Derek Sivers and the Art of Enough

https://brendancahill.io/brensblog/dereksivers

by Bcahill82 • 6 years ago

182 78 6 years ago

Does anyone else find it frustrating when people talk about not working too hard and already having enough, after they have become wealthy?

antisocial• 6 years ago

Wealth is relative, one can be a multimillionaire and still feel inferior to a billionaire. Even in billionaires, there is a ranking game.

AnIdiotOnTheNet• 6 years ago

Whatever. There's a big difference between feeling inadequate while sitting in your third vacation home and working 40-60 hours a week at a job you hate because if you were doing what you actually wanted to do instead you'd be starving in a ditch somewhere by now.

toast04• 6 years ago

Probably the best predictor of if you're going to be upset about people having more than you if you've got $10M is if you're upset about people having more than you when you have $100k.

There will always be people who have cooler stuff than you. If you get upset about it when the cool stuff isn't like stable housing, food security, and decent transportation, the problem isn't lack of funds, it's your attitude.

richajak• 6 years ago

agree, but we are not their audience. They want to signal to their fellow successful friends that they are humble.

For mortals like us, we have to be smart, work hard, persevere, etc. Life is a journey that I must do to my best ability.

pritovido2• 6 years ago

Derek did not became wealthy. He gave the $22 million dollars he got from selling his company to a fund, and gets over $1000 each month, hardly "wealthy".

Derek has worked in a circus and knows how to live cheap enough. He also has lots of friends so he does not need to pay for lots of things.

I know people that earn in excess $10.000/month and spend it all or even get into debts.

Mikushi• 6 years ago

$22 million dollars is not "hardly wealthy". It's filthy rich.

marcinzm2• 6 years ago

Wikipedia disagrees:

Derek Sivers transferred ownership of his company to a charitable remainder unitrust for music education, and had the trust sell it to Disc Makers. This agreement requires the trust to pay Sivers 5% of the trust's value annually (hypothetically $1,100,000 pretax, based on a sale price of $22 million as reported by Sivers)[4] until death, while upon death the remainder will ultimately go to charity.

So he actually earns around $90k per month. The foundation was also probably a tax dodge more than some altruistic thing.

gwidhehe• 6 years ago

I actually know Derek in real life (although not very well). He gave away most of his wealth, but he still draws a very comfortable salary from the fund he set up with the wealth that remains. He's rich.

I'm not sure where you heard the $1k/month figure, but there's no way he possibly makes that little. He lives in Oxford, possibly the most expensive city in the UK outside of London. $1k/month in Oxford isn't enough to rent a one-bedroom flat, without even considering other living expenses - there's no way he lives in Oxford on an income that low.

coldtea2• 6 years ago

Well, it's not like you don't have enough money with Island et al...

(Yeah, I'm joking)

chrisblackwell2• 6 years ago

I get so many emails for him, people asking me to invest in their Soccer team or whatever.

cheez4• 6 years ago

What if, learning to be happy with "enough", is how people get filthy rich?

https://sivers.org/richand

tw043• 6 years ago

So what's the path from living with 4 other people working 40 hours a week at McDonald's to filthy rich? Haven't gone to college, don't have a skill that sets you apart (music/art/etc), and aren't particularly intelligent or scrappy. Seems to me there's literally no path from A to B.

ip26• 6 years ago

Different advice for different circumstances. Do you get upset when elite athletes talk about the importance of avoiding overtraining, when they have already become elite?

secstate• 6 years ago

Apples and oranges my friend. Being elite and overtraining are orthogonal. By definition, overtraining is pushing your body too far too fast. No one can train for a 100 mile race by doing 3 50 mile training runs in a week. That's not how physiology works. Discipline and lots of hard work can help you be elite, but overtraining is never good. Never.

raghuveerdotnet• 6 years ago

That is why I usually try to avoid advice from people who (explicitly) give advice. It is better to observe what they do than what they say. Even if you wind up not enjoying the wealth, you’ll have understood it yourself and not be cursing yourself for not having tried. Except for life and death situations, and situations involving technical expertise, this applies to everything. Most of the time it is just our laziness selecting for examples of success that allow it to stay while reaping the benefits of working hard. A mind virus discouraging responsibility.

war10252• 6 years ago

I remember when I was in college trying to figure out what to shoot for in life, I had the realization that if you shoot for "more" it's a goal you'll never reach. There is no end to it.

But if you shoot for "enough", there is a very definite point between "more than enough" and "not enough".

