Sometime back, I stumbled across a young blogger who discuss about “Advice on Spending Your Money in Your 20s-30s”. What captivates me in the article is about how Li Ka Shing advises the splitting of our salary into 5 sets of funds.
For more details, also refer to yahoo news “Li Ka-Shing teaches you how to buy a car & house in 5 years.”
The general idea is to split your income into 5 sets of funds.
Assuming a monthly income of $2,000;
1stset: 30% ($600) – Living expenses. Eat simple but healthy.
2ndset: 20% ($400) – Expand social circle and build relationships. Buy lunch for people who are more knowledgeable, richer and who have helped you in your career.
3rdset: 15% ($300) – Continuous learning. Buy books and attend courses.
4thset: 10% ($200) …