They chose financial independence over home ownership.

This is somewhat extreme but watch how this Canadian couple chose financial independence over home ownership.  They are in their 30s and,...

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"E-book" by AK

Second "e-book".

Another free "e-book".

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ASSI's Guest bloggers

"Husband lost his job and my savings is zero."

Friday, October 6, 2017

Reader said:

I just recently read your blog but i really enjoy reading them. Hard truth with humor.

I am 35 and a mother of 2, and I am so embarrassed to said that I have no war chest, emergency funds at all. All I have is debt that I have to pay for another 7 years for the whole family etc.

Me and my hubby are not prudent in money and sad to say we always quarrel because of this especially when my hubby was asked to leave his good paying job.

I have to dig my own money to pay with a lot of stuff and seeing my account set back to zero really angers me.

I only came across investing few months ago and bought penny shares for 1 lot or half a lot. And also start to buy some blue chips shares and gold accumulation plan for $100 per month.

Oh, I have to admit I like shopping on Taobao and will spend few hundreds to buy things for myself and kids.

As much as I am aware my own problems but I really need someone like you to guide me in managing my financial better.

AK said:

Welcome to my blog. :)

Since you know my blog is about hard truths, I have more for you here:

1. You need an emergency fund. You shouldn't be investing in stocks and putting money in gold if you do not have an emergency fund. 

Read related post #1.

2. Review your expenses and see if you are able to cut back on expenses. I am sure Taobao can be Taotai (For non-Chinese reader, this is Chinese for "abandon"). Ask yourself a few questions. 

Read related post #2.

3. After your personal balance sheet has strengthened, then, think about investing. Be careful to differentiate between investing and speculating. 

Read related post #3.

Remember, no one cares more about our money than we do. If we don't care, no one will. Take care and do it properly. :)

Related posts:
1. Emergency fund.
2. 7 pertinent questions.
3. Investment philosophy.


MSAPersonalFinance said...

Hi Ak71,

May I know what will happen when husband has a credit card debt, let's say $100K and not able to pay back?
Will his wife be forced to terminate insurance policies, liquid stocks etc to pay the debt on-behalf of the husband?

AK71 said...


That would be a nightmare.

To avoid bankruptcy, debt has to be paid one way or another.

What they do would depend on what they have.

Venkatesan said...

@MSA - The short answer is No. Each adult is responsible for his/her own debts. We no longer live in ages where the entire family (even future generations!) was beholden to debt of one of its members :) What will happen is that the concerned person has to go through the bankruptcy process - googling will show you how its done. for eg, see

The Wife will not be required/forced to spend any monies. But unless the marriage is going to end, practically speaking she will be doing some of the above (liquidate stocks etc) you suggest. Our govt has done a good job, please take a look here:

At the end, no need to panic and liquidate all assets, scrap every single cent - just get the necessary help (either credit counseling or a lawyer) and do the needful.

Hope this helps

AK71 said...

Hi Venkat,

I sidestepped MSA's question. ;p

Thanks for providing a detailed reply. :)

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