I have a 10k anti-f***wit fund... here's why

It adds up pretty quickly! Obviously it’s highly personal- but for me, giving future me a bit of breathing space if things go tits up (for any number of reasons!) is worth investing in now.

Phillippa Koushk-Jalali

The AFF, or more commonly known as the F*** Off fund or The Emergency Fund.

Tell me about the anti-f***wit fund?

I have been advised by a few different older women in my life to have a "rainy day" fund which is completely mine with a min of £10k in it- but ideally enough to be fully self-sufficient for as much of a year as possible (the more the better)- just in case. We call it "the anti-f***wit fund" (AFF).

What are the rules of the anti-f***wit fund?

It’s just a silly name for a personal emergency fund BUT importantly it needs to be in an account you can access- but not one you can dip in and out of (I have found premium bonds are good for this- but there are loads of options!).

Where did the idea come from?

It started a few years ago when we found out that my friend’s mum had about £60k in hers after squirrelling away a little here and there. It meant that when she found out her husband had had an affair (after years and years of marriage!), she was able to tell him to get stuffed and be immediately financially independent whilst she went through the divorce 👑

It inspired me and a few of my friends to invest a little and often into similar pots (we’re talking like 20-100 quid a month) It adds up pretty quickly! Obviously it’s highly personal- but for me, giving future me a bit of breathing space if things go tits up (for any number of reasons!) is worth investing in now.

Are you currently single? Is this to protect you in a future relationship?

Yes, I'm single at the moment. My last relationship ended a few months ago and I’m dating here and there. My last boyfriend didn’t know about the AFF, but that’s more because he had his own money and I didn’t feel the need to share.

What would it be used for?

For me, having a personal emergency fund isn’t just in case a relationship goes wrong. Let’s be honest, that seems a bit depressing and hopefully, you won’t need to use it for that. Your AFF could be to help if you have an unexpected turn of events where you need a little cash buffer (losing your job, wanting to move out, a new boiler the week before payday etc.), but it could also be for fun stuff- that’s the beauty of it. I’ve heard it called a 'peace of mind fund', or a 'rainy day fund', but being able to cover 3-6+ months of your living expenses is the goal.

So far, have you avoided the f***wits?

Sadly I haven’t avoided them, but thankfully (so far) I have avoided marrying one 🤞🏼

LEARN MORE

For more on Emergency Funds and how to build one, start here: 👇

Good Life Guide: The Emergency Fund Reimagined

Where should you keep your Emergency Fund/AFF?

Somewhere accessible. An easy-access savings account is probably your best bet.

What are premium bonds?

🌟 Premium Bonds are an investment product issued by National Savings and Investment (NS&I). Unlike other investments, where you earn interest or a regular dividend income, you are entered into a monthly prize draw where you can win between £25 and £1 million tax-free. You can invest from as little as £25 in Premium Bonds and hold a maximum of £50,000.

🌟 Think of premium bonds as a saving product without guaranteed interest (that doesn’t do a good job of keeping up with inflation) but that’s a little more fun.

🌟 For every £1 bond, the odds of you winning a prize are 24,500 to one, so not great. This translates to a “prize rate” of 1.4% from June 2022 onwards. Crucially, the more you have invested, the greater your chance of winning (so the prize rate is just an average)

🌟 They’re backed by the Treasury so all your money is safe. You can withdraw any time (although it can take up to eight working days for the money to arrive in your bank account).

🌟 TLDR: You’re probably better off with a saving account if you want a guaranteed return but they can be useful if A) you like the idea of a bit of fun/cheeky flutter B) you have a lot of money to invest in which case premium bonds can form part of your portfolio.