Having trouble envisioning yourself with your own home and a car in the near future? The richest man in Asia, Li Ka-shing, has some tips for you.
In an article posted on CEO Connectz, Li Ka-shing, who is worth US$31 billion, talks about how one can afford to live comfortably with a house and a car even if their monthly pay is below $500 a month.
Lee suggests that wage-earners put their monthly salary proportionately into five sets of funds with different purposes. After setting aside for daily necessities and social activities, one should spend on books for learning, travel and invest with the rest of the money, he says.
The Hong Kong business magnate, who was also a school dropout, also gives tips on how to spend the money in each of the funds set aside. For example, one should treat only those who are richer than them or more knowledgeable than them to meals. This way, your social circle will expand, making room for yourself to grow.
At the end of one year, a person's wealth should grow. If your income does not increase, then you have been doing it wrong and are failing to learn anything, Lee adds.
The trick to earning more is to learn more and investing in people and things that are worth your time, he says in the article. "When you are poor, spend money on others. When you're rich, spend money on yourself," he added.
Here is a translation of the article 'Li Ka-shing teaches you how to buy a car and house within five years':
Suppose your monthly income is only RMB 2,000 (S$415.60), you can live well. I can help you put money into five sets of funds. The first with RMB 600, second RMB 400, third RMB 300, fourth RMB 200, fifth RMB 500.
The first set of funds is used for living expenses. It's a simple way of living and you can only be assigned to less than twenty dollars a day. A daily breakfast of vermicelli, an egg and a cup of milk.