Li Ka Shing on Budget For Success.

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Li Ka Shing on Budget For Success.

Li Ka Shing a well known Hong Kong tycoon shared how you can budget yourself to be more successful in life. Li Ka Shing started his business at age 22 with borrowed capital from friends and family and today he is worth USD 32.8 billion. If he can do it why can’t we? His life motto is ‘Always be industrious and the virtuous welcome onerous duties’ from the Confucian manual I Ching also known as ‘Book of Changes’. To put it in simple words it means that individual should work hard but at the same time do not sacrifice righteousness. Throughout his life, Li works very hard usually 16-17 hours a day and it is estimated that he has given away a third of his assets to support his charity.

His advice is pretty straight forward to getting your car and house in 5 years in Hong Kong. Assuming that your income is  HKD 2000 you would have to divide your fund into 5 different sets. The first set is $600, second $400, third $300, fourth $200 and lastly the fifth fund $500. The purpose of each fund are stated as below:

First set of fund- For living expenses

The second set of fund- To make friends and expand your interpersonal circle

The third set of fund- To learn and gain knowledge or skills

Fourth set of fund- Use it for travel

Fifth set of fund- For Investment Purposes

Typically a young graduate from Singapore will earn around SGD 2000 to SGD 3500 net after deduction of CPF. Assuming that you are earning SGD 2000 how can you live and budget within that amount of income? Li Ka Shing has divided 5 sets for different purposes.

Assuming your starting salary is SGD 2000 monthly in Singapore this is how you can manage your budget.

For your first set of fund

Rent                    –         $550

Food                   –         $300

Transport         –        $100

Phone bill         –        $50

Total                    –       $1000

You’re left with $1000. How can you divide $1000 among your other funds?

For your second set of fund-

If you don’t have to pay rent congratulations you manage to save extra $550 and you can divide it into your other sectors however if you would have to pay rent then you’re left with $1000. Li Ka Shing mentioned that he likes to buy meals instead of a coffee as coffee is too common and it implicates that the person’s time is not worth your money. He is known for advising people to buy meals instead. However, if you’re left with a limited budget you can buy cheaper meals for 2 friends with a budget of $40 per meal. Remember the purpose of this is to expand your interpersonal circle. Remember to buy lunch for people who are more knowledgeable than you, richer than you or people who have helped you in your career. If you do that monthly for a year your group of friends should have a create vast value for you and you will also create a reputation for being good and generous.

For your third set of fund –

For your third set of fund, you may budget $210 and invest in classes or books to gain knowledge or skills. You may pay for classes through instalment depending on what classes you need to increase your personal value. You can go for investment and property classes to learn about investment to prep yourself for investing when you have the capital. You may also use the budget to buy books to read. There are one common characteristic in all successful people which is their love for reading. As there is a saying goes A reader lives a thousand life’s before he dies. The man who never reads live only once.

For your fourth set of fund-

This is my favourite fund of all, the travel fund. You may budget to save $210 per month. Of course, with only $210 you may only purchase your flight ticket to Bangkok but always aim to at least travel once a year. If you have saved $210 for 12 months you would have at least save $2520 per year. You can opt to go for more budget travelling style and travel to more countries and plan your trip’s ahead. Why is it important to travel? Li Ka Shing states that it is important to recharge yourself so that you’ll continually have passion in your work.

For your fifth set of fund-

Four your fifth set of fund you should budget at $500. The purpose of this fund is for investment purposes. For Li Ka Shing, he saves it up for his capital. If you save $500 per month you will save $6000 per year. You can use this money to buy health insurance, bonds or you can save more to open your own start up. He mentioned that after struggling for a year your salary should increase as if your salary did not increase means you have not achieve personal growth.

In conclusion, he reminded that no matter how much you earn always divide the 5 parts proportionately. Though the generation have changed and many people in this generation do not focus on working hard anymore but more on working life balance but I personally still truly believe in working hard and enjoy the success after working hard just as the saying Li Ka Shing always tell his children “The fruit that you eat will never taste as beautiful as the fruit that you ate during the turmoil”.

 Spread your wings and dare to dream! Make sure you live an extraordinary life

In his original article, he gave a lot of life advice’s that I find inspiring.

Rachael Tan About the author

Tat love's travelling, adventure's and judo! She greatly believe in "Nothing is Impossible" and she even got it tattooed on her back. She wishes Hakuna Matata to everyone. Just be happy always <3