“I want to improve my life and finances. I want to be free to travel the world. I want to have financial freedom.”
If you ever said these words, you’re not alone. What’s more? You have every right to want a better life for yourself. Heck, I never met anyone who wanted to be poor!
Couple of months ago, I stumbled on Li Ka-Shing, a Hong Kong billionaire. He outlined an inspirational five-year plan to improve one’s lot in life and I must confess that since I began to follow his teachings, my life improved drastically.
Do you want a better life? If yes, you’re in luck because you’ve come to the right place. Without further ado, here are Li Ka-Shing’s wisdom nuggets to changing your life.
Money Wisdom Nuggets
Whatever your monthly income is, divide it into five sets of funds. Suppose your monthly income is only $2,000, you can live well. Divide it into five sets of funds: the first $600, second $400, third $300, fourth $200, fifth $500.
1. First set of funds ($600): This is for living expenses. Live simple. Spend less than twenty dollars a day. Eat a basic breakfast. Have a simple set lunch: a snack and a fruit. For dinner, go to your kitchen and cook your own meals that consist of vegetables dishes and a glass of milk before bedtime.
While you are young, your body will not have too many problems for a few years with this way of living because you are still strong and adaptable.
2. Second set of funds ($400): This is to expand your interpersonal circle. To make friends, you need to expand your interpersonal circle.This will make you well off. Your phone bills should be budgeted to a minimum, say a $100. Every month, take 2 people out to lunch/dinner and pay for them; budget $150 for each.
What kind of people should you take out to lunch/dinner?
Those who are more knowledgeable than you, richer than you, or have helped you along in your career; those who work harder and have bigger dreams than you. Make sure to do this monthly because it will pay dividends in the future.
After a year, your circle of influence would have grown tremendously. Your reputation, influence, and added value will spread and be clearly recognized. You’ll also enhance your image of being good and generous.
3. Third set of funds ($300): This set of funds is for learning. You should spend about $50 to $100 in a month to buy books. Because you don’t have a lot of money, you should pay attention to learning and learn as much as you can.
Now when you buy a book, read them carefully and completely consume the lessons and strategies that the book offers. After reading them, make sure you try to teach someone else the lessons in your own words.
Sharing with others improves your credibility and enhances the affinity. Also, studies have shown that it helps you learn the lessons better.
In addition, try to save up per month to attend a training course. Many successful people do this. For example, Warren Buffet once attended Dale Carnegie’s Public Speaking Course. When you participate in good training, not only do you learn good knowledge, you also get to meet like-minded friends who are not easy to come by.
4. Fourth set of funds ($200): Use it for holidays overseas. Go on vacay. Reward yourself by traveling at least once a year. Traveling will expose you to the world and increase your experience of life and continuous growth.
Stay in youth hostels to save cost. In a few years you would have travelled to many countries, met different people, and have different experiences. You’ll recharge yourself and have passion in your work continually – sharpening the saw, so to speak.
5. Fifth set of funds ($500): This is for investing. Save the $500 in your bank and grow it as your initial startup capital for a small business. Why a small business, you ask?
Because small businesses are relatively safe. Even if you lose money, you will not lose too much money. Go to wholesalers and look for products to sell.
However, when you start earning money, it will boost your confidence and courage and you’ll have a whole new learning experience of running a small business.
Earn more and you can then begin to buy long-term investment plans and get long-term security on your financial wealth. No matter what happens, there will be adequate funds and the quality of life will not decline. It will be your war chest for bad times and will ensure stability.
Learn how to sell
If after grinding for a year and you still earn $2,000 by the second year, then it means you have not grown as a person. You should be really ashamed of yourself. Do yourself a favour and go to the supermarket and buy the hardest tofu. Take it and smash it on your head because you deserve that. – Li Ka-Shing
Even if your monthly income increases to say $3,000 you must still continue to work very hard. You should try to find a part time job – preferably in sales. Sales is challenging, but it is the fastest way for you to acquire the art of selling; a crucial skill you’ll have for the rest of your life.
All successful entrepreneurs are good sales people. They have the ability to sell their dreams and visions. You will connect with many people who will be extremely valuable to you in the later part of your career.
You will also develop the sense of what sells and doesn’t, what might be a success and what won’t be. Use the sensitivity of detecting market sentiments as a platform for running your business and in the identification of product winners in the future.
Moreover, businessmen everywhere need help. Offer yourself to do part time for any kind of opportunities. This will help to hone and improve your skills. You will start to develop eloquence and soon, you’ll be closer to your financial goals. By the second year, your income should be increased to at least $5,000.
What will begin to happen to you
This is a virtuous circle of life plans. Maintain this balance and gradually you will begin to have a lot of surplus – a bigger war chest.
- Your body will begin to begin to get stronger as you have better nutrition and care.
- Friends will be aplenty and you will start to make more valuable connections at the same time.
- You will then have the conditions to participate in very high-end training and eventually you’ll be exposed to bigger projects, bigger opportunities.
- Soon, you will be able to gradually realize your various dreams, the need to buy your own house, car, and you prepare an adequate education fund for your child’s future.
Advice on “The Art of Living”
Life can be designed. Career can be planned. Happiness can be prepared. You should start planning now.
When you are poor, spend less time at home and more time outside. When you are rich, stay at home more and less outside. This is the art of living. When you are poor, spend money on others. When you’re rich, spend money on yourself. Many people are doing the opposite.
When you are poor, be good to others. Don’t be calculative. When you are rich, you must learn to let others be good to you. You have to learn to be good to yourself better.
When you are poor, you have to throw yourself out in the open and let people make good use of you. When you are rich, you have to conserve yourself well and don’t let people easily take advantage of you. These are the intricate ways of life that many people don’t understand.
When you are poor, spend money so that people can see it. When you are rich, do not show off. Just silently spend the money on yourself. When you are poor, you must be generous. When you are rich, you must not be seen as a spendthrift. Your life would have come full circle and reach its basics. There will be tranquility at this stage.
There is nothing wrong with being young. You do not need to be afraid of being poor, but you need to know how to invest in yourself and increase your wisdom and stature.
You need to know what is important in life and what is worth investing in.
You also need to know what you should avoid and not spend your money on. This is the essence of discipline.
Try to avoid spending money on clothing, but buy a selective number of items that have class. Try to eat less outside.
When buying people dinner, make sure you buy dinners for people who have bigger dreams than you, and work harder than you.
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!
A famous theory from Harvard says:
The difference of a person’s fate is decided from what a person spends in his free time between 20:00 (8 p.m) to 22:00 (10 p.m).
Use these two hours to learn, think and participate in meaningful lectures or discussion. If you persist for several years, success will come knocking on your doors.
Don’t dwell on past mistakes
Whatever happened in the past is over. Do not dwell on past mistakes. There’s no point crying over spilt milk. Everybody makes mistakes. It’s what you learn from the mistakes, and promising yourself not to repeat those mistakes that matters. When you miss opportunities, don’t dwell on it, as there are always new opportunities on the horizon.
Being able to smile when being slightly misunderstood is good upbringing. When you’re wronged and you smile with calmness, it is generosity.
When you’re being taken advantage of and you can smile, you’re being open-minded. When you are helpless and you can do a philosophical smile, you’re in a calm state.
When you’re in distress and you can laugh out loud, you’re being generous. When you’re looked down and you can calmly smile, you’re being confident. When you’re being jilted in relationships and you can smile it off, you’re being suave.
There, you have it. Will you take the bull by the horns to improve your life today? Let us know in the comments below.