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What Is An FU Fund & How To Build One

FU funds grant you the ability to walk away from situations that no longer serve you—without the stress of finances. Read on to learn more about what FU funds are and how you can start funding your own account

FU Funds: What They Are And How To Build Them

Imagine this: you have been working at a stable place over the last few years. You have benefits, a consistent salary, and you get along with your team. Under the pandemic, however, the conditions of your work changed, and you are no longer happy. In fact, you want to pivot careers entirely.

This is what Gianni LaTange, creator of First Gen Money Musings, did. When Gianni made the realization that she was no longer happy, she began to build her FU fund—a “f*ck you” fund. This account allowed her the freedom to quit her stable job in the middle of a pandemic, enroll in a coding bootcamp, and fully transition into the tech industry.

So what’s an FU Fund?

What Is An FU Fund?

An FU Fund is a savings account funded with money that allows you the freedom of choice. It is called an FU fund for a reason—with FU money, you can say “f*ck you” to anything that does not fit into your current life or is bringing you stress.

FU Funds vs Emergency Funds

The main similarity is that both of these accounts are savings funds. The key difference is that an emergency is generally for unplanned events, or emergencies. It should cover your basic expenses for about six months. These expenses would include:

  • Rent
  • Utilities
  • Groceries
  • Transportation costs
  • Loan payments

and any other fixed expenses you have on a monthly basis.

An FU fund, however, is responsible for not only your basic expenses, but also the lifestyle you’d want to have for a desired period of time. Let’s consider an example: a job loss.

Job Loss + Emergency Fund

If you experienced a job loss, the timeline you’d have to find another job would be the number of months your emergency fund can sustain your basic living expenses for. So if your emergency fund only covers 4 months of basic living expenses, you’d have four months or less to find another source of income to replace your old job.

Job Loss + FU Fund

With an FU fund, your next steps after a job loss do not immediately have to be to look for another job. With this FU fund, you have the choice to decide what you want to do. That could be looking for a new job, taking some time off to travel, investing in learning a new skill, using this as a chance to pivot careers. So long as you consider your desired timeline within the context of your FU fund, you have freedom of choice.

Why Should I Build My FU Fund?

Anyone and everyone should build their FU fund. With the pandemic, one in four Americans have considered quitting their job. Perhaps they don’t all hate their current job; maybe they are just looking for a change. Regardless, having an FU fund would allow them to take the time to explore these alternatives.

With an FU fund, you can:

You are no longer dependent on your source of income; you have enough to sustain you, and then some.

How Do I Save For My FU Fund?

In any case, saving for your FU fund will not be much different than any other type of saving. The difference? The intention behind saving; your why.

1. Budgeting

Like any other savings account, a good idea could be to start budgeting. This means being clear about what your cash flow is, what your expenses are, and ensuring your spending allows you room to still be able to save. There are several ways to budget, but key to building an FU fund will be to remain consistent with saving either each paycheck or each month.

2. Investing

If you intend to wait several years before using your FU fund, you can consider leveraging the stock market as a place for you to save for an FU fund. Going this route will enable you to not only save money on a consistent basis, but can also bring you returns on your investments, thereby growing your FU fund at a faster pace. Note that retirement accounts like a 401(k) or an IRA will “lock” up your money until you retire, so plan your accounts accordingly. Your other option is a brokerage account.

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