This is not a personal finance blog but we have to touch on an important subject. Everyone needs to maintain a respectable buffer of cash to maintain their bargaining power at a job. If your boss thinks you can’t afford to quit he can force you into an unreasonable work environment. If he knows you can afford to quit at any time with little consequence he is forced to respect you.
It is important for those with authority over you to remain aware of your Fuck You Money. Bosses rightly assume everyone is broke, at their beck and call. Be tactful but explicit. Even use the phrase “F-You Money” explicitly. Don’t make overt threats unless you absolutely have to. Many managers have fragile egos and will often fire you out of pure spite regardless of the consequences to them. Lunch is a great time to let it slip. Giving advice to interns or young coworkers is a great time to incidentally be overheard. Frame the conditions of your employment in the interview if you already have savings. I tend to get involved in personal finance conversations with coworkers and occasionally use my bank balance to support my points. Don’t shove it in everyone’s face but make sure you position is kept in mind.
Never bluff. You are likely to be called on it.
So how much do you need? That depends on your circumstances. A full year of expenses should be sufficient for most people. If you live in a hot market and have a resume with decades of experience and in-demand skill sets, then 6 months will cut it. Not that you shouldn’t have more. A decade in the bank affords you Fight Club level zen.
Fuck You Money is on top of normal savings for unexpected expenses. It’s not the money you keep just in case your car dies or your wisdom teeth need to be removed. Be sure to include the replacement value of any employment benefits you can’t go without while unemployed. It’s also not your retirement savings or vacation fund.
Borrowing potential does not count. For one it’s not dependable. Second, it does not provide the same psychological effect to you or to your boss. Three, don’t be willing to go into debt over such a trivial matter.
It’s easier to achieve with a more modest lifestyle. Remember that nobody will rent to an unemployed person; don’t expect to suddenly lower your expenses. Also don’t assume you have the willpower to suddenly reduce your discretionary spending.
Don’t assume you can get a good job in a month or two. Hiring slows down during some parts of the year. Some hiring processes can take a month or more. Don’t assume you will pass every interview. Don’t assume that what’s hot now will still be hot in a few months. Don’t assume you are as marketable as you think you are. Don’t assume there won’t be a recession.
Your life will be much less stressful with a pile of Fuck You Money in the bank. You can also afford to take risky fun jobs at small startups with more dreams than funding.
Leave a Reply
You must be logged in to post a comment.