Shortly after 9/11 my company kicked me to the curb.
Six months earlier our division president had taken me to a congratulations lunch for a record breaking year. We were explosively growing and embarrassingly profitable. Over a bottle of fine wine we discussed my very bright future.
It was the best job I’ve ever had. Great team, great leadership, great fun. Great money. I had just cashed a bonus check for more than I had ever made in a single year before.
A year later my little girl and I were sitting on the couch watching a news broadcast. The concerned news crew was filming people standing in a depression era style bread line. They were, the reporter said, the newly poor suffering from job loss in the dismal economy. I was still unemployed and licking my wounds.
“Daddy,” said my eight-year-old, “are we poor?” She was gravely concerned.
“No,” I said, “we’re just fine.”
“But you don’t have a job,” she said. Thinking, I’m sure, just like those poor souls on the TV. Who even thought she knew what a job was?
‘That’s no problem, honey. We have money that’s working for us instead.”
That’s what I said, but what I was thinking was: This was exactly why I worked hard to be sure I had F-you money. In fact I’d been working on it long before I heard the term.
If memory serves, it comes from James Clavell. In his novel “Tai Pan” (highly recommended BTW) a young woman is on the quest to secure 10 million dollars. She calls it her “F-you money,” although the F-word is spelled out in the book. So you can look it up in case you’re wondering just what word it is. And 10m is far more than it takes, at least for me. http://jlcollinsnh.wordpress.com/2011/06/02/the-monk-and-the-minister/
I may not have known what it was called, but I knew what it was and why it is important. There are many things money can buy, but the most valuable of all is freedom. Freedom to do what you want and work for whom you respect.
Those who live paycheck to paycheck are slaves. Those who carry debt are slaves with even stouter shackles. Don’t think for the moment their masters don’t know it.
This guy, one of my favorite bloggers, even says home ownership is a form of corporate bondage. Check out point “E.”:
http://www.jamesaltucher.com/2011/03/why-i-am-never-going-to-own-a-home-again/
I first accumulated the modest amount I needed around 1989. Not enough to retire on perhaps, but enough to say F-you if needed.
The timing was fortunate. I wanted to take some time off to pursue business acquisitions. When I found myself one morning with my boss in the office hallway screaming at each other, it occurred to me perhaps the time had come. Never did a guy more need to be told….
I may never own a Mercedes but I’ll always be able to say what needs to be said when it needs to be said.
Oh and it turned out I was unemployed for three full years after 9/11. I’m really lousy at job hunting.
Care to comment? Just click on the circle on the top right of the post.
20 Comments
Thats a great post Jim. I’m still trying to figure out the number myself but the realization we all get as we get older and deal with real life and real happiness is that its never as high as we thought.
Although, one story:
Was having breakfast with someone a few months ago and he told me he had just had breakfast with Steve Schwartzman, CEO of Blackstone. Steve is, of course, a billionare. But my friend told me he was VERY UPSET. Because Sergey Brin and Larry Page had more money than him. “Those fucking kids,” he said, “deserve shit compared to me.”
And that’s a guy who never have the magic of enough.
Very true. It’s not just about how much you have but also how little you need: http://jlcollinsnh.wordpress.com/2011/06/02/the-monk-and-the-minister/
great story:
and great to see you here!
hah wow look at you dad!! congrats it looks great! unfortunately i didn´t have time to read all of your posts but i did read the one about f-you money and i cant wait to see what some of your readers have to say about that topic. and the layout itself is very impressive, very proffesional. im impressed. looks like you´ve been busy while i´ve been away. can´t wait to hear all about it when i get back
see you on friday!!
love you
jess
Hi Cutie….
Great to see you here and reading this. Finally, a way to get you to listen!
Thanks for the kind words. you’ll have to keep reading now. never know when I’ll be talking about you.
See you Friday. How about lunch over the weekend?
Love Daddy
Hey man, Great post I would be fine with $10m, I Just want to be able to wake up and have that freedom that money brings. Nothing Else. You should post more often your posts are quite addicting and you write well. Thanks.
Hi Lee….
Thanks for the kind words! I do have several more posts in the works so stay tuned.
