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. Li Ka Shing’s story is one of rag-to-riches, so his success is particularly inspiring.
Like many of you, I share the same aspiration to achieve financial freedom. While I have not achieved Li Ka Shing’s wealth status, his strategy resonates with my philosophy of having a growth mindset. This means that one should put in the extra effort to develop new skills and knowledge. Take note that none of his pointers below encourages you to hoard money like a scrooge.
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 because mindlessly cutting and tracking your expenses will be not be sustainable.
The key is having the discipline to define what are the “needs” and “wants” in your life. In doing so, you are less likely to over-spend or spend carelessly. If one cannot manage his personal finances, what make you think that he can handle bigger tasks in his job? Learn to manage