Why You Need An F-You Fund

Top stress sources for South African women? Poverty and social inequality, according to the Ipsos ‘What Worries the World’ 2018 survey. More specifically, it’s not having enough money to avoid poverty. According to a 10X Investments survey, only 35% of South African Millennials are saving for the long term.

- 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.