Die Broke (Live Rich)

Stephen M. Pollen's national best seller Die Broke is a very interesting personal finance book that I came across recently. I am not saying I agree with the concepts he introduced. In fact, I hold some completely different points of view. However, his concepts are unusual, unique and intriguing.

These are the four steps plan in the book:
1. Quit today
2. Pay cash
3. Don't retire, and
4. Die broke

Quit Today requires us to view our job as, literally, just JOB, NOT career. Be our own boss and quit to think we have boss even if we work in an organisation. View ourselves as free agents that work in an organisation. The person we usually call 'boss' is our client, not boss. Jump ship if need to for a better deal. Resign if it is no longer worth while. Forget about career development in an organisation but concentrate on skills development.

Yes, it means forget about career, a series of related jobs that are viewed in one way direction, in an organisation that bring you higher salary and status. You rely on your skills set, concentrate on jobs and become your own boss.

Pay Cash means pay cash. Don't use credit. Get rid of debts and save money. Get rid of credit cards and ATM cards! Get rid of the conveniences that encourage you to spend money.

Don't Retire. Work and that leisure isn't more fulfilling than work. (I agree with my hands and legs up.)

Die Broke. Spend all your money before you die. In an ideal situation, Stephen wrote, you write your last cheque for your funeral expenses. Go vacations, live a good life. Forget about leaving inheritance to your children. Instead, give your children money and help them when you are alive and when they are in need. Buy annuities from reputable and good insurance companies at your old age to ensure you will never outlive your money. Die broke, live rich and NOT live broke!

These are unique ideas. Personally I think Die Broke is a risky strategy. You rely on insurance companies to honour their annuities' payments. What if the insurance company goes bust? No matter how reputable or how high an insurance company was rated, buyers bear the risks of not covering thier future incomes when they are old.

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