Embracing Life to the Fullest: Insights from "Die with Zero" by Bill Perkins (2024)

For some time now, I have been wondering whether I was saving too much and living too little. Fortunately, I recently landed on a book that was recommended on some podcast, and I found the answers I had been looking for. The book is called "Die with Zero" by Bill Perkins. Perkins' book has really challenged the way I look at money. Perkins flips the traditional script on financial advice, advocating for a life lived fully rather than a life spent hoarding wealth for a future that may never come.

Dying with zero is about making the most of your life by using your resources to create meaningful experiences rather than hoarding wealth. This approach encourages you to live fully, providing lasting memories and joy that are more fulfilling than simply having a large bank account. It promotes better timing in enjoying activities when they are most meaningful, like traveling when you're younger and more physically able, while saving other pursuits for later in life. Aiming to die with zero helps you find a balance between working, saving, and enjoying life now, avoiding the trap of endlessly deferring gratification. Investing in experiences pays off through "memory dividends," as the joy from recalling your adventures continuously enriches your life. Additionally, giving money while you're alive allows you to see the positive effects of your generosity and share in the happiness it brings, making the experience incredibly rewarding.

Here are some of the key insights from the book that might just change the way you think about money and life.

Aim for Net Zero. One of the central ideas in "Die with Zero" is to aim for "net zero" at the end of your life. The concept is simple yet profound: use your money to maximize your life experiences rather than letting it accumulate without purpose. Perkins argues that the ultimate goal of money should be to enjoy life, not just to stash it away. Dying with a large sum means you potentially missed out on opportunities to live more fully and create lasting memories. We have been conditioned to work hard and accumulate as much wealth as possible. Perkin argues that our primary goal in life is to maximize net fulfillment rather than net worth and leave as little wealth as possible when we die. At a certain point after achieving financial independence we should deliberately spend more than we earn so our wealth starts declining until death. The extra spending goes to fulfilling experiences and other worthwhile causes.

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Invest in Experiences. One of the best ways to improve fulfillment is to invest in experiences. Investing in experiences enhances overall happiness and fulfillment in ways that material possessions cannot. Experiences create lasting memories that provide enduring joy and satisfaction, unlike material goods that lose their novelty. They contribute to personal growth by exposing us to new perspectives and skills, and they strengthen our relationships through shared activities. Additionally, experiences often bring immediate happiness and excitement, with the anticipation and the memories continuing to enrich our lives long after the events have passed. Thus, investing in experiences leads to a richer, more meaningful life. Each person needs to do some soul searching and figure out which experiences would be more meaningful to them. Then you should proactively spend money on these things rather than buying another idle plot of land. We can allocate "experience points"to each activity and aim to maximise these points each year.

Memory Dividends. The idea of "memory dividends" is another fascinating concept from the book. Perkins suggests that investing in experiences pays off over time because memories appreciate in value. The joy and satisfaction from recalling your adventures can provide ongoing happiness, much like dividends from an investment. These memory dividends accumulate, enriching your life far beyond the initial experience. Memory dividends, like financial dividends, are of most value if you invest now rather than later. You would also benefit most if the memory dividends are diversified, unique, and involve your loved ones. Memory dividends, like interest, compound over time to create a fulfilling life.

Balance Work and Play. Perkins warns against working so hard that you miss out on living. Many of us fall into the trap of deferring happiness for a later time that might never come. Instead, he promotes a careful balance between earning and spending to achieve the highest life satisfaction. It’s about finding that sweet spot where you’re not sacrificing today's happiness for tomorrow’s uncertainties. Many of us delude ourselves that we shall start enjoying life when we retire, but the reality is that we will neither have the energy nor health to enjoy life at that age. It is better to go on that holiday now rather than later. Do not mindlessly defer certain gratifications when you can have them now.

Time Buckets. The concept of "time buckets" in the book is a practical tool for planning your life experiences to maximize enjoyment. Imagine your life as a series of containers, each representing different periods like your 20s, 30s, 40s, and so on. Allocate specific experiences and goals to each bucket based on when they can be most fully enjoyed. For example, put physically demanding activities like hiking or adventurous travel into your 20s and 30s buckets. As you move into your 40s and beyond, you might focus on less physically demanding but equally fulfilling activities, such as learning new skills or engaging in hobbies. This way, you ensure you don’t miss out on opportunities because you waited too long.

Giving While Living. Another significant point Perkins makes is about the timing of generosity. He suggests giving money to your loved ones while you're still alive, rather than leaving it as an inheritance. This way, you can witness the positive impact of your generosity and share in the joy it brings. It’s about seeing your wealth make a difference in real-time. Many people would be shocked at how their riches would be squandered quickly upon death. It is better to give out your wealth when you are still alive, so you have some control over the process. It is also much better to give money to children while you are still alive instead of waiting to die then they start fighting for your property.

In summary, "Die with Zero" by Bill Perkins is a call to live a rich, vibrant life, using your money to create meaningful experiences and lasting memories. It’s about making the most of your time, enjoying life now, and ensuring your wealth serves your happiness and fulfillment. After all, the goal isn’t just to die with a big bank account but to die with a heart full of rich experiences and happy memories. I would definitely recommend this book to everyone hustling to build wealth and achieve financial independence.