Why am I really saving and investing all this money? It’s all about the “F-You money”.
If you’re still stuck on the notion of retirement equals never working another day in your life and don’t understand why you might want to save and invest as much of your income as you can than this post just might wake you up to what it’s really all about.
Why you need F-You money.
I understood the concept before I ever heard the phrase “F-You money”. When I was a kid I worked small time jobs, I did oil and tire changes, maintained fork lifts, sold car and motorcycle parts, worked on small engines and worked at a computer repair shop. Many of these jobs were during my college years when I went through 3 different colleges. At the time I didn’t need much money, my parents gave me a roof over my head, food in the fridge and paid for my car insurance. I just had to find money for tuition (usually covered by low cost student loans), gas and basic maintenance my car (I did all oil changes and repairs myself). These odd jobs and my love of computers gave me a fairly wide range of skill set. Eventually I got tired of the odd jobs that paid $8 to $12 an hour and did freelance computer work for $30 to $50 an hour. Not a lot of money but enough to cover my expenses and I was able to help out people with their computer issues at low cost. At that time my cost of living was so low the amount of “F-You money” I needed was virtually non existent. I quit the computer repair company and did the occasional freelance computer job. Less hours for the same money and I loved the freedom and control of my working hours. it’s a very addicting freedom. Having $1000 of “F-You money” in the bank gave me the confidence to tell my boss off, quit and work for myself.
How much is enough F-You money?
My interpretation of “F-You money” is when you have enough money to give you the confidence to tell your boss off or change career directions without worrying about the financial hit it may cause. Since confidence is a subjective thing this number is totally dependent on the person. A friend of mine has this confidence while having next to no savings, His “F-You money” was his confidence that he can find another job tomorrow. Some people never have that confidence even after they’re already financially independent and beyond the 4% rule.
That type of confidence F-You money can give you will allow you to ask for a 3 day work week when you need more time at home, change careers all together, start up a tiny company or maybe just quit and freelance occasional work like I did. It’s not usually enough money that you’re set for life and no longer need any income but it’s enough money that you’re not worried about your income.
The amount of money I probably need before I start having that kind of confidence is probably the point at which I have enough saved that I can let the market run away with getting me to financial independence in maybe 10 years while all I have to do is cover my expenses, which is very low. this cash amount for me is probably around $300,000 to $400,000 and will be re-evaluated periodically. Since it’s based on your current financial condition, expenses and just where you are in life I may actually feel that confidence after $100,000 or $200,000 if life is going my way at that time.
I haven’t decided what I want to do with my F-You money and won’t know until I get to that point. I do want more control of my work hours and I would like to work only 3 or 4 days per week. The rest of my hours I want to dedicate to working on my house, building web-apps, other various projects and my many hobbies. I may even try to start a small company as long as it’s designed to be one man operated and I can walk away easily at any time. I could also see myself being contract help to some of my previous employers. It will certainly be something that gives me more freedom to move around in my personal and professional life.
What would you do with your F-You Money? Would you travel more? Spend more time with family? Comment and discuss!