When life throws you lemons, you can make lemonade, or you can simply toss the lemons aside and give them the finger. Whether you’re dealing with a dead-end job, an unhealthy relationship, or any other challenging situation, having a bit of extra money stashed away can be just the thing that helps you leave a sticky (…or sour) situation. Enter: the F*ck You Fund.
What’s a F*ck You Fund?
A F*ck You Fund (FU Fund) is an emergency stash of money that allows you to leave a bad situation without financial dependency.
Your FU Fund is the buffer you can rely on when you are laid off or want to quit a toxic work environment, leave an unhealthy relationship, take a short career break to travel, or finally give that business idea a chance and try your hand at entrepreneurship.
Whatever the reason—whether to save yourself or to make a change to live a life that looks more like you—a FU Fund is that extra, thick cushion that has your back if you fall or take a leap into the unknown. A FU fund provides you:
- Peace of mind – Having an FU Fund brings significant psychological empowerment and peace of mind. Knowing you have the financial means to leave a harmful situation reduces stress and anxiety, allowing you to make decisions based on what is best for your well-being rather than out of financial necessity.
- A ticket to freedom – An FU Fund provides the freedom to leave toxic work environments or pursue better opportunities without the fear of financial instability. It allows you to prioritize your mental health and job satisfaction, ensuring you are not trapped in a job that drains you.
- Opportunity for personal and professional growth – The role of a FU Fund in empowering women to start their own businesses or take career risks cannot be overstated. It offers the financial security needed to explore new ventures, take calculated risks, and invest in personal and professional growth. This fund can be the foundation for significant achievements and fulfilling endeavors, helping you to design a life aligned with your values and goals.
…So it’s like an emergency fund?
Not quite. An emergency fund is a reserve of money specifically set aside for unexpected expenses such as car repairs, replacing a broken washing machine, or paying an expensive medical or vet bill. A F*ck You Fund is your ticket to freedom from a bad situation. It is your financial safeguard, ensuring you don’t have to worry about covering your bills for the next several months in case you lose your job, forexample.
How to Build Your F*ck You Fund
To get the most out of your financial buffer, a F*ck You Fund should cover your living expenses for at least six months, though more might be necessary depending on what gives you peace of mind. Calculate your average monthly expenses, including all necessary costs such as rent/mortgage, bills and utilities, food, etc. Multiply this amount by six (or the number of months that feels right for you) to determine the total amount for your financial cushion.
How to save for an FU Fund?
Sufficient planning and budgeting are crucial to building an FU fund. There are many ways to approach budgeting, but the key is to stay consistent until you reach your savings goal. My go-to budgeting tool is the 50/30/20 method, which is a helpful guideline to follow for achieving your financial goals.
In the 50/30/20 method, the goal is to allocate your income as efficiently as possible;
- 50% for Needs: Allocate 50% of your take-home pay to cover basic needs such as rent, bills, utilities, and food.
- 30% for Wants: Use 30% for discretionary spending on things like clothes, hobbies, and subscriptions.
- 20% for Savings and Investments: Dedicate the remaining 20% to your future. This includes saving in a high-yield savings account or investing in stocks, ETFs, and mutual funds. A portion of this should be allocated specifically to your FU Fund.
A good place to start budgeting, is to conduct a financial audit of your monthly expenses and see if there are any areas where you can save money. A financial audit helps you to locate and cancel any unused subscriptions you may have forgotten about, for example.
Where to store your FU fund?
Now you have an idea of what an FU fund is, its importance, and how you can begin to build one, but one important question remains: Where should you store this money in a safe way? And yes, we mean protecting it from those sudden 1 a.m. emotional shopping splurges. 😉
Your FU money should be separate from your daily bank account yet still easily accessible when an actual emergency arises. With your FU fund, you want to practice a “set it and forget it” mindset. This is best so you don’t feel the temptation to withdraw money on a whim.
Here are three places where you could consider storing your FU fund:
- High-yield savings account – Offers a higher interest rate than traditional savings accounts, allowing your money to grow steadily while remaining easily accessible.
- Brokerage account – Can help your money grow more significantly, but it carries the risk of losing value during market downturns.
- Traditional bank account – Easy to access and manage, but the interest rate is typically low and may not keep up with inflation.
Where you choose to store your FU Fund largely depends on your risk tolerance, the timeline you’re saving for, and how quickly you want to have access to your FU Fund should the need arise. Choose the option that best aligns with your financial goals and personal circumstances.
Your ticket to financial freedom
Ultimately, there’s nothing quite as empowering as saying ‘no’ to things that no longer serve you. A F*ck You Fund gives you the freedom to do just that, providing the financial independence and security to make choices that are best for you.
A marketing professional in tech by day, Lilli finds a creative release in exploring and writing about her perfectly imperfect human experience on muija. With heart and soul, she is learning how to navigate this life, and in sharing her stories Lilli hopes to inspire others to follow their curiosity, too.
