The Case for Dying With Zero

Key Takeaways

• Utility: Money has diminishing returns as you age. A ski trip at 30 is different than at 80.
• Net Worth: The goal is not to maximize the number at death, but the experiences during life.
• Memory Dividends: Experiences pay you back in memories for decades.
• Giving: Give to your kids when they are 30 (when they need it), not when they are 60 (when you die).

Introduction

The traditional goal of personal finance is "Maximize Net Worth." Bill Perkins argues this is wrong. If you die with $5 million in the bank, that is $5 million of life energy you worked for but never enjoyed. You essentially worked for free for years.

Deep Dive: Maximizing Experiences, Not Numbers

The Utility Curve

Money is worthless without the health to enjoy it.

• Age 20-40: High Health, Low Money.
• Age 40-60: Medium Health, High Money.
• Age 80+: Low Health, High Money.

Traditional advice tells you to save everything for the 80+ bucket. "Die With Zero" says you should spend aggressively on experiences in the 20-40 and 40-60 buckets to maximize your life's fulfillment.

Memory Dividends

When you take a trip with friends at age 25, you enjoy the trip. But you also enjoy the memory of that trip for the next 50 years. This is a "Memory Dividend." Delaying gratification too long robs you of these dividends.

The Inheritance Fallacy

Waiting to leave money to your kids when you die (often when they are 50 or 60) is inefficient.

• Peak Utility: Your kids need money most when they are 25-35 (buying a house, starting a family).
• Action: Give with a warm hand, not a cold one.

Summary

Save for safety, but don't be the richest person in the graveyard. Calculate your "Enough" number and start living.