Ask yourselves whether you have this fall back option where you can be self sustaining even in the absence of whatever regular income you are used to. Kavita speaks about the “Fuck Off Fund” or the “Six Month Reserve Fund”.
The video is about the F word but not in a sense that is insulting or sounds profane. The guest encourages financial backup that every woman needs for rainy days. According to Kavita Choudhary Jhunjhunwala, the fuck off fund is money set aside to sustain yourself during a financial crisis. The motivation is to live comfortably for 6 months if you were to suddenly experience income loss. In addition, even if you have a financial provider, saving is necessary because tomorrow is not promised. What happens when you lose the source of income or your financial provider can’t provide anymore?
The words are take off from the story written by Paulette Perhach
The dynamics of the comfortable life sometimes change. People experience bankruptcy, divorce or death of financial provider. In the case of a financial crisis, people find themselves trapped in uncomfortable situations they would rather escape. You may be stuck in a job or career you don’t want due to lack of savings. Learn more about personal finance from the wealth series
A business needs working capital to sustain itself during trying times said Kavita Choudhary Jhunjhunwala. People also need at least 6 months “emotional working capital” in the case of an unexpected loss of income. Should you experience a financial crisis would you live comfortably for 6 months? This is the question you need to ask yourself to set up a fuck off fund.
The fuck off fund provides financial freedom and safety during an emergency or rainy days. Her emergency fund became handy during the financial crisis of her own. She explains that to set up an emergency fund, you don’t have to compromise and live uncomfortably. It requires proper planning, financial management and maybe seeking out help from someone who is financially savvy.