I previously blogged about Financial Planning on how I can be financially free. I would like to follow up on this to talk about the “F*ck Off Fund (FOF)”. FOF is basically savings that you have over the months or years on your income for rainy days. Basically a fund that you’ve allocated in your bank account for the day when you can’t stand your job anymore and decided to quit abruptly without securing your next job.
I don’t come from a wealthy family. Nor do I have a rich husband that will finance my lifestyle and allow me to be a “full time homemaker”. I have bills to pay, just like everyone else. I have responsibility to support my parents with my monthly contributions (it’s an Asian thing to provide for your folks and I’m glad to do it). I have an expensive shopping addiction with sky high credit card debts.
With all these expenses that we all have, how do we get out from the rat race? People go to work, sometimes in jobs that we don’t enjoy. I don’t belong in that clan. I belong to the group who MUST love their job. I have been thankful that all my work in the past, I enjoy. I have not done a single job where I hate going to work everyday, unmotivated and only stayed because of the paycheck. That is not me. I am passionate about what I do and loved every moment of it. I believe that if you love your job, you can make a difference, make things better and make money out of it because of your passion and constant need to improve yourself, your work and your organization.
However, there are times when you reach a point where you no longer like what you do and want to move on. Or maybe it’s someone you no longer get along in the company who’s making it difficult for you to continue working there. Or because you get a better offer or think you can gain more by moving on. Whatever the reason for leaving your current job, sometimes you want to do it immediately. Sometimes, some people might just reach a breaking point in their work that they want to quit. Just like that!
This also works for “homemakers” who are surviving on their spouses’ monthly income. The breadwinner contributes money to you for monthly household expenses. You sneakily try to stash a little of this money away monthly. In the event that things don’t work out in the marriage (touch wood), you have your own FOF to live by, including the alimony (if you have any) until you find your next spouse again. 😛 Bad analogy, I know.
If you get to a point of just wanting to leave your job / spouse (hence the definition of “F*ck Off”), then you need this F*ck Off Fund in place. This is a fund that you should maintain in your bank account that should be able to sustain you in your unemployment period. A sum of money that can tie you in for the next few months until you find your next job. Better yet, if you’ve been diligently saving for a lifetime, this could be your ticket to financial freedom, where you can have an early retirement and don’t even have to think of going back to work.
Whatever your FOF is for, how much is enough to be a solid amount? What’s your lifestyle like? What is your bare minimum that you need to survive monthly? If you can work this out, then theoretically, anything more than this amount from your monthly income should be contributed to the FOF monthly.
FOF should be a lifelong commitment. Even if you’re no longer working, this can serve as your Retirement Fund. This is when you flick your finger to the world and move to your dream retirement location (wherever in the world) and enjoy your freedom to do whatever you want. In order for this to be a healthy retirement fund though, stashing away little by little every month, even for your whole working life, might not be enough for you to retire in. You need to look at other investments on stocks, bonds, real estate, etc to maintain a steady income, even in retirement.
So my question to you all is – do you have a F*ck Off Fund of your own. If so, how are you doing with it? Is it good for a few months, years or can you retire with it?