You may have heard sermons about ‘saving up’ from your folks a million times before, but probably paid little heed to it.
You may have heard sermons about ‘saving up’ from your folks a million times before, but probably paid little heed to it. Now writer Paulette Perhach wants you to take stock of your savings seriously. In a post titled “A Story of a F**k Off Fund,” she introduced the concept of “financial self-defense”. How’s this fund different from your other savings, you ask Paulette writes that this emergency fund should be enough to cover your frugal expenses for at least six months — if and when you need to get out of an abusive relationship, job or an apartment. So you don’t have to endure a bad phase solely for the lack of funds.
Theatre actress Divya Palat believes it is important to stash away for days when the going gets tough. She says, “Being a banker’s daughter, I have been financially aware from a very young age. Still, there are times when I could use a F**k Off Fund. Since I have had multiple sclerosis in the past, I have kept aside some money, just in case I need a quick medical pick up. I have previously used up emergency money, and I am sure, there will be unforeseen cases where I might need it. I think everybody should invest in a f**k off fund!”
Archana Puran Singh states that if a fund like this will help an individual get out of a bad relationship sooner than later, then it is a welcome step. She says, “I think even men should think about such a fund, since most invest in joint accounts that are shared. Money should never be a factor to stay in a relationship. If the marriage doesn’t work out for whatever reason, then it is good that he/she can get out of it sooner. This will help the individual recover from a bad patch much quickly.”
Abhishek Gupta, founder and CEO at Moat Wealth Advisors emphasises that individuals, especially who work in a “volatile” industry, need to start saving right away. He says, “Every woman has a different take on how much she would want to save for marriage, kids, and ageing parents, etc. She will need to chart out a plan as to how she decides to save money for these responsibilities. She can opt for an SIP (Systematic Investment Plan) in liquid fund. Or if you need for money on an emergency basis, if the markets are hitting new highs, you could sell your equity holdings against the value. Depending on the kind of job stability, he/she should have enough resources for at least six months. This is important for working individuals especially in financial services or any volatile industry, where you never know when you can be without a job.”
Abhishek does the math for us. He adds, “If one is spending Rs 1 lakh per month, then one needs at least a corpus of Rs 6 lakhs which will easily suffice for the next six months. Your sabbatical or job change should not affect your plan for other long-term goals such as retirement, child education etc. You also need to make a provision for the investments you would be doing for the six months when there is no income.”
Author Ira Trivedi adds that a fund like this will help women get financially independent in every sense of the term. She says, “A woman shouldn't have to give up on her lifestyle because of unforeseen circumstances. Financial independence is important, but what's even more important is to make sure that you aren't living from paycheck to paycheck.”
