"The Optimal Life" Book Notes#
Author: Bill Perkins
Reading Time: 2 hours
These are the notes and excerpts I recorded while reading "The Optimal Life" on WeChat Reading.
Preface#
May you have the most fulfilling life, filled with adventure and love.
May you have the most fulfilling life, filled with adventure and love.
1 Ultimate Life#
Some delayed actions are reasonable because treating every day as the last day of life would be foolish: you wouldn't want to work, study, prepare for exams, or see the dentist. Therefore, a degree of delayed gratification is desirable, as it will pay off in the long run.
Don't miss opportunities out of fear of wasting money; wasting life is what you should be more concerned about.
Life is not a game of "Space Invaders"—not every penny you earn will give you points—but many people view life as a points game. They just keep making money, thinking only about maximizing wealth, and rarely consider what maximum utility they can derive from wealth, such as what they can give to their children, friends, and society now, rather than at the end of life.
Spending money on experiences makes us happier than spending it on material goods. Material wealth may initially bring great joy, but it often depreciates quickly. In contrast, experiences appreciate over time; I call this "memory dividends."
Some delayed actions are reasonable because treating every day as the last day of life would be foolish: you wouldn't want to work, study, prepare for exams, or see the dentist. Therefore, a degree of delayed gratification is desirable, as it will pay off in the long run.
Don't miss opportunities out of fear of wasting money; wasting life is what you should be more concerned about.
Life is not a game of "Space Invaders"—not every penny you earn will give you points—but many people view life as a points game. They just keep making money, thinking only about maximizing wealth, and rarely consider what maximum utility they can derive from wealth, such as what they can give to their children, friends, and society now, rather than at the end of life.
Spending money on experiences makes us happier than spending it on material goods. Material wealth may initially bring great joy, but it often depreciates quickly. In contrast, experiences appreciate over time; I call this "memory dividends."
2 Investing in Experiences#
Spending money to buy an experience gives you not just the experience itself but also all the subsequent dividends that arise.
Continuously making money while completely forgetting that the purpose of earning is to gain experiences that define your life.
Indeed, you need money for retirement; however, in the future, you will mainly rely on memories to get through retirement, so you must spend enough money to invest in memories.
Spending money to buy an experience gives you not just the experience itself but also all the subsequent dividends that arise.
Continuously making money while completely forgetting that the purpose of earning is to gain experiences that define your life.
Indeed, you need money for retirement; however, in the future, you will mainly rely on memories to get through retirement, so you must spend enough money to invest in memories.
3 Why Should You Zero Out Before You Die?#
To fully enjoy life rather than just getting by, you cannot continue to drift aimlessly through life; you need to take control of your life proactively according to your own wishes.
When you are on a winning streak, even if your rational mind tells you to stop, it is hard to do so.
"The Optimal Life" does not care how you got your money. Whether earned through work you love or inherited from your great-grandfather; whether it is a byproduct of your hobbies or comes from a wealthy family—once the money is in your hands, it is yours, a part of your life spent, and you can use it to exchange for anything that makes life better.
Many people tell me they are afraid—even terrified—that they will run out of money before they die. I understand their feelings; no one wants to live in poverty in their later years, so it is understandable that people save for the future. I am not saying you shouldn't save for the future, but some people save too much and think too far ahead, depriving themselves of the present just to take care of their future elderly selves—whether they will live to use that money is another question.
A wiser approach is to spend your medical expenses on the "front end" (staying healthy, preventing disease); spending on the "back end" will be very unwise.
To fully enjoy life rather than just getting by, you cannot continue to drift aimlessly through life; you need to take control of your life proactively according to your own wishes.
When you are on a winning streak, even if your rational mind tells you to stop, it is hard to do so.
"The Optimal Life" does not care how you got your money. Whether earned through work you love or inherited from your great-grandfather; whether it is a byproduct of your hobbies or comes from a wealthy family—once the money is in your hands, it is yours, a part of your life spent, and you can use it to exchange for anything that makes life better.
