It's worth a shot, don't you think?
Hong Kong billionaire Li Ka-Shing may be retiring, but it doesn't mean he can't still dole out invaluable financial advice. He's successfully shown us how he has amassed his wealth, so why not take a leaf out of his book?
The average starting pay in Singapore is above S$2,000. So assuming you start off with a S$2,000 paying job, this breakdown can easily be applied in your life.
The Li Ka-Shing money advice starts with putting your money into five sets of funds. The first $600, second $400, third $300, fourth $200, fifth $500.
The first set is for living expenses, budgeted to S$20 per day. Li Ka-Shing says that living a simple life means you only need to spend about S$500 to S$600 on food per month. "When you are young, the body will not have too many problems for a few years with this way of living," he says.
For the second set of funds, the billionaire suggests spending it on friends and expanding your network. Budget your phone bill to about S$100. You can buy your friends a few meals a month, with the remainder S$300.
Go out with people who are more knowledgeable than you, richer than you or people who have helped you in your career. Make sure to do that every month. He believes that after one year, this network of friends would have generated tremendous value for your reputation and influence.
For the third set of funds, he suggests that it should be utilised to learn. Use S$50 or S$100 on books or online subscriptions to learn valuable lessons and strategies. Use the stories told in those books to share with others to improve your credibility and enhance affinity. Then save up the remainder S$200 per month to attend a training course.
Later on, when you have higher income or additional savings, participate in more advanced courses or masterclasses. That is where you get to meet like-minded friends who are not easy to come by.
On the fourth set of funds, his advice is this: Use it for holidays overseas. 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 had so many different experiences. Use that experience to recharge yourself so that you’ll continually have passion in your work.
And finally, for the fifth set of funds: Invest. Save the S$500 in your bank and grow it as your initial startup capital. The capital can then be used to run a small business or investments. Look into buying long-term investment plans and get long-term security on your financial wealth being of yourself and your families. This is the first step in growing your wealth to buy a car and house in the future.
He says, if after your first year you are still earning the same, it means you have not grown as a person. But even if you do earn more, working hard is still crucial.
Find a part time job in sales, he suggests. "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. All successful entrepreneurs are good sales people. They have the ability to sell their dream and visions," he adds.
"You’ll also meet many people that will be of value to you in the later part of your career. Once you’re in sales, you will also learn what sells and what not. Use the sensitivity of detecting market sentiments as a platform for running your business and in the identification of product winners in the future."
"Try to buy minimal clothes and shoes. You can buy them all you want when you’re rich. Save your money and buy some gift for your loved ones and tell them your plans and your financial goals. Tell them why you are so thrifty. Tell them your efforts, direction and your dreams," he says.
"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!"
Like this piece of Li Ka-Shing money advice?
Read more articles.