The roommate from hell. The toxic ex. The dead-end job. The creepy boss. Plenty of us know what it’s like to be stuck in a terrible situation and not have what you need to escape. We’re talking money, of course — money, also known as autonomy, power, the ability to walk away. 

Enter: The F*ck- You Fund. Allow us to explain.

What’s a F*ck-You Fund?

Once upon a time, way back in January 2016, writer Paulette Perhach published a piece on the personal finance website The Billfold (RIP) called “A Story of a F*ck Off Fund.” Naturally, it went viral.

Since then, the concept has also colloquially been referred to as “f*ck you money,” or, as we call it, a “F*ck-You Fund.” A F*ck-You Fund is a savings pot you build up specifically so you can walk away from the things that hurt you or hold you back, be they people or environments (or both). While there are plenty of reasons a vulnerable person wouldn’t be able to leave a bad situation, the idea is that nobody should be trapped or exposed to harm just because of money. A F*ck-You Fund is designed to eliminate the financial barrier from a person’s list of reasons.

Isn’t that just an emergency fund?

Yes and no. An emergency fund is for emergencies — as in something unexpected, like getting laid off, or getting slapped with a $10K vet bill. A F*ck-You Fund, by contrast, should be available even when it’s not an emergency.

If you want to save for both your emergency fund and your F*ck-You Fund in the same account, you could. But that’ll just mean it can’t be a bare-minimum amount (see: the lower end of the three to six months’ take-home pay range) — the more you save, the more confidence you can have going into any job or relationship or lease without having to worry about how you’ll get out, should you need to.

So how much should I save?

Start at the emergency fund threshold — three to six months’ worth of take-home pay, aka what you’d need to pay all your bills. If you’re self-employed, best to be extra-safe — go with nine months. If you’re not sure, think about it this way: What would you need to feel comfortable? How regular / stable is your income? Do you have a partner’s income to back you up, or are you holding down the fort yourself? How easily could you get another job (or freelance in the meantime) if you had to? 

Then add some. There’s no strict rule or formula to follow. Maybe you started with three months’ pay for your emergency fund — go to six months. Or maybe from five months’ to seven. Maybe you’d feel best with a full year of take-home pay.

Where should I save my F*ck-You Fund?

Since this is a savings goal you may need at a moment’s notice, we suggest keeping it, like any other type of emergency fund, in an account you can draw from at any time with minimal penalty. A high-yield savings account could be a good option. 

The one caveat here: While it may behoove you to save for other goals in an account you can’t see when you check your everyday balances, this one you might actually want to keep in an account that’s routinely visible. That’s because the whole point of a F*ck-You Fund is to know it’s there, to let that money pile comfort you, to know you can leave whenever you need to. If you put it in an account that isn’t in view all the time, you might be less inclined to wield it.

“F*ck You” is just the beginning

A F*ck-You Fund is powerful, but it’s just one of the tools on your journey to financial freedom. Zoom out, and this is all part of a bigger plan to set your future self up for security and success. Considering the pay, investing, and wealth gaps — and the fact that women live longer than men (74% of women die single) — it benefits us to save and invest as much, and as early, as we can.

At Ellevest, we can help you create a plan for your money that helps you hit your goals — and feel amazing in the meantime. And if you’re looking to dive deeper into your specific situation, booking time with a financial planner is one of the best things you can do for your future.