Li Ka-shing on how you can buy a car and house in 5 years

AsiaOne

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.

Li Ka-shing's tips on how to make more money
  • 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.
  • Lee suggests that wage-earners put their monthly salary proportionately into five sets of funds with different purposes.
  • The first fund with 30% of your salary, second with 20%, third with 15%, fourth with 10%, and fifth with 25%.
  • 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.
  • When you are young, the body will not have too many problems for a few years with this way of living, he says.
  •  This will make you well off. Your phone bills can be budgeted at RMB 100. You can buy your friends 2 lunches a month, each at $150.
  • Who should you buy lunch for? Always remember to buy lunch for people who are more knowledgeable than you, richer than you or people who have helped you in your career. Make sure you do that every month.
  • After one year, your circle of friends should have generated tremendous value for you. Your reputation, influence, added value will be clearly recognised. You'll also enhance your image of being good and generous.
  •  Monthly spend about RMB 50 to RMB 100 to buy books. Because you don't have a lot of money, you should pay attention to learning. When you buy the books, read them carefully and learn the lessons and strategies that is being taught in the book. Each book, after reading them, put them into your own language to tell the stories.Sharing with others can improve your credibility and enhance the affinity.
  • Also save up $200 per month to attend a training course. When you have higher income or additional savings, try to participate in more advanced training. When you participate in good training, not only do you learn good knowledge, you also get to meet like-minded friends who are not easy to come by.
  •  Reward yourself by traveling at least once a year. Continue to grow from the experience of life. Stay in youth hostels to save cost.
  •  In a few years you would have travelled to many countries and have different experiences. Use that experience to recharge yourself so that you'll continually have passion in your work.
  • Save the $500 in your bank and grow it as your initial startup capital. The capital can then be used to do a small business. Small business is safe. Go to wholesalers and look for products to sell. Even if you lose money, you will not lose too much money.
  •  However, when you start earning money, it will boost your confidence and courage and have a whole new learning experience of running a small business.
  • Earn more and you can then begin to buy long-term investment plans and get long-term security on your financial wealth being of yourself and your families. So that no matter what happens, there will be adequate funds and the quality of life will not decline.
  • Well, after struggling for a year and if your second year salary is still RMB 2,000, then that means you have not grown as a person. You should be really ashamed of yourself. Do yourself a favour and go to the supermarket and buy the hardest tofu. Take it and smash it on your head because you deserve that.
  •  Doing sales is challenging, but it is the fastest way for you to acquire the art of selling and this is a very deep skill that you will be able to carry it for the rest of your career.
  • No matter how much you earn, always remember to divide it into five parts proportionately. Always make yourself useful. Increase your investment in networking. When you increase your social investment, expand your network of contacts, your income also grows proportionately.
  • Increase your investment in learning, strengthen your self confidence, increase investment in holidays, expand your horizons and increase investment in the future, and that will ultimately increase your income.
  •  Soon, you will be able to gradually realise your various dreams, the need to buy your own house, car, and to prepare an adequate education fund for your child's future.
  • Life can be designed. Career can be planned. Happiness can be prepared. You should start planning now. When you are poor, spend less time at home and more time outside. When you are rich, stay at home more and less outside. This is the art of living.
  • There is nothing wrong with being young. You do not need to be afraid of being poor. You need to know how to invest in yourself and increase your wisdom and stature. You need to know what is important in life and what is worth investing in.
  • You also need to know what you should avoid and not spend your money on. This is the essence of discipline. Try to avoid spending money on clothing, but buy a selective number of items that have class.
  • Once your livelihood is no longer an issue, use the remainder of your money to pursue your dreams. Spread your wings and dare to dream! Make sure you live an extraordinary life!
  • Everybody makes mistakes. It's what you learn from the mistakes, and promising yourself not to repeat those mistakes that matters. When you miss opportunities, don't dwell on it, as there are always new opportunities on the horizon.

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.

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