Kurumi writes

Die With Zero by Bill Perkins, published in 2020, challenges the traditional focus on saving for retirement. Instead, it encourages spending money on meaningful experiences while you’re young and able to fully enjoy them.

The image is from Amazon (https://amzn.asia/d/bXwYicP)

This blog post highlights key takeaways from the book while also exploring what I felt was missing, particularly from the perspective of younger generations grappling with modern financial challenges like the housing crisis.

Challenging the Retirement-Focused Mentality

In today’s world, many people focus heavily on saving for retirement. The common belief is that a comfortable life in later years depends on relentless saving in your youth. However, this book challenges that narrative and urges readers to rethink their ideas about money. Instead of investing for an uncertain future, the author encourages us to spend and enjoy life while we’re still physically and mentally capable.

Why Spend Now? Three Key Reasons:

1. Money Loses Value Over Time
   As you age, the value of your money diminishes—not just due to inflation but because your ability to enjoy it wanes as well. Energy and health decline with age, reducing the joy you can derive from experiences.
2. Life’s Uncertainty
   Life is unpredictable, and waiting too long can mean you miss out on opportunities. Some of your loved ones may no longer be around. Circumstances may change, and you might not have the same freedom or flexibility to pursue your dreams.

A Personal Reflection…

Looking back, I’ve made several bold choices by embracing the “spend while you’re young” philosophy. For instance, I took a leave from college to pursue internships even though I felt unprepared. I bought a Mac Studio when I felt I needed the best tools for my work. I booked flights to Canada to meet my partner, and rented Airbnbs to share special experiences with him. We also went on spontaneous trips to Hokkaido and organized small but memorable birthday parties. I am even going to travel abroad in Asia early this year, and attend an academic conference in Singapore.

Every time, I reminded myself: “I may not get this chance again in the future.” These decisions shaped who I am today, and I never regret prioritizing experiences over saving every penny (yen). So, while I enjoyed learning the reasons as to why we should spend money while young, the main point of the book didn’t seem really surprising to me as I’ve already internalized them.

Missing Gen Z’s Perspective: The Housing Crisis

While the book offers valuable insights, it doesn’t address a critical concern for younger generations—the housing problem. For many young people, especially in cities of developed countries, inflation and skyrocketing housing costs just make it so hard to balance spending now with preparing for the future. It’s so serious that, according to this CNN post, more than half of American renters who want to buy a home think they’ll never afford one. I see similar news coverage in Tokyo (where I live) quite often too. Owning a home often feels out of reach, and we (at least I) feel the great need to save so I can own a place.

Applying the Book’s Ideas to Housing

Let me try applying the book’s idea to the young’s situation. One concept introduced in the book is deciding on a “peak” for your assets. The author suggests choosing this peak based on age rather than the total amount of money saved. The recommended range is between 45 and 60 years old, and once you reach the peak, you can embrace “decreasing” your savings.

We could adapt this idea to tackle the housing crisis. For example:

• Save a specific percentage of your income toward housing until you reach a set age.
• Once you hit that age, use the accumulated savings to purchase a home that aligns with your means and lifestyle.

Imagine you’re 23 years old, just starting your career, and want to balance saving for a house with living your best life. Here’s what it could look like:

1. Start Saving Early 🎯
   • Let’s say your starting annual salary is ¥3.5 million. Commit to saving 10% of your income each year purely for a future home purchase. That’s ¥350,000/year or roughly ¥29,000/month.
   • Your salary likely increases as you age, but let’s just ignore it for simplicity.
2. Leverage Compound Interest 📈
   • If you invest these savings in a portfolio earning an average annual return of 5% (moderate risk), here’s how much you could accumulate:
     • By age 30 (7 years):
       You’d have about ¥2.85 million in savings.
     • By age 35 (12 years):
       Your savings could grow to approximately ¥6.15 million. This amount could significantly contribute to a down payment on a modest apartment or condo in many cities.
3. Keep Enjoying Life!

This approach may balance the need to prepare for a major investment like housing while still leaving room to enjoy your youth. I’ve always believed that setting financial goals means tying them to a specific timeframe, like achieving something by a certain age. So, the idea of simply embracing what I can afford in the moment feels refreshing—and, in a way, surprisingly liberating.

Conclusion

Die With Zero encourages spending money on meaningful experiences while you’re young, rather than saving solely for retirement. While I appreciated the book’s fresh perspective, its message wasn’t entirely new to me, as I’ve already embraced the philosophy of prioritizing experiences. However, I wish it had addressed issues like the housing crisis, which is a major concern for Gen Z. Overall, the book’s ideas are valuable, and applying its principles—like choosing a financial “peak”—can help balance enjoying life now with planning for the future.

This book was recommended to me by a friend from the same generation, and I’m looking forward to having a discussion with them about it.