{"id":5548,"date":"2024-02-12T16:28:00","date_gmt":"2024-02-12T16:28:00","guid":{"rendered":"http:\/\/www.investollo.com\/?p=5548"},"modified":"2024-02-22T06:50:22","modified_gmt":"2024-02-22T06:50:22","slug":"advice-to-the-young-from-hong-kongs-richest-man-likashing","status":"publish","type":"post","link":"https:\/\/www.areyouready.sg\/advice-to-the-young-from-hong-kongs-richest-man-likashing\/","title":{"rendered":"Advice to the young from Hong Kong’s richest man – Li Ka Shing"},"content":{"rendered":"\n

Advice to the young from Hong Kong’s richest man – Li Ka Shing<\/a>. He talks about splitting our income into 5 parts.<\/h2>\n\n\n\n

30% – Living expenses. (i.e Food, transport)<\/strong><\/p>\n\n\n\n

20% – Social expenses. (i.e Phone bills, socialising)<\/strong><\/p>\n\n\n\n

15% – Education & Self-improvement.<\/strong><\/p>\n\n\n\n

10% – Travelling abroad.<\/strong><\/p>\n\n\n\n

25% – Investments, for savings or for starting a business.<\/strong><\/p>\n\n\n\n

*The list of which expenses are explained are non-exhaustive.<\/p>\n\n\n\n

This allocation is on the basis of those who live in Hong Kong or China, using a mean salary of RMB $2000 (approximate SGD $400). For a person who lives in Singapore, it is quite a tall order to follow these recommendations, particularly for those who earn less than SGD $1,500 a month. Adhering these allocations also require strict financial discipline and rigid spending, in addition to the fact that each and every individual has a different spending pattern every month.<\/p>\n\n\n\n

Thus, there are a few adjustments I have made to the allocations based on a take-home pay of SGD $1,500 (after CPF deduction).<\/p>\n\n\n\n

1. 55% ($825) – Living Expenses. (i.e Food, transport)<\/p>\n\n\n\n

2. 10% ($150) – Social Expenses. (i.e Phone bills, socialising)<\/p>\n\n\n\n

3. 10% ($150) – Education & Self-improvement.<\/p>\n\n\n\n

4. 10% ($150) – Travelling abroad.<\/p>\n\n\n\n

5. 15% ($225) – Investments<\/a>, for savings or for starting a business.<\/p>\n\n\n\n

Spending may vary from month to month, but ensure that each category does not deviate by more than 5%, except for investments; it is highly recommended that this portion at least remains the same each month or increases as time passes. Also, it would be common sense to offset whatever excess that you may have spent in one month on the next month by spending less.<\/p>\n\n\n\n

Some additional tips regarding this expenditure:<\/strong><\/p>\n\n\n\n