#48 How Much Money Is $%^# You Money

There's this term in the world. I've heard it a few times from friends. I guess it's weaved its way through popular culture. People with jobs they are not fulfilled with may throw this term around in reference to the amount of money they need to walk into their bosses office, say f--k you, spin their chair, walk away from their desk, and slam the door on the way out for the last time and not be worried about the consequences (at least financially).

This is "fuck you" money.

(mom, please excuse my language)

How much money is Fuck You money?

The way it's used in popular culture. It sounds like a lot of money. A sum so great that it seems impossible, unachievable, never in your lifetime, and not worth your time and effort. You think this is "start-up" money, "venture capital" money, "Wolf of Wallstreet" money or "weed money", all of which are more likely in the several or dozens or even hundred's of millions. You think you don't have the skills, knowledge, expertise, passion, or drive.

Take a step back. Read the first paragraph again. F--k you money is just financial independence, it's simply financial freedom, it's Early Retirement, it's having enough money to choose the life you want to live.

For some people that want yacht's, sports cars, houses on the beach, and first class flights around the world, that might be 10's of millions of dollars, but for most people that want to live the life they are living now, but maybe 25%-50% more comfortable and not working a boring job, it's $1 million to $4 million. That's not even close to "start-up" money.

You Need Money To Make Money

Even $1 million to $4 million seems far away, doesn't it? 

It's not.

If you have $1 million how long will it take for you to get to $2 million? 

9 years.

If you have $2 million how long will it take for you to get to $3 million?

6 years.

If you have $3 million how long will it take for you to get to $4 million?

5 years.

Going from $1 million to $4 million is much faster than going from 0 to $1 million. But to get to that point of accelerated growth of your investments, you need to get to $1 million first.

How can you get that first $1 million?

Save ruthlessly. If you save $50,000 a year will take 15 years.

If you buy a house, you can count your principal payments as part of your savings too. Your house is one of the best places to save money because of the principal residence tax exemption in Canada. These savings are like a TFSA when you sell the house any capital gains on your house are tax-free. For the last 5 years, without thinking about it, we have been saving $10,000 a year through principal payments on our mortgage. 

Regardless of how many people live in your family, if you can find a way to live on one income you are setting yourself up well to save a lot.

For two-income families, this means saving one entire income every year. If both income earners can make $50,000 a year, then $50,000 is saved every year. Even if the second person makes $30,000 a year, if you can save all of that, that's significant.

Trying to get to Early Retirement as a one income family is going to be tough, unless the single income is as much as two incomes and you can live on half.


Save Money Retire Early is written by Jon Lo, a barely 30 something change optimist, and personal finance guy. I believe anyone can be rich or poor, it's what you save that makes the difference.

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