The Rachel Cruze Show - Should We Really Want to “Die With Zero”? (My Honest Opinion)

Starting point is 00:00:01 Well, hey, you guys. So since I am part of this world of personal finance, I always love hearing what other experts are teaching in this field. And a lot of us agree on really basic things, which is, I appreciate, right? I mean, there are things that, I mean, pretty much anyone in the space, it's like Carlin's not smart mathematically or financially. Like, a lot of people agree on that. Maybe investing strategies are different. Maybe even the way we talk about debt is different. But I always find it interesting people's nuances when they're teaching about money and their perspective on it. So whenever a book comes out around money, I usually try to read it. And my neighbors kept talking about this one book and I was like, I've got to read it. It's called Die with Zero by Bill

Starting point is 00:00:43 Perkins. And listen to all, it was a really interesting book. And I would say like 85% of it. I was like, all right, I could get there. So today I'm going to talk to you about some of my takeaways from that book. Maybe a few ideas that we kind of differ on. But again, I think it's always important to learn, to grow, to understand people's perspective because it could kind of shift some of yours in a good way. and I'd be curious what you guys think, so be sure to stick around to the end or drop your thoughts in the comments. Okay, like the title suggests the main concept is to die with zero, which makes me very nervous already. But listen, he argues the author that says, normally you would just leave an inheritance or money that you've been saving your whole life. And maybe you have it designated to your kids or maybe you have it designated to charity or whatever it may be.

Starting point is 00:01:30 But would it be more fulfilling in your life if you actually? actually did those things while you were alive. So there's a statistic that I heard recently that said you actually need the most money when you're around like 26 to 38 because that's when people are putting down payments for homes. People are replacing cars. They're paying off their college debt. Like that age time period is really expensive. So he would argue instead of leaving an inheritance to your kids, why don't you just give them some money now that's going to help them in their life propel forward, which I thought was really interesting. Okay, so I want to break down kind of the three main ideas that I took away from the book and the pros and the cons of them. So number one,

Starting point is 00:02:11 he would say we don't need a bunch of wealthy 70-year-olds who are now tired of traveling. And actually when it comes their day-to-day life, you know, there's just not that much, you know, that they need to spend money on, but yet they have like, could potentially have like millions and millions of dollars. And what their plan is is when they die, they're going to pass that on. You know, know, to their kids or give it away to charity and all of that. So the interesting thing with the kids is what if you just started giving them more money now and let them use it in their current lives, like we said earlier, you know, a lot of them in their 20s and 30s, you know, I mean, if it's there, they're going to benefit from that money, I would say even more in that age range versus, you know,

Starting point is 00:02:56 if they die at 80 and you hand it down to your 60-year-old kids, well, they're fine at that point, then it's going on to the grandkids. So if that makes sense, I really did. I was like, man, that's a, I love that idea because part of changing your family tree is helping your kids. And again, it's a very fine balance because you don't want to just like throw a bunch of cash at your kids. And again, not everyone has that ability to. I understand that fully. If you're on the baby steps, you're probably thinking, okay, Rachel, that's great for someone else. But if you have that mindset, there is something about intentionally when you give money or spend money that your kids are able to use for assets or for themselves, it's a really

Starting point is 00:03:36 beautiful thing. Now, the con is that your kids still need to build character. There's dignity that they still have to work and they still have to provide for themselves. So it's almost like you don't want to like give them so much so they don't have to do anything. But could you give them enough while you're still alive to help them start off on the right foot? It's an interesting concept. Number two is if you're planning to donate a large sum of your money, do it now. So, So he would say, you get to see the impact of your generosity and be able to see what is happening in the world from your generosity. And again, instead of waiting to die with possibly millions in the bank, if you're investing

Starting point is 00:04:14 all of that, you don't get to see that. And I'm like, man, you know, there is something powerful. If you want to do something with that money and help people, help them in today's world if you can, that's why I'm always pro-giving, right? We always talk about that, even on the budget. It's like the top line item. but this is like more of a magnified idea. So give even more and don't just wait until you're dead.