Many people tell me they are afraid—even terrified—that they will run out of money before they die. I understand their feelings; no one wants to live in poverty in their later years, so it is understandable that people save for the future. I am not saying you shouldn't save for the future, but some people save too much and think too far ahead, depriving themselves of the present just to take care of their future elderly selves—whether they will live to use that money is another question.
A wiser approach is to spend your medical expenses on the "front end" (staying healthy, preventing disease); spending on the "back end" will be very unwise.
4 How to Spend Money? (Not Really Leaving a Penny Behind Before You Die)#
They did not endorse any specific calculator but directed me to their website (https://www.soa.org) to take a look. This site mainly provides professional actuarial tools and recommends a very useful tool: the Actuary Longevity Illustrator (https://www.longevityillustrator.org/).
The premise of this book is that you should focus on maximizing your life's enjoyment rather than maximizing wealth; these are two very different goals. Money is merely a means to achieve the goal, and earning money can help you achieve the more important goal of life enjoyment, but trying to maximize wealth can actually hinder that more important goal.
All savings beyond the minimum expenses must be "ferociously" spent on experiences you enjoy. The emphasis on "ferociously" is because declining health and diminishing interests mean that your list of activities will shorten as you age.
They did not endorse any specific calculator but directed me to their website (https://www.soa.org) to take a look. This site mainly provides professional actuarial tools and recommends a very useful tool: the Actuary Longevity Illustrator (https://www.longevityillustrator.org/).
The premise of this book is that you should focus on maximizing your life's enjoyment rather than maximizing wealth; these are two very different goals. Money is merely a means to achieve the goal, and earning money can help you achieve the more important goal of life enjoyment, but trying to maximize wealth can actually hinder that more important goal.
All savings beyond the minimum expenses must be "ferociously" spent on experiences you enjoy. The emphasis on "ferociously" is because declining health and diminishing interests mean that your list of activities will shorten as you age.
5 What About the Kids?#
Putting children first means you should give them money early; you should develop a detailed plan to ensure that the money left for your children is given to them when it can be of maximum utility.
Ultimately, if you wait until after your death to let your children inherit your estate, you are essentially "leaving it to chance." I call this the "three randoms": at a random time, giving a random amount of property to random people (because who can know which of your heirs will still be alive when you die?). Randomness—how can that be for the benefit of others?
Going with the flow is the opposite of prudence. It is easy to go with the flow; most people around you do so, so when you follow their example, you are just going with the flow like everyone else. In fact, you may not even realize you are going with the flow. A sad fact is that many people could have been more prudent with their lives but failed to do so, and the same goes for their children.
A person's ability to derive true joy from "gifts" declines with age. Similarly, after a certain age, your ability to convert wealth into enjoyable experiences will also decline. Many activities require you to reach at least a minimum psychological and physical state to enjoy.
I choose to give money to my children and others at the right time, which is when that money can have the maximum utility in their lives; after that, that money is no longer mine but becomes theirs. There is a clear distinction between the two. I find this approach liberating: I am free to spend money on myself. Even if I want to spend money wildly, I don't have to worry about affecting my children. They can spend their money as they wish, and so can I.
The purpose of money is to gain experiences; for your children, one of those experiences is companionship. Therefore, if you are too busy making money and not creating shared experiences with your children, then it is a "deprivation" for both you and your children.
Whether money or time is given to children, charities, or yourself, the key point is the same: there is an optimal time, but it is certainly not after you die.
As long as what is done is what is desired, I must respect their decisions.
You can only be generous while you are alive, truly make choices and bear the consequences, and choose who to give your money and time to or not. If you donate generously while you are alive, I would consider you selfless, but after death, there is no choice. So, to be precise, you cannot be generous after death.
The most obvious social benefit of education is reducing poverty and crime and violence.
◎ Think about at what age you want to give money to your children, how much you want to give, and think about donations to charity from the same perspective. Discuss these issues with your spouse or partner. Do it now! ◎ Be sure to consult experts such as estate planners or lawyers on these issues.
Putting children first means you should give them money early; you should develop a detailed plan to ensure that the money left for your children is given to them when it can be of maximum utility.
Ultimately, if you wait until after your death to let your children inherit your estate, you are essentially "leaving it to chance." I call this the "three randoms": at a random time, giving a random amount of property to random people (because who can know which of your heirs will still be alive when you die?). Randomness—how can that be for the benefit of others?