It's a nice goal to shoot for. When you are above "enough", it means you can relax and enjoy life.

bob33212• 6 years ago

But then you have to answer the question of what makes you happy. For some people buying an ocean front house and fishing or playing golf all day is the answer. But for the successful entrepreneur type that isn't "enough" usually

war10252• 6 years ago

But then you have to answer the question of what makes you happy.

Self-introspection and awareness are helpful basically always, in my opinion.

If you don't know what you want, you'll never be satisfied.

S_A_P• 6 years ago

Derek and his writing used to be a frequent top page link on HN. When I first started reading them I found them inspirational. As I read more of his writing I got the impression that most of the things he did were presented in the light of “I’m just a simple person that doesn’t need a lot” type of minimalism. However if you look at his “charity” he seems to have just figured out a way to avoid taxation and keep most if not all of his CD Baby exit. Additionally despite using what was the .com boom environment of the late 90s and early 2000s to generate his wealth I believe he has renounced his US citizenship and lives abroad now. I don’t care that he did that really, it just seems that his public persona is a bit of an act and hides a bit of entitlement/petulance.

johnwheeler• 6 years ago

“I don’t need a lot” isn’t mutually exclusive with “I don’t want to pay a lot in taxes”. Besides that, he lives in New Zealand where everything costs twice as much. Sounds like your crediting his success solely on being at the right place at the right time. I got news for you - that’s pretty much all success or a component of it. Not to mention, he did build a sustainable business that gave independent artists an outlet to distribute their music. I’d say the guy is a saint.

ashconnor• 6 years ago

When I emailed him in March he said that he left Singapore for England because he wanted his son to grow up near nature.

onemiketwelve• 6 years ago

I'm only going off of what I heard in his interviews, and talks throughout the years, and I admit I'm def a bit of a fanboy of his.

But regarding the charity, from reading your comment I thought maybe this was another case of don't seek your heroes. Here's what he says about it: “Independent Musicians Charitable Remainder Unitrust.” When I die, all of its assets will go to music education. But while I’m alive, it pays out 5% of its value per year to me.

(Note: 5% is the minimum allowed by law. It’s still too much. I would have preferred 1%, but oh well. I’m free to use it to start new businesses to help people, or whatever.)

The trust has 8.8M in assets. http://www.nonprofitfacts.com/WA/Independent-Musicians-Chari...

I really don't see a problem with 400k/year tbh, and if you believe him, 100k a year. And I wouldn't define "giving up the assets on death" as "keeping" either.

The dude says on interviews that he lives in a house with pretty much no furniture, and has an empty fridge. He himself knows it's fucking nuts and doesn't prescribe it to anyone. It's just his weird schtick and it seems to be genuine to me.

Could this be a huge act to play up a persona? Maybe. But the guy's been pretty consistent throughout the years and appears to practice what he preaches. Any interaction I've had with him has been totally consistent as well.

tradewarsonlyn• 6 years ago

Like anything else in life this piece has good parts and not-so-awesome parts.

My opinion: take the good and forget the rest.

If I can draw the line on what is enough for me, I can lead a life that is happier and free of divisive depression that comes from comparing myself to others.

tkiley5• 6 years ago

Derek's writing influenced me quite a bit in the early 2000s. I bootstrapped a software business from zero to near $10m in annualized revenue, and sold it almost half a decade ago. I contributed 100% of my equity into a charitable remainder trust because I learned about that idea from his website.

Since then, I've done a lot of "puttering". I'm teaching myself jazz guitar, and I'm currently enrolled in law school. I have basically unlimited time to read whatever interests me. If I could go back five years and give myself some advice, I would say that "enough" is not durably satisfying. Purpose is durably satisfying. Purpose arises from constraints. Having "enough" means you lack a particular type of constraint. Thus, enough" can get in the way of developing purpose, particularly if you are somewhat undisciplined like me.

(Also, I would abolish charitable remainder trusts from the tax code. I created one for lifestyle reasons not tax reasons, but after experiencing the tax consequences firsthand, I think they are profoundly unfair.)

cheez4• 6 years ago

What are the tax consequences that make it unfair?

skrebbel2• 6 years ago

Wow cool! For those of us who don't regularly create charitable remainder trusts, what are the tax consequences and why are they unfair?

tkiley5• 6 years ago

I had a bunch of equity in a startup that had a cost basis of, essentially, $0. Under normal circumstances, I would have sold this for $millions, and would have paid nearly 20% in capital gains taxes immediately.

Instead, I contributed my equity to a CRUT. I paid zero capital gains taxes at that moment, and the CRUT pays zero capital gains taxes ever. Also, because a contribution to the trust is a contribution in part to charity (with proportions calculated according to actuarial figures of my life expectancy), I got a charitable tax deduction of many million dollars which I was able to carry forward for many years.

