What is FU Money?
I am sure there are many meanings to FU Money, but the first definition I learned was ‘f..u..k y…u’ Money. Basically it is cash you have saved after everything else (all expenses and savings) are put aside. A mentor (RIP Barry) once told me I needed to have this account for whatever I wanted it for, but it had to be used for FUN (this is another definition for FU Money). He said, this would keep you hungry in your business and allow you to celebrate without any strings or emotion attached to it.
This is money that is in addition to your emergency fund. It is not your retirement savings or your kids education fund. It should be money that no one in your family will miss. For me, this means this cash is in addition to our car savings account (to use to pay cash for our family vehicles), family vacation account, alternate investment account (real estate) and anything else you save money for a specific purpose. It is last on the list and some months you may not contribute to it.
I will push money into a separate account at the end of each month if there is anything left. I can tell you, once you have some success and your finances are in order you may find your motivation wanes a bit. It’s normal. But, if you have a goal for something that is impractical and depreciating, it can help motivate you! It sounds strange, but it works.
If you are ‘bad debt-free’, then begin saving in your FU account. Even if you don’t follow through with that frivolous purchase the journey will be fun and motivating.
Guilt-free spending. “You deserve it,” a cliche that most money bloggers hate to hear.
Do you have an FU account?