5 personal finance lessons from international bestseller ‘Die with Zero’ by Bill Perkins

Most of us learn to save as much money as possible. Bill Perkins offers a different view in ‘Die with Zero’. The American hedge fund manager says money should help us enjoy meaningful experiences. A large bank balance at death can mean missed chances to live fully.

Treat money as a tool

A bigger bank balance should not become your only goal. Perkins says money should support a full and happy life. Think about the experiences you want, then spend time with that purpose.

He also questions working for too many years. Extra earnings may buy things you do not need. You cannot get those years of your life back.

Build memories early

Good experiences keep giving you happiness through memories. Bill Perkins calls these benefits “memory dividends”. A family holiday or concert can leave stories you share for years. Such memories can also bring you closer to loved ones.

An experience enjoyed earlier gives you more years to remember it. Perkins encourages readers to build memories while they can enjoy them. Think about a trip that still makes you smile today.

Match experiences to your age

Some activities are easier at certain stages of life. Trekking, for example, is easier at thirty than at eighty. Health and energy can decline as you grow older.

Perkins suggests listing things you want to do. Then, place them into suitable age groups, or “time buckets”.

This helps you avoid delaying experiences until they become difficult. Looking after your health also keeps more choices open for longer.

Give money when it helps most

Children may receive an inheritance only when they are already in their 60s. By then, the money may be less useful. Perkins suggests giving money while you are alive. He believes children benefit most between their mid-20s and mid-30s.

They could use this support for a home or business. You also get to see how your gift helps them. The same lesson applies to charity: give while you can see its impact.

Spend with a sensible plan

Dying with zero does not mean spending everything without thinking. Nobody knows how long they will live. Perkins asks readers to consider their savings and likely lifespan. An annuity, which provides regular income for life, can offer safety.

The idea is to balance present enjoyment with future needs. Save with a purpose, but avoid postponing every pleasure. Spend money, time and care on what matters while the chance remains.