1-Sentence-Summary: Die With Zero teaches us that wealth accumulation isn’t the only aspect of our life that we should be chasing, but rather keep an eye on meaningful experiences, our relationships, and the limited time we have on earth.
Read in: 4 minutes
Favorite quote from the author:
There’s a fundamental issue with the rush for money, a better reputation, a bigger house, and all those traditional success metrics we’ve learned – we’re missing out on the most important part.
In the end, everyone wants to be happy. However, we postpone that happiness thinking that if we keep pushing hard and accumulating more, we’ll eventually get everything we want. Instead of seeing them as a means to an end, we keep looking for money, fame, and possessions, instead of focusing on living a meaningful and prosperous life.
Let’s explore three lessons from the book that will help us live better, happier lives:
- Invest in timeless memories, not in fading success.
- Spend your money while you’re still here to enjoy them while still taking care of your children.
- Interest accrued on invested money can help you secure your financial future faster.
Now let’s delve deeper into these lessons and explore ways to live more meaningfully while also saving for retirement.
Lesson 1: A good life comes with meaningful memories and remarkable experiences, not with more cash
Frankly, delayed gratification is overrated and comfortable retirement is an illusion. After all, will you be enjoying hiking in the mountains and boating around Rome in your 60s the same way you would in your 30s? I think not.
That’s the idea behind Die With Zero. Instead of spending your life-saving everything for your retirement, you should keep saving and live a life full of experiences, while still enjoying the comforts that come with a secure financial future.
The greatest investment you can make is in yourself and your life experiences. The main idea behind this book is to live a fulfilling life today, as well as in the future. You don’t have to compromise your retirement for a meaningful life today. Instead, make a plan and save some money for your experiences when you’re young too.
In this life, nothing is promised. We don’t know how long our journey will be, so make sure to take that trip to Europe, Backpack your way around your favorite state, go skydiving or do whatever it is you want to do. Don’t postpone your happiness and invest in memories when you’re young too.
Lesson 2: Die with zero while still taking care of your children’s inheritance
The author suggests that we shouldn’t be working for free. What does that mean? Well, let’s take a look at an average American working for $19 an hour. If you save $16,000 from your average salary of $49,000, that’ll make $770,000 saved for retirement.
Say you die before spending everything and you have $130,000 left in your bank. That’s almost two and a half years of free work! Now, the point isn’t to spend everything before you die, or leave your kids with no inheritance.
However, what if you were to give them money throughout your life? They could use it while they’re young adults and make a better life out of it, or invest them in experiences. The point is to be smart about your money choices while still securing your financial future.
Give your kids what you feel comfortable giving away and spend the rest. If you’re afraid of developing an expensive illness, studies show that it’s cheaper to pay insurance throughout your life than to save it in case it happens.
Not only is it more predictable from a financial point of view, but it also helps you save the rest for experiences and time with loved ones. Take some time to come up with the right amount for your kids, and then make sure to use the rest to enjoy life as it is while still saving for your retirement.
Lesson 3: Securing your financial future and a steady retirement might be easier than you think
There is a way to make the most out of your money so that it lasts longer and secures your future. It all starts with learning to leverage what you’ve already set aside through the power of interest rates.
As you start investing and buying assets, your money grows through the power of compound interest, so what you’ve put aside for your retirement will grow into more than just the net savings you’ve computed.
To harness the power of interest, all you need to do is automate payments towards your broker of choice or invest in assets like a house or an apartment that will grow its value in time. Simply deduct your monthly expenses and save the rest for such investments.
As you set this money aside for your retirement, it will accrue interest. Now, you’ll need to compute how much of it you need to live comfortably a year and multiply it with a round value such as twenty years. That’s the amount you need for retirement, given no change in variables.
Since you’ve decided to go with a health insurance plan that’ll save you money in the long run in case something happens, you already know how much you need to live comfortably in your senior years. Now, the interest rate you’ll accumulate will not only strengthen this scenario but also help you have some extra cash in case.
If you can compute these numbers, either by yourself or with a financial planner, your financial life will become much easier. You’ll also get a final number of how much you have left to spend and you won’t feel guilty investing in experiences and living a meaningful life!
Die With Zero Review
The concept of delayed gratification is one that has been ingrained in our culture since childhood, and it’s become a mantra for financial success. But are we missing the mark?
Die With Zero explores the benefits of spending more and saving less. The book busts the myths that surround the concept of delayed gratification and comfortable retirement.
The author will show you how to get comfortable living on less than you make and how to invest your savings so that they can grow exponentially over time.
Who would I recommend the Die With Zero summary to?
The 40-year-old person who feels bad whenever they spend instead of saving money, the 30-year-old person who wants to secure their financial future, or the 55-year-old person who is approaching their senior years and wants to plan their financials more meticulously than before.
Last Updated on October 6, 2022