FU money is something you’ve heard about, but what it means to me differs from what it means to you. Depending on your current situation, perhaps your age or outstanding debts or obligations, it can mean different things to different people. What most people think about FU money is having so much money that they can go into their boss’s office and pee on their desks. They can be like, “Yo, I’m done! I’m out!” That’s what a lot of people think it means. But for me, it means something very different- a comfort level.
For you, it could be enough money to survive if you lose your job. Sure, you may need to go on a strict budget, but with this money, you’d survive and overcome the job loss. This FU money is security. Another way of thinking of FU money is the amount of money necessary to get out of a stressful situation. Perhaps that amount may be savings for a year so you can get into a new career or field without jeprodizing your lifestyle. You would be able to quit on your terms.
My challenge to you is this: what is your number? Make sure your number is realistic because it should be the amount of money that you don’t have to worry or think about money if you lose your job for a few months. Work towards that goal. The pressure and the power that the poor have over somebody are unbelievable. It’s stifling. It’s incredible what can happen once you take that off the table.
It’s critical for you to stop using all the brain power and bandwidth that is currently being used, worrying about money. Once you take that off the table, it’s powerful. You may need to start living below your means or doing whatever you need to hit that number. You will be able to do more incredible things and think more creatively. You won’t be stressed all the time about money.
No matter your number, you need to consider delayed gratification. Do you really need what you are purchasing or want it? Identify the difference between a need and a want. We often think we need something when the truth is we could do without it. But there’s nothing wrong with treating yourself if you can afford it. Refrain from buying things on credit because that will slow your growth toward your FU number.
Is debt for you? I don’t believe in debt. Because I filed for bankruptcy, the burden and stress about money were so powerful a pressure that having debt is now unbelievable for me. Bankruptcy was a clean start after my business, and I had accumulated $500,000 of business and personal debt. After that, I didn’t do anything I couldn’t afford. I am very debt adverse. I own real estate, but I pay cash. If I can’t afford it, I don’t do it. This doesn’t mean that that’s the correct answer for you.
I don’t consider myself a greedy person. Still, one of the ways that you can measure success is through growth, topline numbers, and personal wealth. I am always trying to improve on these. If you’re not moving forward, you’re moving backward. Every single one of us is one or two bad decisions, from being broke or in jail.
When determining your FU money number, a bottom line consideration is where you could quit and be fine for a few years without too much concern. That way, you would have time to go to school or business a brand/business. You would be able to transition without too much negative impact. You could exit your current company or field without worrying about money.
You’ll need to adjust it when you hit your number. I remember when I had my first $100,000 in the bank. It was mind-blowing. I felt like the richest dude in the world. I’d be stressed out if I had $100,000 in the bank now because that’s insufficient. It’s not my number. When I started to make more, my expenses increased. My personal number now is 5 million. Starting at this age, $5 million in cash or assets allows me to live 110 years. I don’t have crazy ridiculous expenses, though. I would live comfortably if I had $150,000 a year and didn’t have these businesses. My wife would continue to work, and we would be fine.
The next level of FU money is where power comes into play. Money is no longer an issue at this level, and you can indeterminately live a chill and enjoyable lifestyle. You would no longer need to work and could walk away anytime. Now, the last level of FU money is where you could burn every single professional bridge and end your career with an absurd amount of money. This level seems out of reach, but if you won the lottery, here you are.
I have bled, worked, strived, and given every ounce of my being to figure this out. I have figured some things out and want them to stay. I am ultra-aware of what it looks like on the other side because that is where I came from. I grew up poor and had businesses fail, and I’m not interested in doing any of that again. I won’t take risks, so my moves are calculated.
Just remember that FU money is not a dollar amount. It’s a comfort level. Perhaps it’s the amount of money you’d need never to work again or to walk away from a crappy job with no backup plan. Your number may be much lower than others — or much higher. Regardless, it can be one of the most valuable aspects of your life, especially if you feel shackled by an employer, debt, or other financial burdens. FU money can be priceless.
