Die with Zero summary

We’re all familiar with the concept of financial investments. You put your cash into stocks, shares, or, perhaps, property, and you hope that eventually, you’ll get it back – with a profit. But what if you could invest more than money? What if you could invest your experiences, too? 

Imagine you blow ten thousand dollars on a trip to Europe. During your travels, you make new friends, learn about other cultures, and expand your horizons. By the time you return, you feel like a whole new person. But how could this journey of discovery possibly be an investment? You won’t get those ten thousand dollars back, will you? And it’s not a training course that will help you earn more in the future!

What if your boss asked you to work for free? Hopefully, you’d say no. But millions of Americans are doing just that. For years, they toil with zero financial gain.

Meet Elizabeth, for example. She’s a 45-year-old woman without children, and her annual net income is $49,000. But Elizabeth only spends $33,000 of what she earns. She puts the remaining $16,000 into her pension and savings account. By the time she retires, at age 65, she will have a total net worth of $770,000. This sum will include all those savings as well as her home equity. 

Dying with zero might sound good in theory, but what if you have kids? Most parents want to ensure they leave enough of an inheritance for their children. Isn’t spending all the money on your own entertainment selfish? 

In short, no. To understand why, ask yourself this question: how much of your wealth do you see as yours, and how much do you view as your children’s? 

You only live once, and you also only die once, right? Well, yes and no. While it’s true we will only physically die once, it could be said that we experience multiple deaths throughout our lifetimes. 

You may be wondering what this could possibly mean. Well, the author offers this example. 

So far, we’ve explored the benefits of dying with zero. But for many people, the fear of living with zero far outweighs these benefits. This is a valid concern. After all, what happens if you run out of money in your later years, when you’re no longer able to work? Just how much money is enough to retire?

To answer this question, you’ll need to take a look at your net worth. You can calculate it by adding up all of your assets and then subtracting your debt. The number you’re left with is your net worth. 

Maybe you’ve heard the expression “the bigger the risk, the greater the reward.” Well, it’s not entirely true. In reality, taking a risk is a bit like backpacking around the world: you’ll get more out of it when you’re younger. 

Why is it better to be bold earlier in life? Let’s take a look at a high-risk scenario.