Going with the flow is the opposite of prudence. It is easy to go with the flow; most people around you do so, so when you follow their example, you are just going with the flow like everyone else. In fact, you may not even realize you are going with the flow. A sad fact is that many people could have been more prudent with their lives but failed to do so, and the same goes for their children.
A person's ability to derive true joy from "gifts" declines with age. Similarly, after a certain age, your ability to convert wealth into enjoyable experiences will also decline. Many activities require you to reach at least a minimum psychological and physical state to enjoy.
I choose to give money to my children and others at the right time, which is when that money can have the maximum utility in their lives; after that, that money is no longer mine but becomes theirs. There is a clear distinction between the two. I find this approach liberating: I am free to spend money on myself. Even if I want to spend money wildly, I don't have to worry about affecting my children. They can spend their money as they wish, and so can I.
The purpose of money is to gain experiences; for your children, one of those experiences is companionship. Therefore, if you are too busy making money and not creating shared experiences with your children, then it is a "deprivation" for both you and your children.
Whether money or time is given to children, charities, or yourself, the key point is the same: there is an optimal time, but it is certainly not after you die.
As long as what is done is what is desired, I must respect their decisions.
You can only be generous while you are alive, truly make choices and bear the consequences, and choose who to give your money and time to or not. If you donate generously while you are alive, I would consider you selfless, but after death, there is no choice. So, to be precise, you cannot be generous after death.
The most obvious social benefit of education is reducing poverty and crime and violence.
◎ Think about at what age you want to give money to your children, how much you want to give, and think about donations to charity from the same perspective. Discuss these issues with your spouse or partner. Do it now! ◎ Be sure to consult experts such as estate planners or lawyers on these issues.
6 Balancing Life#
The essence of Joe's advice is not to spend as much as you earn and bet on a better future, but to find the right balance between spending money in the present (and only on what you value) and wisely saving for the future.
You want your savings amount to be as close to perfect as possible: achieving the best balance between enjoying the present and securing a bright future.
The further you are from the end of life, the more different the trade-offs between living in the moment and planning for the future become.
Twenty thousand days may equal forever. It is evident that no one can live forever; we need to keep this in mind so that we can use our time in the most optimal way and not fall into the trap of "going with the flow."
Many of us experience a disconnect between mindset and reality, creating an illusion that we can have endless "vital years" after retirement, doing whatever we want according to our preferences.
Your ability to enjoy life experiences depends on your physical condition, but money is also important because many experiences cost money, so you should spend money while your body allows.
My conclusion is that the utility of money decreases with age.
In a sense, money brings similar utility to infants and the elderly: at the beginning and end of life, money is almost worthless.
Most of our spending should be concentrated in our true golden years, rather than delaying gratification.
The optimal life requires planning for both survival and living fully.
To have an ultimate life, people need three basic elements: health, free time, and wealth, but the problem is that it is difficult to have them all at the same time.
People of all ages should invest more time and money in their health.
Generally, adults have a stronger ability to delay gratification, but often because they delay too long, it backfires. In reality, they neither choose one marshmallow now nor two marshmallows in 15 minutes, but rather choose one and a half marshmallows ten years later!
"What do I want more?" aligns with personal interest rates: the older you get, the less willing you are to delay an experience, even if someone offers you a lot of money to delay it.
The essence of Joe's advice is not to spend as much as you earn and bet on a better future, but to find the right balance between spending money in the present (and only on what you value) and wisely saving for the future.
You want your savings amount to be as close to perfect as possible: achieving the best balance between enjoying the present and securing a bright future.
The further you are from the end of life, the more different the trade-offs between living in the moment and planning for the future become.
Twenty thousand days may equal forever. It is evident that no one can live forever; we need to keep this in mind so that we can use our time in the most optimal way and not fall into the trap of "going with the flow."
Many of us experience a disconnect between mindset and reality, creating an illusion that we can have endless "vital years" after retirement, doing whatever we want according to our preferences.
