For Financial Freedom, You Need a “Fuck Off” Fund

What is a “Fuck Off” fund?

It is a sum of money that you have set aside that allows you to tell anyone or anything to fuck off so you can move on with your life. This can be a boss, a relationship partner, or a dead-end job or career that sucks in a hundred different ways.

The “fuck off” fund is your line of defense in the life game of hard knocks. More importantly, it’s one of the smart financial decisions to be made that will lead you to financial freedom and independence.

Let’s take a look at the steps needed to start your own “Fuck Off” fund:

  • Sit down calculate how much money you need each month to survive and to live a reasonably satisfied life. The fewer new cars, new smart phones and luxury vacations that are on the list, the less you need to spend for your financial freedom and independence.
  • Track your actual spending for three months so you get an accurate picture of your actual expenses.
  • Make a realistic budget that is doable … not a pie-in-the-sky budget.
  • Set up a designated savings account that isn’t tied to your checking account … or even at the same bank or credit union. This savings account will be out of sight so you won’t be tempted to withdraw from it. You want to accumulate enough to cover your budgeted expenses for six months. Once you have this amount saved, you can start investing money to grow your money for your future financial independence.
  • Set up automatic deposits to this savings account. Pay yourself first from every deposited paycheck.

Setting goals for your “Fuck Off” fund will keep you motivated and excited. Look at this example of a progressive goal using levels of achievement:

Level 1

  • Six months worth of living expenses (Emergency Fund)

Level 2

  • At least 8 months worth of living expenses
  • Debt-free

Level 3

  • At least 1 year’s worth of living expenses
  • Debt-free

Level 4

  • At least 12 months worth of living expenses
  • Debt-free
  • Plus enough to travel and live abroad to do the work you are passionate about

Level 5

  • You have achieved lifetime financial independence.

You have no debt and are receiving enough monthly income from savings and investments that you do not actually need to work. You should note that less than 1% of the population in developed countries achieve this level of financial independence and freedom.

You’ll notice there is no age criteria. The sooner you start, the sooner you’ll achieve financial freedom. There are no shortcuts. You must:

  • Maximize income
  • Live frugally
  • Abhor debt
  • Save and invest frequently and faithfully

You’ll never be in a position to tell the world to fuck off unless you have achieved lifetime financial freedom and independence.

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Published by W. M. Brown

I am a retired U.S. expat living in Ecuador. I was a business owner for 32 years before retiring in 2012.

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