Introduction
“Die With Zero” is a provocative take on personal finance, challenging the conventional wisdom of endless saving and delayed gratification. In a culture often obsessed with wealth accumulation, this book stands out by urging readers to prioritize life experiences and to spend their money purposefully while they are still healthy enough to enjoy it. The book’s core premise of maximizing life enjoyment rather than net worth is particularly relevant in today’s world, where many people feel trapped in a cycle of working to save, rather than saving to live.
Ratings
Goodreads 3.9/5.0 (24,000 ratings)
Amazon 4.3/5.0 (6,000 ratings)
Top three themes
Life is the Sum of Your Experiences, Not Your Net Worth: Perkins emphasizes that life should be about accumulating rich experiences, not just money. He argues that when we look back on our lives, it’s the quality and variety of our experiences that will determine our sense of fulfillment. This perspective contrasts sharply with our culture’s tendency to overemphasize hard work and delayed gratification. The book challenges the idea that the main goal is to amass a large sum of money for retirement. Instead, it suggests that we should focus on converting our money into experiences that bring us joy and meaning. Perkins introduces the idea of “experience points” to quantify the value of experiences. This approach encourages us to deliberately plan our lives to maximize fulfillment, rather than living on autopilot.
Aim to Die With Zero, Not With a Mountain of Untouched Savings: The book’s core concept is the idea of dying with zero, not as a literal goal, but as a mindset shift to help you live your life to the fullest. Perkins argues that over-saving can lead to a waste of “life energy”. He explains that money represents the hours of life we spend earning it, so saving excessively means sacrificing valuable time that could have been spent on enjoyable experiences. The book suggests using tools like life expectancy calculators to estimate how long you will live, and then plan to spend accordingly. It’s about balancing enjoying life experiences while you’re young and healthy with ensuring you have enough for your later years. Perkins acknowledges that some people are afraid of running out of money, but stresses the importance of planning how to spend down your savings, not just accumulate more.
Time Bucketing and Knowing Your Peak: To help put these concepts into practice, Perkins introduces the idea of “time buckets,” dividing your life into intervals to plan for different experiences. This strategy is intended to help you be deliberate in choosing what experiences you want at different times of your life. The book also talks about finding your “net worth peak,” the time when your net worth will be at its highest, and then spending down your money from there to maximize enjoyment. This method of thinking about your finances involves a shift from a traditional mindset of accumulating wealth to focusing on the optimal use of your life energy at various stages of life.
Key quotes
- “So your life is the sum of your experiences”
- “Maximize your positive life experiences”
- “Aim to die with zero”
- “Squandering our lives should be a much greater worry”
- “There is a time for work and a time for play”
- “Start early, start early, start early”
- “We are solving for your total life enjoyment”
- “Don’t live your life on autopilot”
- “You can’t leave the timing of the peak to chance”
- “Your real legacy isn’t money”
Key points
Rule No. 1: Maximize Your Positive Life Experiences: The book opens by emphasizing that life should be about thriving, not just surviving. Perkins encourages readers to reflect on the best way to spend their life energy before they die.
Rule No. 3: Aim to Die with Zero: Perkins introduces the idea of using all of one’s money before death to maximize enjoyment. This provocative rule is a central theme and challenges the conventional thinking of saving as much as possible. He uses the “life-cycle hypothesis” as a foundation for this idea.
Rule No. 6: Don’t Live Your Life on Autopilot: Perkins argues against passively going through life, emphasizing the importance of making deliberate choices. He uses the “latte factor” as an example of how small, thoughtless expenses can add up, and encourages readers to examine their spending habits and make intentional choices with their life energy.
Time Bucketing: Perkins introduces the concept of dividing life into intervals to plan specific experiences for different periods. This method helps to envision a life with a better mix of experiences at different times.
The Net Worth Peak: The book introduces the concept of a point in life when net worth is at its highest. The author emphasizes that this point is tied to biological age, not a specific dollar amount, and encourages readers to begin spending their savings at this point to avoid wasted life energy.
Giving to Children: Perkins argues that if you intend to leave money to your children, do it while you’re still alive and able to see the impact. He argues that giving to your children early ensures the funds are available when they can be most effective.
The Role of Experiences: Throughout the book, Perkins stresses that experiences are more valuable than material possessions and are the true measure of a fulfilling life. He uses the analogy of “experience points” to emphasize the value of each experience.
Author’s perspective
Bill Perkins is not a certified financial planner. He is a successful energy trader who made his fortune on Wall Street. His background as a trader informs his approach to life and money as things that are meant to be used to their full potential. Perkins’ personal experiences with friends and colleagues who wasted their life energy on accumulating wealth motivated him to write this book. He also describes the process of creating an app to optimize these ideas. Perkins’ approach is shaped by his desire to live life to the fullest, and his book reflects his belief that most people underutilize their resources and the time they have available.
Strengths
Originality: The book offers a fresh perspective on personal finance, contrasting with traditional approaches that often prioritize saving above all else. Its central message, to “die with zero,” is a unique and thought-provoking concept that challenges conventional wisdom.
Accessibility: The writing style is conversational, engaging, and easy to understand, making complex financial concepts accessible to a broad audience. Perkins uses relatable stories and analogies to make his points clear.
Practical Advice: The book is filled with actionable advice and concrete strategies. The “time bucketing” exercise and the concept of identifying a “peak” net worth, provide practical tools for readers to start planning and living more deliberately.