Starting point is 00:04:34 I like that. Now the con is, obviously the average person, we're not Bill Gates and don't have massive amounts of money to like throw at places now. But again, it's more of that concept. Can you live more in the present with your money instead of waiting for decades and decades down the road? I don't know.

Starting point is 00:04:51 That's a good question. All right, number three is enjoy your money earlier on. So a little disclaimer here because I never, want to say that you should just rack up tons of debt and go do whatever you want with your life. No, because that's going to end up bringing you less happiness and less enjoyment. So again, this book, there's parts of it. They'll say, okay, this is for people that, you know, maybe furthered on the road, financially speaking.

Starting point is 00:05:14 But his big point was, again, instead of this hoarding mentality and saving and saving kind of that scarcity mindset, that you're thinking, okay, what if you just spent some of it? And y'all, I am here to tell you, like, we talk to people on the, Ramsey Show, who are on baby steps, you know, four, five, six, even seven. And they're like, oh my gosh, I'm so scared to spend money. And we like, ask them some questions. And there's been plenty of calls that I'm like, go on a cruise. Like, go spend some of your money and enjoy it. And do it while you're able-bodied. And you're able to go and do things and experience things. And there's just something beautiful about doing that with people that you love. And, you know,

Starting point is 00:05:52 I think about, like, going to concerts. And if you have the ability to be like, yeah, I'm going to buy another ticket and bring a friend with me, right? Or traveling or whatever you want to spend money on. Again, I lean more experiences. I think you get some joy out of that than just buying a bunch of like purses. But there's something about saying, okay, I don't want to have this scarcity mentality. I want to be able to enjoy some of my money. And we want you to do that. We say live like no one else. So later you can live and give like no one else. And that's part of that second part of the statement. But instead of waiting until you're 80 years old to start enjoying it, enjoy some of it now. So I really like that. Now, the con of that is the baby steps, you know, we never want you to put that on the back burner. I want you to progress quickly and efficiently with your money. And so some people could read this book and be like, oh my gosh, she's telling me just to go and spend everything I have and enjoy my life. So that yolo mentality, it's somewhat there. But I want you to have a strong financial foundation and the actual margin to be able to do it. But that's what I love about the baby steps is it can get you there, you know, in a reasonable time. So the author, you know,

Starting point is 00:06:55 He's kind of a little lukewarm on like 401Ks and that kind of thing. And I'm the opposite. I do think generational wealth is a beautiful thing. And I would not recommend trying to die with zero. But I loved that it stretched me some. I think it did give me permission to a degree. Like, yeah, let's go and enjoy that. Let's go and do that.

Starting point is 00:07:13 Like, I don't know. There was something about it that was freeing to me. But I would say, read it with some, you know, with some warning. I think, again, some people could read it and be like, oh, my gosh, I'm going to go and just cash out everything and just live my best life. We want to be wise. We want to be smart. And I would not want to go and spend or give all the way down to zero before I die because that is scary. You want money up until you're dead for sure. And if you had some leftover, that's good too, right? So again, there's just this different concept, which I really appreciated and I liked. So I'm glad that I read the book. And I would be curious, yeah, what you guys think about it. And you know, I had Dr. Arthur Brooks on the show. And he did talk about ways that money actually does bring joy and happiness. And the one thing it doesn't is when you just buy a bunch of stuff, that materialism and all of that. So when I hear him say that and then I read this book like, man, there is a beautiful thing of giving today,

Starting point is 00:08:06 enjoying your money today, maybe helping your kids more than you thought you would today if you can. So again, there's some great stuff. But the reality check too is after years of working the baby steps, that foundation still has to be laid first. Now, if you thought this episode was interesting and you want to check out my episode on the book that changed how I think about money. That one is next. Remember you guys to take control of your money and create a life you love.

The Rachel Cruze Show - Should We Really Want to “Die With Zero”? (My Honest Opinion)

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