Most of us as human beings do not give importance to the economic life of our existence. We live without consciously knowing whether we are enriching our economic life in this world. The great business tycoon from China Mr. Li Ka Sing has propounded the theory of economic life circle.

Theory  of Mr. Li Ka Sing

1.Living expenses : 30 % of Gross Income

2.Networking expenses : 20 %           -do-

3.Travel Expenses : 10 %           -do-

4. Learning & Development : 15 % -do-

5. Investment : 25 % -do-

TOTAL : 100 % of Gross income

Presentation in pie- Chart

In this economic life circle 30% should be the maximum limit for living expenses including food, medicine etc., 20% should be spent on networking which includes relationship building, maintaining connectivity etc., 10% to be spent on travel to provide opportunities for exploring greener pasture for growth, 15% of the gross income to be spent on learning and development and the balance 25% is the benchmark for investment.

Utilization of Income Resource

Each quadrant describes the need of utilization of income resource in an effective manner for the man to have a growth oriented enriched fulfilling life. Out of the 25% of Investment money at least 30% to 35% of it should have been for regular return oriented scheme for providing cash flow to the family for maintenance. 10% of the Investment money and living expenses combined should be for adequate coverage of insurance of life to meet the uncertain eventualities of life like death, accidental injuries and health related problems etc. which also includes the portion of investment of mediclaim and health insurance. Now the balance left out from the investment money should be invested for growth depending on the risk – reward/ return appetite of the person for which he may take help of Mutual Fund, Intra day play in the capital market, Fixed return FDs, Bonds, Corporate Financial Papers etc.

Concept of “Holy Trinity”

As per Dr. Govindarajan, there is also a concept of “Holy Trinity” in Financial world like our mythological belief of Brahma, Vishnu & Maheshwar and so also like that of Christianity “Father, Son and Holy Spirit”. In the Financial World concept First Lord Vishnu is to be invoked i.e. maintenance is to be given high priority like regular return schemes giving emphasis on cash flow to the house for maintenance and carrying out the regular day to day activities like fooding, clothing, education etc. Then comes Lord Shiva/ Maheshwar here to destroy some of the old concepts/ideas/ materials etc. in order to create space for innovation where after Lord Brahma as the creator is invoked. Thus there is generated space and opportunities for new philosophies and ideas for innovation which may be sometimes disruptive i.e. leapfrogging over the incremental growth thereby creating a different scenario of exponential growth revolutionizing the whole process and result.


So, a common man as an average earner can dream of becoming a millionaire if he follows the above philosophies as propounded by Mr. Li Ka Sing because his canvas of thought spreads in a big way by utilizing the available resources in an optimal manner. He becomes a dreamer and also starts believing in his capabilities so that the capital as resource available with him can be converted to income easily. This concept of conversion of capital to income has been thought of by the great French Economist Mr. Franco Picketty recently. This conversion is with minimum effort when the person commands the process of conversion of Capital to Income. This is possible when the total skill/ labour of conversion of capital to income is commanded by him totally.

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