Last few months (up to close to a year) of my life, I’ve chanced across a few examples of really worrisome and unwise financial decisions:

1. I need to buy a branded/prestigious/expensive (watch/car/product whatever) so that people respect me more and/or I get the job/person I want and/or I feel good. And worse – I use my credit card to do this.

2. As above, but include “latest” eg latest gadget, latest whatnot

3. I just quit my job because I-hate-my-boss/my-boss-hates me, and I totally ignored that I need to pay $2500 a month based on shit I’ve bought (based on #1 and #2 above)

4. I am selling my house to upgrade to a larger one for someone (lover/son/daughter/son-in-law/daughter-in-law) and even though the sales of my house is 75% of the cost of the new house, because they have to take loans and because I love so-and-so, I am not putting the new house in my name at all.

5. I don’t believe in saving at all, since we may die tomorrow.

6. Even though I know life and general insurance is good, I am not buying any for myself, my spouse and my kids.

7. My personal mistake: using credit cards to learn how to do internet marketing from scammers who kept cheating idiots like me #retardme (kept digging a deeper hole)

…and more.

bad financial decisions

I totally feel like the guy in the picture above, my I think I’d pull all my hair out.


I know the 5 above are just SOME of the bad financial decisions in the world, but these are actual works and decisions I’ve seen people in my world do, and still do today.

These are not stupid people, on the contrary, they are highly educated and smart.

There are 100% smarter than me.

In terms of hierarchy, what I recommend these people to do is the usual basics:

  • Cut unnecessary expenses ruthlessly.

I am more than happy to spend money on stuff I LOVE. But not on stuff that is out of habit/routine – which is why we don’t spend money on stuff like Netflix (ugh, idiot box), high end phone plans, cars, watches and anything that we don’t really care about.

My phone tells time well. And buses, trains and cabs take me to places well.

  • Insurance.

It is HIGHLY RESPONSIBLE to have at least health and termed insurance (as life insurance can be pricey) to hedge against large risk of  large medical and treatment bills for hospitalization, accidents and critical illnesses that can cripple and bankrupt families.

Do not take unnecessary risks

  • Saving Ruthlessly 10-50% Of Income And Bonuses To Invest Into Stable Defensive Dividend Stocks.

We have a fixed number of active working years, usually retiring between 50-70 years old (I aim to retire by 40-45 years old); so we need to plan in advance.

Remember the statement “I dont save because I may die tomorrow” – yes, that is true, but check the stats – people usually live to between 60-80 years old, and so if you’re 30…you generally have 30 more years at least to live.

I aim to have ongoing cashflow that continues to pay me even as I grow older and even if I’m unable to work, it’d continue to pay me my dividends and interests. If I die early? Fine, it’s been planned for as well.

  • Do Not Take Unnecessary Risks

It is not about “being heartless” but truly, it is about being fundamentally basic about loving and taking care of oneself. Don’t mess shit up if you can help it.

Any risks that one takes must be a combination of very low risk (less than 10% chance of failure) and very disproportionate return (more than 20-30% higher than chance of failure). This is to ensure the working model that my rate of effective return is always much higher despite factoring in the chance of failure.

Eg: Project A is a series of 10 projects with flat 10% chance to fail, but each mini-project has a return of up to 50%. So even with this, even if EIGHT mini-projects fail and TWO mini-projects make it, I’d have “lost 80% but made 100%” – still ahead by 20%.

  • Not Taking Necessary Low Cost Risks

This one is a bonus point for people – where one SHOULD consider taking small risks to learn a new skill or learn to build something that has good potential upsides.

An example is learning how to build an income-generating online business with Solo Build It – just USD 299 per year and you learn how to build an entirely new business that is low cost and you may well fire your boss, spend more time with children or move anywhere in the world.

Low risk and low cost with close to unlimited upside. Of course, there is A LOT of work – it IS learning how to build a proper online business, after all.



I dont quite get it – is there something I’m missing? Why do people make these silly and bad bad financial decisions?

I thought IT IS quite straightforward?

…or its natural to me but not natural to them?


1. Make as much as possible.

2. Spend less than what you make or as little as possible. Ideally save more than 50% of what you make.

3. Invest ruthlessly in very defensive, dividend paying stuff (I tend to avoid growth stuff)

4. Live off dividends and interests and passive income. All active income saved goes to #3.

5. Anything speculative needs to be very low risk and have disproportionately high returns to counteract the risk. Any expenses that are “new/unique” needs to be discussed and decided. Generally investments need to have very clear and proven ROI and nothing speculative.

6. Taking Necessary Low Cost Risks With Unlimited Upsides. An example is learning how to build an income-generating online business with Solo Build It – just USD 299 per year and you learn how to build an entirely new business that is low cost and you may well fire your boss, spend more time with children or move anywhere in the world.

Low risk and low cost with close to unlimited upside. Of course, there is A LOT of work – it IS learning how to build a proper online business, after all.

7. Rinse and repeat.

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About NigelChua.com



Hang around here for some time, you’d see that I don’t well with hype or bullshit. I can smell that typically a mile away, and I hate that shit too.

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