Thinking about the end of your life isn’t the most fun daydream. But this professional poker player says you should plan out your life spending to make the most of your health, money and time. Bill Perkins uses calculations and statistics to make poker decisions. And he also uses data for time bucketing. He organizes the arc of his life into intervals of time. This is a key strategy in his book Die With Zero: Getting All You Can From Your Money and Your Life. Instead of ignoring the end of life, Perkins uses it to backtrack and make sure there will be no untapped resources. He chats with Bold TV about playing your cards right.
Charting your course
Have you heard of an actuarial table? It sounds like something from impossible stats homework. But it’s basically a life timeline. Life insurance companies use actuarial tables to figure out certain probabilities in your life, such as sickness. But those companies aren’t the only people who can use that information. You can forecast your life to make sure you make the most of your resources at the right time. First, figure out your actuarial table using online resources. Then, look at your life in phases using time bucketing. Lastly, decide which life experiences you want in each phase.
Plan lifetime spending for the most fun
There are a few less-than-ideal issues you may fix by planning your lifetime spending. One is using all your resources when you’re young and not leaving enough for the later years. The other is being too frugal with your resources in the beginning and ultimately leaving money lying around. Perkins says you should “solve for fun.” Figure out when you want to have those great life experiences and in which season they’ll be the most enjoyable. To learn more about how to “die with zero,” check out this interview.
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