, after a while, we will get used to the virtuous cycle of wealth creation. 

It will become easier. 

It will become a habit.

Remember that as we grow older, we become creatures of habit and it could be harder for us to change. Know some older folks with bad habits that they cannot kick? 

So, we should try to acquire good habits as soon as possible. The best time to start is always now.

In recent months, however, I wondered if a good habit could eventually become a bad one?

Everyone knows that AK is pretty frugal and is very careful with spending money but, actually, AK is quite happy to spend money on his family and is quite generous even with friends. It helps that that AK's family is small and friends few, maybe. 

However, AK was not as ready to spend money on himself.


AK has been learning to treat himself better. He bought new clothes, basically renewing his whole wardrobe. Well, he didn't have much of a choice, having lost quite a bit of weight. He also has healthier (and costlier) eating habits now.

AK sold his car and was without a car for 2 months but now has a new car, a car that costs almost as much as his passive income for the whole of last year!




OMG! 2015's passive income gone, all gone!

What happened?

AK has some friends and readers to thank for this transformation. Without their suggestions, nagging and, sometimes, scolding, AK would not have transformed. 

Why use the word "transformation" and not "improvement"? 

Well, is it an improvement?

I used to think that friends who keep encouraging us to spend money are ζŸε‹ which means "bad friends". I remember a Chinese movie in the 80s with this title too.

Could friends who keep encouraging us to spend money actually be good for us?

I am so confused now. 


I blur.

Related posts:
1. A car loan is different...
2. My food bill grew... 
3.. Get a Mercedes Benz...


tong said...

why sudden change of mind to buy new car after 2 months from selling existing car?

AK71 said...

Hi Tong,

I got a very good deal. ;p

arithmos said...

Finally ...yes start spending. I do think another angle is on how to spend your passive income and not to always remain frugal. It is not sustainable and one will find himself giving in to wild spending binges. Money needs to move around. But it must have been an expensive car to consume all the passive income.

AK71 said...

Hi arithmos,

It is an inexpensive expensive car. ;p

The running cost is actually lower than my old Mazda because it runs on diesel. Plus $XX,XXX green rebate from the government and throw in free servicing for X number of years... Well, it was a persuasive combination.

Honestly, once we are used to having a car, it is hard to get back to a life without one. So, if you don't have a car yet, don't get one. -.-"

Cory said...

Is good to have a Right Balance ! Wife Next ?

LKH said...

Can share the good deal? I am also looking for a new car :)

Sanye ◎ δΈ‰ι‘΅ said...

A new car that cost almost all you passive income in 2015? I must be a continental car.

Congrats to your new car!

victorlsl1 said...

you got the BMW active tourer!

Singapore Man of Leisure said...


Now we're talking!

LOL! Must be saving this post for a long time right?

Limpeh got car! You have or not? Don't have? Then don't talk "male-chicken"!


You have another ace - Limpeh got freehold condo - but we save that for when you get hit in the face by a shoe again... Shhh...


Just testing your geekiness. How's my Littlefinger impersonation?

arithmos said...

Okay, I want that car, I need that to give a hint what it is?

AK71 said...

From my FB page:

Jeremy Yeo:
Ak, by the way you can fins smart energy diesel pump station. Its much cheaper then at normal kiosk.
But limited area for reloaded ur thirsty car.

Thanks for this. They have two pumps. Mandai and Serangoon N. After 25% discount, 84c a litre. Not bad but until end June, I pay 82c a litre at SPC. Will file for future reference.

Jeremy Yeo:
Really is AK. Nothing escapes ur eyes and ears πŸ˜ƒ

Aiyoh. Dun liddat say. I didn't know about Smart Diesel. Haha. Hmm... Unless savings is more substantial, might not be worth going so far for me to refuel. .... once current promo ends in June, using POSB Everyday card at SPC I pay 85c a litre. That's a 1c difference. ;p

Jeremy Yeo:
Yeah True. Its along the way for me to work. Thats why its ok for me.
Anyway wise choice to get diesel instead of petrol.

AK71 said...

Hi Cory,

A car is a major expense in Singapore. It provides enough balance, I reckon. ;)

I don't want to rock the boat too much and lose my balance. ;p

AK71 said...


You might want to contact BMW and see if the deal is still on. There aren't many diesel models available. ;)

AK71 said...

Hi Sanye,

Kamsiah you. Yup, you are right. It is. :)

AK71 said...

Hi Victor,

Wah! You are in the know about cars! Well, it is one of the diesel models lah. ;)

AK71 said...


In the past, I might write 2 or 3 blog posts a day, publish one and keep the rest for later. Not anymore. I don't write as much as I used to. Lazy lah. -.-"

Actually, not just this car. My last car, the Mazda, was free too. I won that in a lucky draw. ;p

Oh, yes. My condo is free too due to downsizing. Your memory is good. ;)

To everyone out there, throw only branded shoes at me, ok? I can make some pocket money selling them. ;p

AK71 said...

Hi arithmos,

LOL. You and LKH same same. ;p

Potatoish said...

AK buy Porsche ah? heard posh runs on diesel >,<

AK71 said...

Hi JQ,

I don't think my one year passive income is enough for that... -.-"

INVS 2.0 said...

Hi Ak,

Congrats on your 2 series active tourer diesel. :)

For me, a car is unnecessary for my lifestyle. I am currently doing well on an $1k electric unicycle that brings me around this little sunny island. Perhaps next time I might get an electric Tesla 3 provided our govt is supportive of it. :D

temperament said...

"The money you have wont makes you happy. It is only when you spend it makes you happy. And not spend it haphazardly but in your own purpose.
Whether for a car or your family or friends doesn't really matters.
"Hua Hee To Ho".

AK71 said...

Hi INVS 2.0,

The same thing could be a want to one person but a need to another. A car was a need in the past for me. Now, it is probably more a want. It could become a need again in future as I will have to take care of my ageing parents.

We do need to encourage moving from petrol to less pollutive forms of fuel for our cars, I feel. It is only environmentally responsible. :)

AK71 said...

Hi temperament,

Kamsiah you for the stamp of approval. ;p

FFE said...

Hi AK,

Sorry to burst your bubble regarding less politics vehicles.

Diesel cars emit different types of pollutants. Now London is paying a price after years of pushing for more diesel cars.

coconut said...

i knew it it was a car even brfore you reveal what is it!

that was also my first big ticket item when i got money to buy, same same! now i'm into sport cars haha...

good luck my friend.

AK71 said...


Oh, dear... Trouble never ends. Trouble just takes on a different form. -.-"

AK71 said...

Hi coconut,

You so clever. ;)

A sports car? I think that's a no go for me. Not very practical although I would love the powerful engine. ;p

victorlsl1 said...

I just got my grand tourer on 11 may. Pretty pleased with it. It was an unexpected choice but I have been impressed with the features and the fuel economy is awesome compared to my previous ride

AK71 said...

Hi Victor,

Having no prior experience with diesel cars, I must say that I am impressed. Let's hope that I stay impressed, if you know what I mean.

I think I will have a blog post on this later. ;p

AK71 said...

llch01 said...
First time commenting here. there must come a time when u have enough to last u for the rest of your life, right? Let say u are 50 yo and u have 3mil in assets then u can spend at least 6k a month if u use 40years more. then do u have to do this? of course presuming u are not going to leave anything behind for your NOK

AK said...
Hi llch01,
I hear you and I hear many others who have said similar stuff to me. :)
I have become less tight fisted with money in recent years. Really, I have. ;)
Saw this blog, for example?
My passive income all gone... :(

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