Blog | Personal Finance

Why You Need a Future Fund, not an F-Off Fund

True power and freedom comes with financial intelligence

Have you heard about the "F-Off Fund" concept that's been making the rounds on the Internet lately?

If not, you can easily catch up by reading a couple articles here, here, and here (warning, h3 language!).

Essentially, the "F-Off Fund" is the amount of money you'd need to leave an abusive situation, which many women unfortunately find themselves in.

In her Medium article , Paulette Perhach writes about a scenario where a hypothetical boss sexually harasses a hypothetical you:

A few weeks later, your boss calls a one-on-one in his office, walks up behind you, and stands too close. His breath fogs your neck. His hand crawls up your new dress. You squirm away. He says, "Sorry, I thought…"

You know what to do. You're just shocked to find you're not doing it. You are not telling him to [f-off]. You are not storming out. All you're doing is math. You have $159 in the bank and your car payment and your maxed out credit cards and you'll die before you ask your dad for a loan again and it all equals one thought: I need this job.

Perhach later writes about a better story where "you" have "$1,000, $2,000, $3,000, then enough to live half a year without anyone else's help." That, she says, is a "better story."

The limitations of an "F-Off Fund"

I commend the spirit behind Perhach and others encouraging women to take steps to financial independence. All women should be financially free enough to leave a bad situation. But I also think that an "F-Off Fund" is only half of what it takes to be truly financially independent as a woman.

Let's face it, a few thousand dollars is a bandage. While it will get you out of one abusive situation, it won't necessarily prevent the next one or put you in a position to never have to be in one again.

True financial independence means understanding how money and investing work, and building a portfolio of assets that create constant cash flow, not having to drain your savings to avoid abuse.

To that end, Rich Woman has worked for years to teach women the principles necessary to be financially literate and financially free.

In Perhach's hypothetical story, the very reason "you" are not free to walk away from abuse has to do with poor financial habits, including spending money and free time on liabilities-eating out, new clothes, IKEA furniture-not assets.

Having a few thousand dollars saved up won't change these habits, and eventually women who persist in them find themselves in the same cycles of dependence.

Don't just leave, move up and on

But perhaps most damaging about the "F-Off Fund" mindset is that it's entirely focused on escaping from rather than moving towards.

Don't get me wrong here. It's important to be financially free enough to escape the horrible situations we sometimes find ourselves in. But the more sustainable solution is to build a plan for your future that involves complete financial independence.

Now is the time to begin not just an "F-Off Fund" but rather a "Future Fund". The Future Fund is a step beyond an escape hatch. It's a financial fortress. It allows you to build a future where you'll never need to tap into savings or quit a job. It's a financial future where you're in control from the get-go and completely free.

Build a Future Fund

How do you build a Future Fund?

It starts with financial education. Learn how money works. Learn how to invest in assets that provide cash flow. Learn how to start and run your own business, either full-time or on the side.

Then, each month, put money aside not just to save but instead to invest. And do it faithfully, no matter what.

These skills and actions will serve you much better than a few thousand in the savings account.

Better yet, they'll give you the self-confidence to hopefully surround yourself with positive, wonderful people to whom you'll never have to say, "F-Off."

Take control of your finances, and start your Future Fund today.