Hello and welcome again. Please give me a few seconds to adjust the camera. Good. Let us start. Hello and welcome to lecture four have become a minimalist. Discover the fantastic power of frugality.

I am Adrian Rasheed was hope you found our dear friend. lecture for gadgets and celebrities. Now, let us first see where your money is draining. We'll take an example of smartphones. High hidden costs of smartphone usage those smartphones have many advantages. Have you ever wondered what it is really costing a modern family of four for its usage?

No idea that let us run through some numbers assuming zero inflation and costs of handset and usage charges. Based on prices in India, you can calculate the equalent prices for your country. Cost of a good mid range smartphone is rupees 10 K to 15 k total cost for a family equals 40 K to 60 k average postpaid monthly bill starts from about 299 rupees to 499 rupees into four for the four persons. The yearly usage cost We'll we'll come to 14,003 50 to two rupees 23,952 Now add some Itsy Bitsy cards for screen guards back cover the extra screen damage apps etc. Next, we'll take the handset life as two to three years assuming your family is able to resist the temptation for the new dazzling new smartphone on sale now. But if you can't resist, then add the cost for for new handset within two to three years.

Cost of phones in the third and fourth year is again rupees 40 K to 60 k because we have assumed zero inflation. By the elbow calculations, your family will end up spending whopping amounts of money for your smartphone usage for years and years. Such costs can be compared to buying a comprehensive medical or car insurance or a new fridge or a washing machine or a TV every two years. Next, we'll learn from some reckless celebrities. Most people think famous celebrities don't have to worry about things like minimalism or frugality. But this is far from true.

And minimalism is required even for such stars. Only extremely few celebrities can maintain their luxurious lifestyle for years and decades. For example, look at the rise and fall of some famous celebrities whose names you may have know forgotten. Michael Jackson, the King of Pop was supposedly $400 million in debt with He died unexpectedly in 2009. He was also close to foreclosure on his famous Neverland home. Reckless spending required him to take out loans, many of which he never paid back.

Jackson money problems got worse once he got involved in numerous expensive lawsuits. Nicolas Cage was one of Hollywood's biggest stars, earning $40 million at peak, but also one of its biggest spenders. He purchased many homes, automobiles and rare artifacts, the IRS finding more than $6 million for failing to pay in 2007 tax bill gates precarious financial situation made him sell many of his personal belongings, including a treasured comic book and take many film roles. Mike Tyson Heavyweight Champion mike tyson on $300 million war is carried But ended with their $23 million debt. He declared bankruptcy he returned to jail and went through rehab before he again reached financial stability. By 2003.

He owed money to the IRS British tax authorities lawyers, a personal trainer, a financial manager, a music producer, and several others. Mr. hungar, an actor from India, with 200 plus films under his belt, humble was a well known face of Indian cinema. However, even his fame couldn't keep the hard time said be late in his life. Hunger went bankrupt and couldn't even pay his medical bills. And we also have countless examples of sports person film stars, politicians and businessmen who have no style. Now, I will tell you the reason why celebrities fail.

Let us take an example of some unknown person maybe a teenager at 18 years, who is living in an ordinary family, a middle class person living within $50,000 suppose that person becomes a pop star and becomes famous. And the windfall of money starts by the age of 20. Let us assume that he starts earning $5 million because of some music or song that he became famous for. Then you know what will happen? He will begin his luxurious lifestyle, fancy cars, mansions, advertisements sponsorship, name and fame because he's earning $5 million. Now, within a couple of years, his annual income will drop to $4 million and a small dip in popularity starts by there Time He is 24 his annual income will be $1 million.

And with the rapid reduction in fan base, fame and new opportunities by the time he is 26 years old, he'll be out of the limelight forgotten by the media and public, sporadic income, high debts, unable to maintain lifestyle, depression, and maybe drugs, etc. Finally, this is the result of not saving when Ernie now I'll give you a bunch of minimalism tips that you can practice in your life. Stop being a spendthrift a spendthrift is a person who spends money recklessly and extravagant in his or her nature. Spent is also fall for personal loans and payment to credit cards. The idea of buying today and paying tomorrow is something few people can resist. But they don't say it is.

