What Is the Die From Zero Movement (and Is It Right for You)?
The personal finance world loves acronyms—or should we say, financecronyms . To this list we can add DWZ: the Die From Zero movement. The Die With Zero movement is a financial philosophy that challenges traditional ideas about savings and retirement. Unlike the FIRE (Financial Independence, Retire Early) movement, which emphasizes aggressive saving , DWZ encourages people to spend their money more freely throughout their lives. By living this way, you strive to spend the money you have rather than live for a future that is not guaranteed; you will use up the assets you have now and die with “zero.” This approach aims to balance financial security and a fulfilling life, advocating strategic spending rather than excessive saving.
Basic principles of “Die from scratch”
Here are the main philosophies that guide DWZ supporters.
1. Maximize your life experience . The DWZ movement emphasizes the need to spend money on meaningful experiences while you’re young and healthy enough to enjoy them. This could mean traveling, pursuing a hobby, or investing in personal growth. The idea is that these experiences often bring more benefit and happiness than material possessions or a large bank account later in life.
2. Balance saving and spending . While the movement does not advocate reckless spending, it does encourage finding a middle ground between saving for the future and enjoying the present. This means saving enough to meet future needs and maintain financial security, but not accumulating wealth unnecessarily through current experiences and opportunities.
3. Use your money as a tool . DWZ proponents view money as a means to improve one’s life rather than as an end goal. This principle encourages people to think critically about how their money can best serve their happiness and fulfillment, rather than simply accumulating wealth for its own sake.
4. Die with (close to) zero . The ultimate goal of the DWZ movement is to use up most of your assets by the end of your life, leaving a minimal inheritance. This does not mean dying penniless, but rather spreading out your expenses and experiences so that by the end of your life you have used most of your resources, maximizing their utility.
Key differences from FIRE
While both FIRE and DWZ are alternative financial philosophies, they differ significantly in their approaches. FIRE focuses on early retirement through extreme savings and frugality, often with the goal of leaving a traditional job as quickly as possible. Instead, DWZ emphasizes the need to enjoy life now and throughout life, rather than delaying happiness until future retirement.
Additionally, DWZ encourages strategic spending throughout your life, not just in retirement . This means you can potentially work longer while still living a more balanced and enjoyable life, rather than sacrificing current experience for future gain.
Is Die With Zero right for you?
The DWZ movement is especially popular among DINKs (double income, no children) and other people who have more financial flexibility and fewer dependents. It will appeal to those who prioritize experiences over leaving a large inheritance, as well as people who want to make the most of their money while they are still young and healthy enough to enjoy it to the fullest.
Consider adopting the DWZ philosophy if you value experiences over material possessions and find more satisfaction in creating memories than accumulating wealth. This may also be suitable if you don’t prioritize leaving an inheritance , as the movement encourages using most of your assets during your lifetime. Additionally, if you are willing to take some financial risk and believe in your ability to manage money effectively over time, DWZ may fit your worldview well.
Of course, be careful if you have dependents who rely on you for financial support, as the DWZ approach may not provide the long-term security they need. Likewise, if you have a strong desire to leave a financial legacy or support causes after your death, this philosophy may not align with your goals. Finally, if you’re a risk-averse person or particularly concerned about unexpected costs down the road, the reduced safety net inherent in the DWZ approach may cause more stress than it’s worth.
The Die With Zero movement brings a new perspective to personal finance, encouraging people to live their lives to the fullest while remaining financially responsible. As with any financial philosophy, it is important to consider your personal circumstances, goals and risk tolerance before fully committing to this approach. It may be helpful to consult with a financial advisor to determine how the elements of DWZ can be incorporated into your financial strategy in a way that fits your unique situation and aspirations.