I’ve also been poking around your site. Good stuff. Like your ten movie selection. As it happens we just finished watching “Office Space” yet again. Wonderful lines in that flick. It was one of my inspirations for this:
http://jlcollinsnh.wordpress.com/2011/06/07/the-myth-of-motivation/
I love your wisdom Jim. “I may never own a Mercedes but I’ll always be able to say what needs to be said when it needs to be said.” — that’s the definition of wealth in my dictionary.
Mine, too my friend. mine too.
Great blog, I also came via mmm and similarly enjoying your writing very much.
One minor point (only because I love his books) – If I recall correctly I believe the term Clavell used was “screw you money” and it was in his book Noble House.
I don’t mean to correct you, just make sure that people read the right (awesome) book. Although “Tai-pan” is a great one too.
Cheers!
Thanks Corey…..
and no worries on the correction. It’s been a long time since I read Clavell and my memory’s not what it once was.
Still, I remember enough to second your praise of his books.
Collins,
Where would you suggest one to accumulate FU money? Me and my wife are doing a good job of saving in retirement accounts (401k and roth iras). I know I could access principle from the Roth, but how does someone determine how much to keep in taxable accounts versus retirement accounts. I have a strong desire to acquire FU money, but also want to take full advantage of tax savings etc…. Any thoughts or suggestions? love the blog.
Hi Blair….
This depends on your personal situation.
Will you be over 59.5 when you retire? Are you in a high tax bracket now?
For maximum immediate tax savings, 401k and IRAs are your first choice. But you’ll pay taxes when you pull the money out.
If you plan to retire young, Roths and taxable accounts give you access before 59.5.
Check out:
http://jlcollinsnh.wordpress.com/2012/05/30/stocks-part-viii-the-401k-403b-ira-roth-buckets/
Obviously I’m going to click on a post with “F-you” in the title! I know exactly what you mean, though. I save my money for the same reasons. If I ever need to stand up and walk out, I know I can do it without feeling instantly stressed out.
Ha!
My plan worked!
This post has been one of the best read since the blog launched. Maybe it’s the title, maybe its just strikes a cord with people.
Money can buy lots of things, but nothing more valuable than freedom.
As you clearly know, it’s not about quitting your job. It’s about knowing you could.
Came to you from MMM and find myself bouncing around the site of another kindred spirit. You are a very clear communicator!
This post really resonated. When I was in my mid-twenties and just starting my first “real” job after engineering school, I read a book during the presentation on retirement plans because I was so ignorant that it might as well have been given in Mandarin. Later my boss took me aside and introduced me to the concept of a F-you fund which he felt was in both our best interests. Someone else recommended the Vanguard website to me and thus began a lifelong self study and passion. Having that fund was empowering! I ended up leaving that very job (amicably) four years later, debt-free and with enough saved to take a short sabbatical and figure out the next phase. 20 years later I am financially independent (thanks to frugal living). Here’s hoping you’ve inspired others similarly.
I add my voice to yours and others about the freedom that comes from following these very simple principles and am in violent agreement about the choice of Vanguard. Thank you for your sharing.
Wow, Carol!
Great story! Congratulations!
Thanks for your kind words and especially for adding your voice to the conversation. For those just starting out it is incredibly important to hear from those who’ve walked the path. Just knowing it can be done is huge.
BTW, I love your phrase “in violent agreement.” I’ve never heard it before and just may have to steal it.
“I may never own a Mercedes but I’ll always be able to say what needs to be said when it needs to be said.”
This is a great perspective, thanks Jim. I think the day I realized I no longer needed the job, my value to my employer went up. Being able to say what needs to be said, tactfully of course, can add a lot of value to employers. My pay rose quite substantially in the following years partly as a result of this
Eventually when job satisfaction wasn’t as high as it used to be, being able to get the F outta there was worth more than any number of Mercedes
Well said, Jeremy…
…and well played. Congrats!
I still find it remarkable that most people prefer the Mercedes to their freedom. To each his own….
I just re-read this post, and still love it! It’s one of several that helped me get serious about early retirement / financial independence. I’m now well on my way!
Thanks, GP-FI…
…AND CONGRATS!
That makes my day!
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