How "Die With Zero" Changed My Financial Independence Journey
When I first committed to achieving semi-financial independence (FI), I was all in. Every dollar I could scrape together went into my savings. The plan was simple: save aggressively, invest wisely, and hit my target number. But then, I listened to Die With Zero by Bill Perkins—and everything changed.
I’m in my late 30s now, with a goal of reaching semi-FI by 50. Originally, I set a target of saving $30,000 per year, which would comfortably land me at $650,000 within a decade. I had a few years of cushion, and it felt like the perfect plan. But Perkins’ book posed a crucial question: "What for?"
I use the compound interest calculator on the smart money website to help me determine my semi FI goal.
Shifting from "Save Later" to "Live Now"
Before kids and marriage, my wife and I traveled a lot. Some of our best memories come from those adventures. When our kids were born, I shifted my mindset to, “We’ll save for 10 years and then take them on big trips once they’re older.” Camping trips in the meantime, but no overseas adventures.
Then I thought back to my own childhood. By the time I was 18, I wasn’t interested in family holidays—I wanted to travel with my mates. The realisation hit me: I was planning to wait for what I believed would be their prime years, but in reality, their prime time for family trips is now.
That’s when my perspective shifted from saving for "someday" to living now.
Creating Our Family Holiday Fund
We decided to set up a holiday fund—what the Barefoot Investor calls a Smile Account. Here’s how we did it:
Set up a dedicated holiday fund: After comparing interest rates, I chose a savings account with Great Southern Bank, earning 4.7% without jumping through hoops. I later moved it to Macquarie Bank, which offered an introductory rate of 5.5%, before settling on 5.3% going forwards.
Made a travel wish list: Since I am from the UK and my part of my wife’s family are from there, the UK and Ireland were at the top of our list. We added Bali, Africa, Canada, New York, Tasmania and Melbourne. Local camping trips will become part of the mix.
Mapped out a timeline: I created a timeline from now until our kids are 19 and 16—just 11 years. With 10 destinations on the list, time is short! But the excitement of planning these trips is what drives us forward.
Our timeline for what is now the next 11 years.
Getting Started with Saving and Prioritising
Once we had the list, we needed to start saving. Luckily, we had some savings set aside, and thanks to our bucket strategy, we allocated funds for this new goal. We started with $400 per fortnight, though that number has fluctuated. Currently, we’re putting away $292 per fortnight.
Being realistic has been key. We wanted to visit the UK earlier. My nan is 96 years old, but financial constraints pushed the trip to late 2024. On the plus side, this avoids peak season and the infamous UK rain! The first big expense—flights—is already paid for, and everything else is fallen into place.
The Freedom of Debt-Free Travel
Knowing we won’t need to rely on credit cards gives us peace of mind. The money is there when accommodation is due, and we’ll be able to enjoy our trip without constantly checking our bank balance.
Our travel budget for the UK trip.
The strategy is simple: if you save $400 per fortnight, by the end of the year, you’ll have $10,400. For us, the amount has shifted, but the principle remains—steady savings over time leads to fulfilling experiences.
Balancing Expectation with Reality
One of the biggest lessons we’ve learned is to manage our expectations. Our kids are still young; they’ve seen places in movies but don’t fully grasp the world outside of New South Wales. Keeping our travel plans realistic and achievable has been key.
Start small, build as they grow, and adjust as needed. Some destinations may change over time, but based on our budget and timeline, our list is 100% achievable.