What does the term fuck you money mean, i.e. how many figures is it? Well, that all depends on what your definition of FU money is. For some, it might be a million dollars. For others, it might be much less. But one thing is for sure: f-you money is what you need to quit your job and never look back!
In this blog post, we will explore what FU money is, how much you need to achieve it, and how to go about getting it for yourself!
Fuck You Money Definition
F-you money is owned by people who are completely financially independent. i.e., they don’t rely on their jobs because they have enough money to maintain the desired lifestyle.
So, no, you won’t literally say, F*** you to someone. You’ll just be in a position of financial stability.
Although we don’t know the term’s origin, it can often be found in pop culture. If you’re a movie enthusiast, you probably remember John Goodman quoting it in The Gambler, while bookworms might remember it from Earl Wilson’s book The Show Business Nobody Knows.
That said, there are many benefits of FYM besides making you financially independent. In other words, you may be able to:
- Leave a toxic work environment
- Start your own business
- Travel the world
- Become a digital nomad
- Retire early.
But how do I get there, you might ask? By using the good old mathematical formula.
FU Money Formula
To find out how much FU money will be enough for you, you need to consider the following factors:
Calculate How Much Money Would You Need to Save
What amount will cover your whole year without an income? Take notes on how much you are spending on rent, bills, groceries, etc., and multiply the number by 12 to get your yearly expenses.
For example, if you spend $50,000 per year, and you want your “fuck you money” to last for, let’s say, ten years, multiply 50,000 by 10, and you’ll get your FYM basis. In this case, you’ll need to save a minimum of $500,000.
Plus, don’t forget to add 10% on unexpected expenses and 2% on inflation.
Consider Your Location
Your location will have a significant influence on your FYM base. For some people, 40k per year will be enough to live comfortably, that is if they live in affordable states, such as Kansas, Arkansas, Indiana, or Tennessee.
Others might consider saving more money if they live in Hawaii, DC, or California, given that they are the most expensive states to live in.
On that note, you’ll need to create your own FU money spreadsheet to determine how much money and time you’ll need to invest.
How to Create an FYM Fund?
There are many ways to create an FYM fund:
Reduce Your Expenses
Did you know that Americans spend an average of $1,604 per year on clothing? If you’re one of them, you might want to reduce your spending habits if you want to create a good FYM base.
In short, cut all the unnecessary expenses you can live without, such as your Netflix subscription or eating out in fancy restaurants and put that money into your FYM fund.
Increase Your Annual Income
How much FYM do you need to live financially independently for at least ten years? $500,000, if you make $50,000 per year. However, if your income is much lower, let’s say, $30,000, you’ll need to find a side hustle or a way to make an additional passive income.
Pay Off Your Debts
How to make fuck you money if you’re drowning in debts? Now, this is a hard one. There are a couple of things you can do:
- Make a list of your debts
- Pick a debt repayment strategy
- Keep your spending in check.
Invest Your Cash
The easiest way to make some money on the side is to make smart investments. Many people made a fortune by investing in cryptocurrencies, such as Bitcoin. In fact, the stats show us there are about 100,000 Bitcoin millionaires in the world.
In addition, you can invest in other things, such as stocks, rentals, high-yield savings accounts, etc.
Most importantly, never put all of your FYM in savings and FIAT currencies. Invest your cash in various assets, like gold, real estate, crypto, or stocks to minimize your financial risk.
FU Money vs. Emergency Fund
What is fuck you money? Isn’t it the same thing as having an emergency fund? No, it’s not! Emergency funds are bank accounts that allow you to get money for unexpected expenses, like emergency plumbing, paying your medical bills, or having some cash while you’re in between jobs.
Emergency funds can last between 3 to 6 months, while FYM funds can last you for a whole year if you play your cards right.
FIRE vs. FU Money
The term FIRE or Financial Independence, Retire Early, is similar to the FYM in a sense it provides you with financial stability. However, with FIRE, you’ll be able to live comfortably for the rest of your life without having to work a single day as you’ll retire early. In other words, you’ll be living off of your savings and big smart investments.
Therefore, FYM is a short-term solution compared to the FIRE system.
So, how much money is fuck you money? John Goodman in The Gambler would say $2.5 million. However, this will depend entirely on you. The goal of FYM is to give you the freedom to take control of your finances so that you never have to depend on someone else for your livelihood again.
To sum up, financial freedom is within reach if you’re willing to put in the work.
What is money?
By definition, money is a medium of exchange that you use to obtain goods or services. There are five types of money: fiat, commodity, fiduciary, representative, and commercial bank money.
- Fiat money, such as banknotes and coins, is money whose value is based on an authoritative decision by the government.
- Commodity money (gold, salt, beads) is intrinsic, i.e., its value is based on its commodity.
- Representative money (certificates, paper money, token coins) has no value of its own, i.e., a commodity backs it.
- Fiduciary money (checks) can be exchanged for commodity money or fiat by the bank.
- Commercial bank money (funds in a checking account) is a debt-created currency by the bank.
How much FU money do you need to live comfortably?
It will depend on your lifestyle and location. For example, if you live in a more affordable state, like Arkansas, where the cost of living is 15% lower than the US average, and your FYM fund equals $40,000–$50,000, you’ll be able to live pretty comfortably.
At the same time, if you’re from New York, having a fund of $40,000 might not be enough to maintain a lavish life.
How to get fuck you money?
To create an FYM fund, you first need to save some cash. The easiest way to do it is to reduce your expenses.
For example, you can keep track of your spending habits. Spend 50% of your cash on the things you need, 30% on the things you want, and put 20% of your income on savings.
You can also increase your annual income, pay off your debts, and invest your money. All of these things can help you create a nice fuck you money fund for the future.