Your ability to enjoy life experiences depends on your physical condition, but money is also important because many experiences cost money, so you should spend money while your body allows.
My conclusion is that the utility of money decreases with age.
In a sense, money brings similar utility to infants and the elderly: at the beginning and end of life, money is almost worthless.
Most of our spending should be concentrated in our true golden years, rather than delaying gratification.
The optimal life requires planning for both survival and living fully.
To have an ultimate life, people need three basic elements: health, free time, and wealth, but the problem is that it is difficult to have them all at the same time.
People of all ages should invest more time and money in their health.
Generally, adults have a stronger ability to delay gratification, but often because they delay too long, it backfires. In reality, they neither choose one marshmallow now nor two marshmallows in 15 minutes, but rather choose one and a half marshmallows ten years later!
"What do I want more?" aligns with personal interest rates: the older you get, the less willing you are to delay an experience, even if someone offers you a lot of money to delay it.
7 Segmented Life#
Realizing that nothing lasts forever, that everything will perish and die, can make you more grateful for everything at this moment.
The greatest regret of her patients is not having lived a life true to themselves but rather living according to others' expectations. This is a regret of not pursuing dreams and failing to realize one's own dreams. If you ignore what truly matters in life and instead follow the path imposed by everyday culture, then you are likely to regret it when you reach the end of life.
The concept of limited life stages and the finite number of days in each stage is not related to money. It is important to distinguish that the specific experiences you can have during each period are indeed related to money, but the reality and impact of "limited periods" are not related to money.
Your list will be a unique expression of "who I am" because it is your life experiences that shape you. Highlight: when making your list, do not worry about money; at this point, money will only distract you from imagining the overall goals of your ideal life.
Realizing that nothing lasts forever, that everything will perish and die, can make you more grateful for everything at this moment.
The greatest regret of her patients is not having lived a life true to themselves but rather living according to others' expectations. This is a regret of not pursuing dreams and failing to realize one's own dreams. If you ignore what truly matters in life and instead follow the path imposed by everyday culture, then you are likely to regret it when you reach the end of life.
The concept of limited life stages and the finite number of days in each stage is not related to money. It is important to distinguish that the specific experiences you can have during each period are indeed related to money, but the reality and impact of "limited periods" are not related to money.
Your list will be a unique expression of "who I am" because it is your life experiences that shape you. Highlight: when making your list, do not worry about money; at this point, money will only distract you from imagining the overall goals of your ideal life.
8 Understand Your Peaks#
Enjoying experiences requires money, free time, and health; all three are essential, and having only money is far from enough. For most people, saving money takes time. Therefore, extending your working years to accumulate more savings that you actually do not need means that while you gain some things (money), you lose others of at least equal value (free time and health) even more. The core point here is that more money does not equal more experience points.
Your goal is not to maximize wealth but to maximize life experiences. For most people, this is a huge shift.
Enjoying experiences requires money, free time, and health; all three are essential, and having only money is far from enough. For most people, saving money takes time. Therefore, extending your working years to accumulate more savings that you actually do not need means that while you gain some things (money), you lose others of at least equal value (free time and health) even more. The core point here is that more money does not equal more experience points.
Your goal is not to maximize wealth but to maximize life experiences. For most people, this is a huge shift.
9 Be Bold, Not Foolish#
◎ Identify those opportunities that are almost risk-free for you but that you have not seized. Always remember that seizing opportunities while young is better for you. ◎ Examine those fears that hold you back, whether they are rational or irrational. Do not let irrational fears become obstacles to pursuing your dreams. ◎ Remember that you always have choices. The choices you make reflect what you value and what you do not value, so be sure to make choices carefully.
Remember, "Life is a process of continuously collecting memories."
◎ Identify those opportunities that are almost risk-free for you but that you have not seized. Always remember that seizing opportunities while young is better for you. ◎ Examine those fears that hold you back, whether they are rational or irrational. Do not let irrational fears become obstacles to pursuing your dreams. ◎ Remember that you always have choices. The choices you make reflect what you value and what you do not value, so be sure to make choices carefully.
Remember, "Life is a process of continuously collecting memories."
This article was automatically generated by the WeRead-xLog synchronization tool.