Die Broke

[Golden Mean]

He seems to be saying "Don't leave the workforce when you decide you are psychologically and financially ready to go, stick around until you are forced out!" Frankly, I don't find that an attractive prospect, and, ISTM, it's also contrary to his repeated statements that you shouldn't base your identity on your work. If you aren't identifying with your work and ability to earn, why cling so hard?

I think this attitude comes from his philosophy that you should be spending now. I haven't read the book in a while but I remember him talking about gifting money now while you can see your children enjoy it instead of waiting to pass along your nest egg when your dead.

I think this really comes down to the old debate, how much (money/spending/traveling) should you enjoy now and how much should you defer.

GM

 

[landover]

Threshold Earner

Die broke looks like:

Are you a "Threshold Earner"? - davdin's blog

A threshold earner is someone who seeks to earn a certain amount of money and no more. If wages go up, that person will respond by seeking less work or by working less hard or less often. That person simply wants to “get by” in terms of absolute earning power in order to experience other gains in the form of leisure—whether spending time with friends and family, walking in the woods and so on. Luck aside, that person’s income will never rise much above the threshold.

 

[ziggy29]

I think this really comes down to the old debate, how much (money/spending/traveling) should you enjoy now and how much should you defer.

It's also a reminder, IMO, that different people find different "values" with their money. Some people derive the most benefit by spending it. Some people most enjoy giving it away. Others still get their "pleasure" from money in the secure feeling they get by stashing it all away.

Of course, there's nothing wrong with a healthy mix of all three if one can easily afford to make those choices.

 

[kyounge1956]

Die broke looks like:

Are you a "Threshold Earner"? - davdin's blog

A threshold earner is someone who seeks to earn a certain amount of money and no more. If wages go up, that person will respond by seeking less work or by working less hard or less often. That person simply wants to “get by” in terms of absolute earning power in order to experience other gains in the form of leisure—whether spending time with friends and family, walking in the woods and so on. Luck aside, that person’s income will never rise much above the threshold.

Being a "threshold earner" sounds like just my cup of tea, but the opposite of the two work-related maxims in Die Broke. A person who takes "Quit Now" and "Don't Retire" completely literally would always be looking for a better (i.e. more remunerative) job, only cutting back when forced to by ill health and/or unwillingness to hire on the part of prospective employers.

Of the other two ideas, "Pay Cash" is already partly implemented. I do use a debit card, but have been credit card averse since long before I read the book and plan to be completely debt-free after retirement by selling my current house and using the proceeds to pay in full for a place to live. "Die Broke" by an increased emphasis on annuities rather than self managing my portfolio is an idea that could grow on me, especially since there's nobody I particularly want to leave a big estate to. I don't think I would want to annuitize all my assets, though. I might need or want to buy into a continuing-care or assisted living place at an advanced age, and need a large sum of money for buy-in.

 

[Chuckanut]

i guess dying broke is ok as long as I don't leave my kids a pile of debt from having to care for me. i would like to leave them something, even if it is no extra cost for maintaining dear old dad in his last few years. A little extra cash to remember me is fine also.