Focus on Life Fulfillment: “Die With Zero” focuses on overall life satisfaction rather than just financial gains. The book emphasizes that the goal is to maximize enjoyment and experiences, not just wealth.
Use of Research: The book incorporates relevant research from economics and psychology to support its claims. This blend of personal anecdotes and academic backing adds credibility to the author’s arguments.
Weaknesses
- Idealistic: The concept of dying with zero may seem unrealistic and difficult to achieve for many people. The book acknowledges that it’s an impossible goal to hit exactly, but some readers may find the idea too far-fetched or impractical. The author notes that this book may not be as helpful to those who are struggling to make ends meet.
- Potential for Oversimplification: While the book does a good job of explaining complex concepts simply, it sometimes runs the risk of oversimplifying. The author’s personal approach might be seen as a one-size-fits-all solution to a complex and nuanced problem.
- Reliance on an App: The book references an app that is designed to help optimize the “die with zero” approach, which may be seen as a way to promote the app. The book argues that the app is not necessary for getting more out of life, however, some readers may see it as a central element to the book’s plan.
Target audience
- Over-savers: Those who are so focused on saving for the future that they are sacrificing present enjoyment. The book encourages them to re-evaluate their financial priorities and make a plan to spend.
- Young Professionals: Those who are in their early career and are just starting to plan their financial futures. The book encourages them to start investing in experiences early, before they decline in health and vitality.
- Mid-Career Individuals: Those who feel like they’re working on autopilot and want to live more intentionally. The book provides them with tools to help examine their life and financial choices.
- Anyone Planning for Retirement: Readers who want to re-evaluate how and when they start using their savings.
- Readers of Personal Finance and Self-Help: Anyone interested in new ideas for using their resources to get the most out of life, and to avoid potential regrets.
Similar works
Your Money or Your Life by Vicki Robin and Joe Dominguez: This book also challenges the conventional wisdom of saving and emphasizes living a simple life, but it takes a different approach by focusing more on frugality and financial independence. “Die With Zero” builds upon some ideas in this work but places more emphasis on spending for experiences.
The Top Five Regrets of the Dying by Bronnie Ware: While not a personal finance book, this book explores common regrets people have at the end of their lives. Many of these regrets, such as not living a life true to themselves or not having pursued their dreams, relate directly to the core themes in “Die With Zero”.
Start Late, Finish Rich by David Bach: This book popularized the concept of “the latte factor” and shows how small savings can add up over time. While “Die With Zero” references this concept, it encourages readers to use that money on experiences instead of just saving for the future.
Books on behavioral economics: The concepts in “Die With Zero” also align with key ideas from behavioral economics which addresses some of the reasons why people act irrationally when managing their resources.
Differentiation
The uniqueness of “Die With Zero” lies in its bold proposition to spend all of one’s money before death, rather than amassing wealth as a primary goal. This focus on spending as a key element of a successful life distinguishes it from more traditional financial advice. The book places an emphasis on experiences and quality of life, instead of financial metrics of success. “Die With Zero” stands out for its blend of thought-provoking ideas, practical guidance, and accessible writing style.
Conclusion
“Die With Zero” is a provocative and insightful book that offers a compelling alternative to conventional financial wisdom. It’s a call to action, urging readers to be more intentional about how they spend their life energy and to prioritize experiences over the mere accumulation of wealth. While the goal of dying with zero might seem impractical, the concept serves as a powerful framework for rethinking our relationship with money, and encourages readers to live more fully and deliberately. It’s a valuable read for anyone who wants to get more out of their money and their life.
Frequently asked questions
How can I be sure I won’t run out of money if I spend it all before I die?
The book acknowledges that dying with exactly zero is impossible. Instead, it advocates for using tools like life expectancy calculators and considering annuities to estimate how long you might live and plan your spending accordingly. The goal isn’t to literally hit zero, but rather to avoid underspending and wasting life energy on accumulating money you’ll never use. It is important to consider your personal risk tolerance for outliving your resources, and how much of a cushion you will need.
What about my kids? Shouldn’t I leave them an inheritance?
The author argues that giving to your children while you are alive is more impactful than leaving a bequest after you die. This approach allows you to see the positive effects of your generosity and also ensures your children receive the money when they can benefit from it most. The book emphasizes that your true legacy consists of the experiences and lessons you share with them, not just financial assets. You can also set up trusts for them, but the main point is that any money you intend for them should be set aside and not part of your “die with zero” plan.
How do I know when to prioritize spending over saving and vice versa?
The book introduces the concept of “time bucketing” to help you plan for experiences across your lifespan. It also advises you to think about your “net worth peak”, the time when your savings are at their highest, after which you should begin to spend more aggressively. The book suggests that you should factor in your health, as health issues often reduce your ability to enjoy experiences as you age. Additionally, the book points to a new app as a tool for determining your optimal balance between earning and spending, considering multiple variables.
About the author
Called the “Last Cowboy” of hedge funds by the Wall Street Journal, Bill Perkins is considered one of the most successful energy traders in history. He’s reported to have generated more than $1 billion for his previous firm during a five year period. After studying electrical engineering at the University of Iowa, Bill trained on Wall Street and later moved to Houston, TX where he made a fortune as an energy trader.
Now at age 51, Bill’s professional life includes work as a hedge fund manager with more than $120 million in assets, Hollywood film producer, high stakes tournament poker player, and the resident “Indiana Jones” for several charities. Bill manages this via smartphone on his yacht in the U.S. Virgin Islands, and while traveling the world with close friends and family.