They will pile up debts that will never clear and solely set people will get into a nasty debt trap. Now ask yourself if you or your family members are spent. If yes, then you need to slowly change your and their spending habits and start saving money for your future needs today or maybe strong confident earning enough money, but is there any guarantee that you will still be earning enough money for the next 20 to 30 years? low, high and medium. When buying goods first evaluate the low, medium and high types. For example, you can get an ordinary mobile phone for 3000 rupees, a slightly better phone for 6000 rupees and a super duper phone for 50,000 rupees.

Minimalism is about choosing a living with the ordinary or a slightly better form. This way you will experience the joys of having a mobile phone. But avoid the atrocious cost of a super duper phone. invest in real estate and stocks in good companies invest in long term fixed deposits tax free schemes, money back policies, insurance schemes and money monthly income schemes. have hobbies that can earn some money. Have a second income if possible, and save that income from that for a rainy day.

Buy books on cost saving to learn how many new ways to save or reduce costs and taxes. Eat your kid family and kids the importance of frugality, saving and earning money forcefully stop that burning desire to give your family those unnecessary luxuries that your parents are unable or unwilling to provide. Remember, it is not mandatory to fulfill all the luxury desserts if you are the family breadwinner. Ask them how would they will manage things if you were to suddenly disappear tomorrow. also inspect your current lifestyle and the cost for each. Look around at what to drive where each smoke, drink and greed are all of these necessary, see whether you can cut or eliminate some of them drastically reduce credit card purchases and impulsive spending recklessly cut down unnecessary things like entertainment, frequent eating out and mandatory, expensive vacations.

When buying things you don't really need, it is better to think that you won't afford it rather than you can afford it. eliminate all unnecessary expenses like subscription to unwanted magazines, electronic gadgets, monthly payments, and so on. don't invest all your money in high risk investments even if they promise high returns you Invest only limited amounts you can afford to lose to avoid a disaster on speculative risks. buy things that appreciate in value don't buy things that depreciate over time. Another bad thing is paying interest on or EMI is equated monthly installments on a depreciating asset such as an automobile or a mobile phone. Not only are you losing money by paying interest, but the same item you're paying is also losing value at the same time.

Don't increase your standard of living during temporary phases of financial vibrancy. Lead a simple life even if you are earning well. Don't build a grand lifestyle and uplift your social and materialistic status by having an assumption that you will always make more and more money. You will never know when your lifeboat will start sinking. Always live within your sources of income. Have a budget For everything when you live within a budget you can be live better and without fear.

Budgeting helps you understand where your money is coming from and where your money should go. Even if you create a nice manageable budget, keep looking for ways to cut unnecessary expenses. cultivate a lifestyle that you can afford to live with for the rest of your life. This is a sentence that I asked you to read a couple of times, cultivate a lifestyle that you can afford to live for the rest of your life. Stop living for others. A lot of people don't like minimalism because it doesn't seem practical in the surroundings they live in.

But what they actually mean is they don't want to look weird in front of their friends and relatives. For example, not buying a fancy car when all of your friends and relatives have one may make you look like your mother or your kids may face some ridicule. But ask Who are you living for? Is it mandatory to meet everyone's expectations to avoid ridicule? Will they come to your rescue when you are done? The answer is no.

Hence you should stop the neighbors have it so we should also have it thinking. Don't care about what others think about you not wanting luxuries even if you can afford them. Consider whether you're buying something for a real need or just to impress someone. What really matters is you are willing and happy to spend only on essentials but not unfilled. When it comes to spending remember what Will Rogers one said, too many people spend money they haven't earned to buy things. They don't want to impress people they don't like.

