A few years ago I had a potential client that I had been working on attaining for many months. With sales thats how it goes sometimes, you have to build a pre-working relationship before a working relationship is established. Anyway, I’d finally got the potential client to commit to a scheduled talk regarding their business needs and I was super excited. On the day of our meeting I was informed by the potential client that someone had contacted them from our office and had begun working on their business needs. Imagine my disappointment. Now imagine how furious I was when the Owner said there was nothing she could do. The owner had known of my talks with the client so I was left flabbergasted. Angry because of wages that I knew I was going to lose. If I had Fuck You money I would have quit that day. But instead I was chained in place because I had not taken the time to build an emergency fund.
What is F-You money? Ideally, F-You money is a few years worth of income that is consistently being added to and that sits untouched in a high interest savings account. F-You money is used whenever you want to leave that job to follow your dreams or whenever you want to leave a job to find a better one. However for most of us F-You money seems to be a dream, an unattainable goal that seems out of touch with the reality of our financial obligations but believe it or not it is absolutely possible to build your own personal stash of F-You money as long as you currently make enough money to cover monthly expenses and have SOMETHING left that you can save. With a will there is always a way and if you use a little creativity in your effort you can easily save in the minimum $100 monthly. Even if it takes a year for you to save $1,000, at least you have more than what you had before. Progress is progress whether you are where you want to be exactly and the point is that you actually made an effort to save and that gives you a self-esteem boost that you can thank me for later.
Just saving cash however is for dummies because you can’t sit back and make your money work for you. When you put your money in a high interest savings account you earn money back based on the amount of money you invested into the account. If for example you have $5,000 invested into a savings account with a 5% annual interest rate, your return would be $250 minus the fees associated with your account. You won’t get rich like this but you will over time build an nest egg that can be used to make other investments to further build your nest egg of security.
The tricky part of course is finding a great account that makes your money work for you and this is where creativity comes into play. I searched www.bankrate.com to find a great rate and found dismal rates ranging from 0.01% interest rates to .99% percent interest rates, all bleh rates for me and honestly I was quite disappointed when I found these numbers but I continued to research for higher rates. Oddly enough PayPal Prepaid MasterCard’s offer a decent annual interest rate of 5.0% on balances up to $5,000.
Finally, odd as it may seem, prepaid debit cards offer some of the top rates available today. Generally there are two limitations. First, cardholders must be signed up for direct deposit to qualify for the savings account. Second, balances subject to the top rates are limited, typically to about $5,000. For those that accept these limitations, the interest rates are hard to beat.
For example, the PayPal Prepaid MasterCard MA -0.55% offers 5.00% APY on balances up to $5,000. The Mango prepaid card does even better. It currently offers 6.0% APY on balances up to $5,000. Money placed in these accounts typically is FDIC-insured, although it is important to confirm the coverage before opening an account.
In short, it is never too late to start building your stash. The point is to start today, when you are sitting on $10,000 at your disposal you will feel less chained to situations that do make you happy or allow you to live out your dreams. Currently I save all of my change and manage to put 50% of my income away every month. While my F-you stash does not make me rich, it gives me a freedom and peace of mind that I’d never felt in the past. I look forward to one day using the freedom of my stash to live out my dreams of being able to live stress free without the chains of modern 9-5 corporate America.
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