Earners,

There are few philosophies that will genuinely change the way you think about something. As you get older, you get a little bit more rigid, a little bit more cynical, and you feel as though you have just a little bit of a better sense of the world around you.

However, you should always keep that childlike curiosity because there are ideas out there that will fundamentally change how you think about your entire life. Such an idea for me is a specific mental model found in the book “Die With Zero” by Bill Perkins. Here’s why it so profoundly affected me.

But What About?…

The concept of dying with zero is not necessarily new. We have all heard of the various billionaires who have pledged to give away their vast sums of wealth before they die. Pretty unrelatable stuff. But what about if you lived your life in a way that optimized for giving money away earlier, with the expressed goal of having as little as possible by the time you die?

It’s a pretty audacious goal for people who may not necessarily have literal billions to give away. I don’t know when I am going to die? I don’t know how much money I will have or how much my future family will need? What about my kids' inheritance? For the intelligent and financially minded (clearly you if you are reading this), you have a sort of gut repulsion to this idea, as did I.

But if you give the book a chance, it’s a profound concept that I think Bill explains brilliantly. He addresses all the classic concerns in a very pragmatic and empathetic way. He also has a few different philosophies about how he thinks about money and life, and one of them honestly completely revolutionized the way I view spending.

The Various Types of Currency

Memory dividends. A beautiful way of thinking that changed everything for me. This concept represents the happiness and mental benefit that is derived from meaningful experiences.

A normal dividend is a distribution of cash you get from a business you have ownership in. With stocks or ETFs, if they pay out a dividend, you'll get a certain amount per share of the business you own. Basically, a nice check that you continuously get because you own a piece of the business. Perkins takes this concept and applies it to our memories. When you invest in experiences—such as traveling to new places, learning new skills, or spending quality time with loved ones—you enjoy the immediate pleasure and satisfaction they bring. However, the true value of these experiences extends well beyond the initial moment. The memories created from these experiences continue to enrich your life as you revisit and relive them in your mind. These “memory dividends” are the ongoing emotional benefits that arise from reminiscing about past adventures, milestones, and cherished moments. Every time we experience something amazing, the memory of it lives in our head - and every time we remember it, it pays out a “dividend” of joy.

The smile that creeps up on us, the excitement we have with our friends reminiscing on it, the tears that run down our face from laughing so hard; there’s an intoxicating natural high we get that you can’t quantify financially. While financial investments yield monetary returns, experiences provide emotional and psychological returns that enhance our lives in profound ways.

Just like the markets, compounding is everything with these memory dividends. The value of experiences accumulates, providing an ever-growing source of happiness and contentment. Delaying such investments in favor of accumulating wealth can result in missed opportunities and diminished capacity to create and savor these invaluable memories. It’s vital to be prioritizing these memory-generating experiences early and consistently throughout life, while you have energy, are able-bodied and have the will to do so. If done earlier than later, you maximize the emotional returns and ensure a richer, more fulfilling existence.

Collect as many memories as you can as early as you can and you will have billions in the form of memory dividends paid out to you.

But Bro… I Thought We Were Trying To Get Rich?

We are. Filthy stinkin’. But yo - we have a life to live. Our youth slowly slips away from us every day that passes. The old adage of work hard, play hard is something to live by.

People take what I am saying too literally though - and it manifests itself in ridiculous and irresponsible financial decisions under the auspice of the all too common “enjoying our youth” mantra. No, you’re being an idiot and not deriving any further pleasure by spending irresponsibly. That’s the worst part. Your dumb, painful purchases aren’t paying out anything!

What I am saying is to be thoughtful. Think through it - spend lavishly yet within your means on yourself with purpose. Find simple joys and experiences that really do create those lasting, joyful pieces of real estate in your head. You need to systematically build in fun and experiences into your planning - but there SHOULD be a plan. Skyrocket your income at work, invest in the markets and assets - then f off on a boys or girls trip. That’s the play. You need to find the balance that works for you - but you can’t let either tip too far in the other direction.

When I read this book a few months ago, it throughly helped me reframe how I thought about my career, my wealth and my youth. I feel a spectacular new levity and happiness as I am less stressed about each individual aspect and realize there’s a legitimate value to collecting lasting memories while I have the energy to do so. I always sort of knew that, but this concept really crystallized it for me - and I lead my life differently because of it.

If you have any questions, please respond - would love to help you think through how you can apply this in your life.

Earn more,

Nate