Why You Need An F-You Fund

- Jessica Goodman

Worrying about this sitch is warranted, says Sallie Krawcheck, founder and CEO of Ellevest, a digital investment platform for women. Having no cash cache doesn’t just threaten your retirement – it can also put your wellbeing at risk right now.

Let’s say, for example, that your boss is a monster and work has become unbearable, affecting your mental health and relationships; or that your partner is borderline emotionally abusive, and you’re desperate to move out and get your own place. Without a financial cushion, you may feel stuck in these scenarios. That’s why you need an f-you fund, says Krawcheck. You know: the smart woman’s fall-back stash (a twist on the term popularised on Paulette Perhach’s site Fuckofffund.com).

‘Think of it as your “Take this job and shove it!” fund, your “I’m in a relationship I don’t want to be in” fund, or your “My roommate is scary-awful!” fund,’ Krawcheck says. Saving money every month may seem like a stretch – especially if you’re living paycheque to paycheque, buried under piles of debt or supporting others – but it’s better to start small now (even with R200 per paycheque) than never to start.