Big hosts marloes for example, if you're staying in a big rented house, see if you can shift to a small compared to hundreds of stuff in your house to just enough stuff. See what stuff you can throw ourselves that can make your house lighter and more really big expensive car to small medium car, less maintenance and insurance costs. Buying vegetables to growing them in your if you have space in your garden you can enjoy the happiness of growing vegetables. Expensive gym to home exercise. Why invest money in an expensive gym when you can downsize your way through simple home accesses. buy new goods to buying new used goods.

Why waste money on new goods when secondhand stuff is available for half the price. High Speed expensive internet connection to low speed basic connection asked do you really need a blazing internet connection or can you live with a basic or medium connection vacation every year they So our occasional location, ask is it mandatory to go on exotic or expensive vacations every year? Can't we spend the holidays peacefully at home or travel to nearby low cost destinations. Dozens of clothes and shoes with just enough clothes and shoes. To travel by personal car to public transportation or cycling or carpooling. Aim for a substantial reduction in electricity, water and fuel consumption switch of computers and gadgets when not in use.

Multiple magazines and newspapers to one newspaper and magazine junk food to healthy food stop eating junk foods that spoil your health and increase medical expense. Try healthy foods. Healthy improvement to natural and herbal medicine instead of expensive medicines from top companies. Most simple to medium ailments has low cost herbal medicines that can be equal to or better than the fancy medicines. Now I'll explain something called the bucket principle. In order to take out water from a bucket, there has to be a tap that is dripping water into you.

So you should also have the same principle in your life. In order to take out money from your wallet, there has to be a source of income that will be filling your wallet with money every month. So you need to use this bucket principle in every every stage of your life. Now, let us come to an important concept. One who pays makes the rules learn to say affirm no without any guilt or regret for all non essentials. Do you know that no is a complete sentence, it does not require an explanation to follow.

You can do Answer someone's request with a simple No. as said by Sharon Rainey, sometimes no is the kindest word. Do not assume that you have to somehow slog and fulfill all your family's demands. Always remember that the breadwinners primary responsibility is mainly to provide essential food, clothing and shelter. All luxuries and non essentials are optional. Always remember the businessman story where his wife refused to downgrade our life even though her husband was indeed in debt and stress.

Secondly, the husband was also at fault for giving his family a wealth and luxury beyond what he could manage or afford for years and years. Over time, you will realize that saving money and don't shifting is also as joyful as Earning and spending money. Also curb your family's bad habit of demanding money from you whenever they see you or whenever you go out. All the tips and suggestions that are displayed are nothing new and have been practiced by our wise forefathers from decades. This is why they were able to survive and sustain in spite of earning a meager salary compared to today's mega salaries. Finally, it is easier to leave the bat with a bad reputation of being called a minimalist, then become bankrupt just to spend your family's endless demands and here they are squeals of joy.

Now, let us come to some downside of minimalism. The downside is you may have some difficulties adjusting to minimalism for some time. You may face ridicule and rebellion from family, friends, neighbors and relatives. You may actually At some decisions because you may miss out on some enjoyment. You may find it difficult to get consent from your family and kids as they may be accustomed to a richer lifestyle. But look at the bright side, nothing great in life is achieved without sacrifice.

You have to sacrifice something in order to get something better from life. All you have to do is be firm and say Challenge accepted. Remember the one who pays makes the rules. Now let us read some quotes on frugality. He who knows how to be poor, no 70 jewel smasher. Never go to access but let moderation be your guide says here.

By sowing frugality, we live reap liberty, a golden harvest it isalus rich people stay rich by living like they're broke, broke. people stay broke by living like their rich Know You must gain control over your money or the lack of it will forever control you. I would like to live as a poor man with lots of money. If we command our wealth, we shall be rich and free. If our wealth command says we shall be poor indeed. It is thrifty to prepare for today for the ones of tomorrow, as of now we come to the end of lecture four.

I hope you enjoyed this course and we'll start implementing my suggestions in your life. Thank you and good luck.