A friend recently told me about her college professor, an ex-marine. The #1 thing he wanted students to take away from his course was to have a ‘Go To Hell’ fund.
But what exactly is a Go To Hell fund? It means having enough money saved that if you do not like your work situation, you can confidently tell your employer to go to hell.
This money helps you sustain your current lifestyle until you find a new job.
Having a Go To Hell fund can be helpful in many situations. Your work might involve dealing with rude customers. You may disagree with the direction your company is taking or with your company’s ethics. You might be chronically overworked and want a break. Or you may have a terrible manager.
We’ve all encountered these scenarios at some point, and a Go To Hell fund grants you the freedom to walk away, even if you haven’t secured another job yet.
Benefits of a Go To Hell fund
Beyond the obvious advantage of being able to walk away from a job, a Go To Hell fund has several other benefits.
Firstly, it empowers you to take calculated risks – for example, changing your industry. You have the financial flexibility to try out new things or take a break from work altogether.
Secondly, having a Go To Hell fund boosts your confidence. You may not feel tied to your job and can afford to speak your mind. Heck, you may also give your colleagues a piece of your mind (some of them have it coming, anyway). And like in the movie Office Space, you might even get a promotion for doing so!
Really successful people say no to almost everything.
Warren Buffett
How to build up a Go To Hell fund
The first step is to determine how much money you actually need:
- Determine average monthly expenses: If you already have a budget, congratulations! If not, track all your spending for a while.
- Estimate time needed to find a new job: This will vary based on your field of work, location, etc. Make sure you account for situations like a downturn in your industry or in the overall economy.
- Calculate Go To Hell fund amount: Based on your monthly expenses and estimated job search duration, you can calculate the required amount. For instance, if your monthly expenses are $3,000 and estimated time to find a new job is 7 months, then you will need $21,000 for your fund. It is always a good idea to budget a bit more, just in case.
Once you’ve determined the necessary amount, you can start building your fund. Options include increasing your income through side hustles, making wise investments, or, most straightforwardly, reducing expenses and saving more.
Most of us can make changes to our spending and save more. Here are some ways to create a savings plan and save on Transportation, Health Insurance, Groceries, Utilities, etc. If making these changes seems daunting, think of them as temporary measures until your build up your fund.
Additionally, allocate windfalls like tax refunds or gifts toward your fund rather than splurging.
Related Article: The cult of overwork and why we still value it
Easy to build up the fund; harder to say the words!
There is a difference between having a Go To Hell fund and actually using it.
Despite having a Go To Hell fund, people may still stick with their current job because they don’t want a gap in their résumé. Or because a known devil is better than an unknown devil.
But building a Go To Hell fund is still worthwhile. It can give you the confidence to negotiate a better work arrangement, even if you don’t leave your job.
As with anything else in life, it is better to have the option than not to have it. Aa the saying goes – A person with options is a person with power!