What is an FU fund?

An FU fund, also known as "Fu Money," is a concept in financial independence circles representing a sum of money saved that gives you the power to make life decisions without being overly concerned about the financial implications. This fund is essentially about having enough money set aside to be able to say "no" to things that don't align with your personal or professional values, particularly in a work context. It provides psychological power and flexibility, allowing you to take control of your life and make choices in your best interest without undue pressure to conform to unfavorable conditions.

The size of an FU fund can vary depending on personal circumstances and expenses, commonly being equivalent to one to two years’ worth of expenses. This fund is seen as a more ambitious and empowering version of a simple emergency fund, which typically covers shorter-term financial necessities. An FU fund can extend your financial runway, giving you the ability and confidence to quit a job, switch careers, or even take a break from work if needed. It's a key milestone in the journey towards financial independence, emphasizing the importance of having a financial buffer that allows you to live on your own terms 1 2 3.