Many Singaporeans want to be rich and retire early in Singapore. But not many of them are keen to invest the time and energy to gain the knowledge required to be a millionaire. I came across a recent article by well-known Hong Kong billionaire, Li Ka Shing who shared some tips on how to become rich.
In that article, he outlined a unique plan that can help to improve one’s financial destiny. His approach is refreshing to me because so far I have not come across anyone with a similar approach. Basically, the gist is to split your income into five portions.
1st portion (Expenditure)
The first set of fund is to cover your living expenses. He elaborated that one should take hardship when young and eat simple. But of course, being able to pay your bills and fill your stomach on a daily basis will not make you rich. You need to enhance your income.
2nd portion (Network)
The next set of fund is to expand your social circle. Treat friends who are wiser, richer or have helped you in your career. On this point, I don’t quite agree with his philosophy. Networking can be useful to your career but if you do it too obvious and on a monthly basis, sometimes it can backfire. People might question your motive and you might even be seen as trying to take “short-cuts”.
3rd portion (Improve your knowledge)
Third portion is to invest in yourself and improve your knowledge through books and courses. Put what you learn to use and share your thoughts with others so as to gain credibility. On this point, I fully agreed with Li Ka Shing. It is always important to constantly upgrade your knowledge but one of my greatest weaknesses is that very often, I don’t put to practice what I learned from the books. Going forward, this is one area I need to improve.
The other aspect is to acquire the art of selling as successful businessmen are good sellers who can sell their “dream and visions”. I certainly don’t think I can be a good salesperson, but nevertheless, I think it is important for me to improve my presentation skill in order to enhance my career progression.
4th portion (Holiday)
The fourth portion is to go for holidays to recharge yourself and experience life. Well, most Singaporeans love to travel so I don’t have to elaborate on this point.
5th portion (Save and invest)
For the last portion, Li Ka Shing advocated building up your savings and used it to set up a small business or invest the monies. I find this piece of advice useful because when you take a small measured approach to start up a business or invest in shares, even if it failed, the risk would be limited.
The aim is not to make big money but rather to boost your confidence level and validate your thoughts.
These are money wisdom from a highly respected person who went through so much hardships in life and managed to become one of the richest men in the world. I particularly like his philosophy on “When you are poor, don’t be calculative. When you are rich, let others pamper you”. This is the profound way of life which you cannot find in the books.
I am grateful that Li Ka Shing shared his money wisdom for free to everyone. This was exactly my aim when I started this blog. My social mission is to level up Singaporeans’ knowledge on personal finances and share wisdom for free. Hope you will accompany me on this learning journey.
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SG Wealth Builder