Should You Die Broke?

We like to avoid thinking about our own death. The thoughts are uncomfortable, spark negative emotions, and feel almost too far away or unreal to picture when we are young or even middle-aged. Regardless of your personal beliefs about what happens to you upon passing away, the one universal truth is that we cannot take our money or possessions along with us. I recently read a provocative and thought-provoking book, Die With Zero by Bill Perkins, which argues for spending all of your resources during your lifetime.¹

I went into the book as a skeptic. I’m a strong believer in saving money and having your money work for you, so I had a feeling that I would be rolling my eyes consistently throughout the book. To my surprise, the concepts in the book ended up making a lot of sense. If the topic interests you, I encourage you to go buy the book and read it.

The Tension Between Money, Time, and Health

In a perfect world, all three of these valuable resources would coincide beautifully together. But as Perkins points out, this fantasy doesn’t match reality. Our health peaks in our 20s, while our free time and money typically peak in our 60s or 70s. Ideally, we would go scuba diving in the Great Barrier Reef or hike Mount Blanc in our 20s while we are young, healthy, and full of energy.

Yet the unfortunate reality is that we are too busy studying at University, starting our careers, or raising young children during young adulthood. In other words, free time is low. To make these experiences even less feasible, we typically don’t have the money to afford the plane tickets and scuba lessons. Perkins argues convincingly that going out of your way, financially and time-wise, to prioritize physically demanding life experiences in early to mid-adulthood is crucial because your body simply won’t be able to support them in your retirement years. It’s now or never.

Avoid Working “For Free”

Assuming the money that you die with was earned through labor, dying with a surplus of cash means you may have “worked for free.” In other words, you exchanged your time for money, even though you never got the chance to enjoy this money. This point is particularly important if you work a job that pays hourly, which you do not particularly enjoy, with the implication being you traded happiness for more money, but you did not get to use the money.

What About Leaving My Kin an Inheritance?

The idea of leaving a generous will for the next generation is a noble and worthwhile act, no doubt. But is waiting until you pass on to the next dimension the optimal way to transfer wealth? Almost certainly, the answer is no. The most common age to receive an inheritance is around 60, which often coincides with the age when your net worth is high or at its peak. In other words, the inheritance is unlikely to change your existing circumstances.

The key age when we could use the windfall of cash is much earlier, about 25–35 years old. At this age, you are desperately trying to pay off student loans, afford a house downpayment, raise young children, or take amazing experiences while your health is optimal. Perkins argues that gifting your children an “early inheritance,” even if it is modest, is a better way to maximize resources. And as a bonus, you get to see the impact of your gift while you are still alive. The same general concept applies if you are planning to leave money to charity.

Walking the Financial Tightrope

Millennials and Gen Z are enamored with the concept of FIRE (Financial Independence, Retire Early), working endless hours and saving every dime to retire at a younger age. However, the FIRE mindset can lead to missed experiences and decreased happiness during your critical younger years.

With that being said, I do believe there is a counterargument to be made to the concept of dying with zero. If you spend your youth constantly chasing experiences and fun, then you won’t be able to build skills or establish a career to build a strong financial foundation. Balance is key, and I still believe financial responsibility is highly important.

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The concept of die with zero changed my perspective, and I hope it changed yours, too. As a chronic saver, I occasionally find myself missing out on experiences due to the guilt or hardwired concept that it’s “too expensive,” even as my income has increased. But if you’re someone who is financially secure and has trouble spending money to the detriment of your own happiness, try embracing the mindset of die with zero to increase your well-being.