Each year I owe taxes on the 5% which the CRUT distributes to me every year, but since this is capital gains income, it is taxed at a very low rate -- which is effectively reduced even further because it is offset by the charitable deduction which I have been able to carry forward.

The net effect is that I'm paying capital gains taxes in a tiny trickle over the remainder of my lifetime, and I also got a giant charitable deduction to offset those capital gains taxes. When I die, the principal in the trust goes to charity. The IRS will never get the kind of bite at this equity that I would intuitively expect it to get.

I don't understand how this capital gains tax loophole could be beneficial to society. I think it should be removed from the tax code.

Another side effect of the CRUT I hadn't anticipated: Occasionally, I note the intrusive thought that my continued life is the one and only barrier which is keeping a decent amount of capital from serving charitable purposes right now. That's honestly pretty depressing sometimes.

toast04• 6 years ago

I would abolish charitable remainder trusts from the tax code.

They've been reducing the scope of new trusts over time. When I looked into it around 2014, a young person couldn't actually make a lifetime income CRUT because the requirement for 5% distribution, and the low interest rates at the time made the actuarial calculations show a zero balance for the charity at the end, but you need to show at least 10% for the charity at the end. A fixed term just doesn't seem as good.

I ended up just paying federal cap gains and CA income on most of it, but I did donate some of the near $0 basis stock to a DAF, and sold a small portion of the equity after moving to WA. Some of that was QSBS which was nice, but having seen the 2001 stock market, leaving it undiversified to save on taxes didn't seem worth it.

pottertheotter2• 6 years ago

They reduced the scope of new ones but leave old ones alone? Seems like it should apply to all or none.

tw043• 6 years ago

"I became rich when I earned more than I spent" are words spoken by a rich man with 0 self awareness. I can tell you the second my life became infinitely less stressful: when I paid off my student loans.

I too spent almost no money, went on almost no trips, and lived way, way below my means to make it happen in my 20s. It turns out as my income has increased my happiness has increased - and I'd agree with all the studies of once you cross a certain threshold in the 6-figure range that more money means "less". Generally it just means: I have nicer versions of the same things.

All that is to say: I sure as hell wasn't "rich" when I was making more than I owed each month, not even close. And I don't believe for a SECOND Derek would be happy going back to living in a flat with 3 other people, eating peanut butter sandwiches 3 days a week but "making more than he spends", which is what he implies.

Derek: there are people out there who are in their 50s who would still have to live with 3 other people and eat peanut butter sandwiches 5 days a week to earn more than they spend. THAT'S THE POINT. Maybe if I make $90k/month some day I'll also be blind to the reality of the common man, but I can still see it from this little perch I'm sitting on at the bottom of the mountain.

johnpaulkiser2• 6 years ago

I think it is noble to preach being rich in the moment. I think for Derek quitting his job in his 20s to play music full time was for sure a mark of affluence in his social circle at the time.

gamechangr• 6 years ago

There should be some qualification, like "once you earn above $100,000, then you become rich when you earn more than you spend". Even that wouldn't be quite right for many expensive cities.

pricci• 6 years ago

Just listened to this episode in [The Knowledge Project with Shane Parrish] podcast.

#88 Derek Sivers: Innovation Versus Imitation

mcaswell• 6 years ago

That #10.5 point really resonates with me. Especially now with all of this isolation, it’s become very apparent that almost all communication on the internet is the screaming from inside the car type instead of the real human connection type. I made https://otherrs.com/ as an experiment to see if I could drum up more of that second type

simonebrunozzi3• 6 years ago

now living in New Zealand

Derek does not live in New Zealand anymore. He moved to England some time ago (perhaps 1 or 1.5 years ago?)

loktarogar• 6 years ago

According to his website he moved back to New Zealand this year.

simonebrunozzi3• 6 years ago

Ouch, missed it. My bad.

sivers• 6 years ago

It's weird to come to my favorite forum, and see my name in the title of a post.

It's weirder to read comments claiming to know about my personal life and motivations, though they're all wrong. (Both the good and the bad.)

The public me is not me - https://sivers.org/publicu - so I don't feel a great need to correct the errors here.

But thanks (tw04, lukego, marcinzm, s_a_p) for the reminder that anything I do can be spun negative.

jraby3• 6 years ago

There are so few famous people online that have been so giving with their time, willing to reply to every email.

I think your (public) actions speak volumes about who you are.

Your writing (and also whenever you’re interviewed on a podcast) has had a huge positive impact on me. I appreciate it and you (or at least the public persona of you).

Derek Sivers and the Art of Enough

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