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)        …