F-Money definition

F-Money….: it is money that allows you say the F-word to the situation. It is that what gets you to be financially independent. It also is the summary of my long term goal: have the freedom to decide, have options. It is not about retiring early.

As the F-Money is there to provide income, it needs to be money that is is available for that unique purpose.

  • be available: if you decide to sell the assets now, you have the money in 2-3 days. not 2-3 months.
  • Have no impact: It should also be assets that you can sell without impacting your basic lifestyle.

This thus excludes

  • Your main house: if you decide to sell it now, it takes in Belgium at least 4 months to get your money (If you find a buyer the first week it is on the market). And you need to start looking for an alternative:  Live in a trailer, rent something, kick someone out of a rental property,… Therefore, I don’t count it in my F-money
  • Tax sheltered pension saving: this money is comes available  when you reach the pension age. You can request it earlier, but then you pay 33 pct taxes (in March 2015). I do not count it into my F-Money
  • Company Pension Plan: same as for the pension saving: you can request it before pension, but then you are taxed at max. I do not count it
  • Emergency saving: it is money that is set aside for emergencies or short to medium term plans. When working or enjoying the F-money, emergencies can still look around the corner. I take a conservative approach and thus exclude it from my F-Money

Elements of my F-moneyI include

  • My pension saving
  • Saving for future holidays
  • Saving for future house renovation/upgrade
  • Saving for future gifts to kids

Even if these last 3 savings have a specific goal attached to them, I will be flexible at the time that I need the funds. If using funds allows me to reach goals in life that I value more at that moment in time, than it will be money well spend.

How do you define F-money?

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