You might be wondering what a FY Fund is, I shall get to that shortly… but first let me ask you a few questions.
What would happen if your car completely conked out today and you needed to replace it?
What would happen if you or your partner (if you have one) suddenly lost your job today?
What would you do if a fire devastated your kitchen and your insurance would not pay out because it was deemed to have been started by negligence?
What would you do if you or your partner (if you have one) was forced to stop working due to bad health?
Those questions are based on events – or similar events – which have happened to many people over the years. There is another question which you should answer and that is…
Were you happy with the answers you gave to those questions above?
If yes, then you are probably in a good place financially, if not, then you need to keep reading.
Life has a terrible habit of throwing curve balls at people, changing the course of their lives in a heartbeat.
One day life is good, you have oodles of money coming in each month, all of your outgoings are covered and you can afford to go out and enjoy doing plenty of fun stuff with your friends and family.
Then, out of the blue something catastrophic happens…
A Moment In Time
Your partner suffers a blackout while driving and crashes the car head on into another car resulting in it being a write off. (I should write intros for Holby City or Casualty)
After an agonising few days in hospital trying to find out what caused the blackout, it is discovered that your partner has an untreatable brain condition. The good news is that it is not life threatening itself but it will mean that they can no longer work or drive a car for safety reasons.
The car insurance company noticed that one of the front tyres on the car has worn tread. After closer investigation they find that the tread on that one tyre is ever so slightly under the legal limit making the car not roadworthy.
They make the decision that the insurance is void because you had not maintained the car up to the standard specified in the insurance policy and refuse to pay out for the damages to your car.
As they have already paid for the damages to the other car, they now write to you demanding that you pay them £3,500 to recoup the money.
The whole accident took less than a few seconds, but the repercussions will be long term.
As of that day, you are now the sole breadwinner. One of your monthly incomes has stopped and any Government disability benefits your partner may be entitled to won’t be processed for a few weeks at the earliest.
You are also the happy owner of a new outstanding debt of £3,500, and you are now without a car. As you drive 10 miles to work, you need a car and you need it fast.
You have £1,000 available to spend on a new car but as we all know, a reliable half decent one is going to be at least twice that if not more. You could try and use one of your credit cards but you have already maxed them out and you are already paying a large bill each month, which up to this day was manageable.
Family members drive you to work for the first few days and help out with any other car journeys but it isn’t ideal. You need your own car sharpish and so you accept the kind offer from a family member to loan you £2,500 to buy a new car over the weekend.
The New Normal
Last week everything was running smoothly, today you are now adjusting to a new life as a one income household with debts you didn’t expect.
Sounds bleak doesn’t it?
But it can happen.
I have incorporated several events which have happened to people I know. I am happy to say that they didn’t all happen to the same person all at the same time as I have written it.
Imagine if that really happened to you… how would you fare?
Most of the population of the UK wouldn’t be able to deal with a series of events like that easily. They would be under a lot of stress and pressure. Ideally, the perfect scenario would be to only worry and focus on the health of your partner but with all of the financial issues building up, it isn’t possible.
That is unless, you have what I call a FY Fund…
The Stress Reducing Power Of A FY Fund
A FY Fund is a large fund of money which gives you security and freedom. The FY stands for F*** You which I learned from a very successful multi-millionaire sports personality I met many years ago.
I wrote about it in my book Why Didn’t They Tell Me? You can get a copy of that book here:
Click Here >> Why Didn’t They Tell Me?
He told me that even though he wasn’t interested in the trappings of money and being wealthy itself, having money gave him freedom. His wealth was his f*** you money. He no longer had to work a job he didn’t like, he didn’t have to endure hours of being in the same room with people he didn’t want to be with.
He could come and go as he pleased and do whatever he wanted with his own time. If anything unexpected happened, like the example scenario I laid out above, he could afford to take it in his stride without fear of any financial holes suddenly appearing.
Ok, so his huge slush fund of cash doesn’t help you, but the idea of your own FY Fund should. Building your own FY Fund should be a priority. You need to build your own FY Fund as soon as you can. It might not be easy at first, but you do need to start. Not only can this fund help out when the unexpected happens, it can give you peace of mind and security for your life.
Money Is A Tool
Whether we like to accept it or not, money makes the world go round. It makes our lives easier. Money is nothing more than a tool. A universal tool which can buy a multitude of products, services and experiences. Money opens doors, it eases stresses and gives us freedom.
Whenever anyone says to you ‘the best things in life are free’, ask them to try and pay their rent with sunshine. Maybe they can pay their mortgage with a hug, who knows, maybe Tesco will happily accept a bucket of rainwater in exchange for food. I am sure that Plusnet and Vodafone will allow you to pay your mobile and broadband bills with several jars of homemade apple jam and a bag of homegrown lettuce.
You know that you need money, the problem is that people do not realise how much we actually need money. People love to spend it when they have it. As soon as it is pay day they are busy buying stuff or out socialising with food and drink. Whenever life is good, we have plenty, it slips through our fingers.
But it’s when life isn’t good when we need it. And the pain people feel during those bad times when money is really needed but in short supply is far worse than the joy people feel when life is good and they are spending money on things they don’t really need.
Obviously, this article is not about making you feel bad or judging you if you have questionably spending habits, it’s about trying to make you aware that your biggest priority after health and family should be to build your own FY Fund.
To build your own FY Fund you need to do 1 of 2 things… or both.
- Cut back on non essential spending and save as much money as you can. This can be really hard and make for a miserable life.
- Make more money than what you get through your job.
Number 2 is more preferable as the money earned is a bonus. I would suggest that you also do number 1 at the start of implementing number 2 so that you have some breathing money and seed money allowing you to grow the business you are working on.
With number 2, there are no limits to how much you can make, but with number 1, you are limited to how much you can save because you already have a set amount of money coming in and specific outgoings which are not likely to change much.
At least with number 2, you can earn as much as you can manage. If you think long and hard about how you will make extra money, you can develop a system which will give you back far more money than it requires in time, money and effort invested.
For example: Writing sales letters can generate a lot of money. And when you know how, a sales letter can take as little as a day to write.
‘The most successful letter I wrote…and one of the shortest at two pages of A4…has pulled in over £5 Million so far, and it’s still coming in. I wrote that one way back in 1998 – in an afternoon!’
– John Harrison Streetwise Publications
Writing sales letters is a skill which can be learned by almost anyone. Most sales letters use a system and follow time-proven templates which are easy to learn. Letter writers have templates close to hand which they reference. Basically, writing profitable sales letters is like painting with numbers but instead of paint, you use words.
Learn more about writing sales letters here: One Letter From Retirement
To build your own FY Fund, ideally you need to find a way to make money which gives you back maximum profits without taking up a lot of your time and money.
Click Here To Get Your Own FREE Copy Of The Above Book!
Your ideal business model should follow these 5 core principles:
- Requires very little upfront or ongoing expenditure unless you are leveraging money itself.
- It doesn’t require too much training and learning.
- It requires very little actual work… especially hard physical work.
- Requires very little of your time.
- The returns are the highest possible.
Maybe I should throw in a 6th point and that is…
- Can you replicate it and create more than one income stream? Multiple-income streams are the way to wealth and security.
Another fantastic business model which works hand-in-hand with writing sales letters is the information publishing and email marketing business.
With information publishing you create and publish ebooks, courses and/or membership websites about topics people need and want to learn. This is where writing sales letters really helps bring in the big bucks
With email marketing, you promote your own information products or other people’s for a commission as an affiliate. Knowing how to write sales letters helps to write highly profitable killer emails.
In 2014, Anik Singal generated $1,103.086 in just 12 days promoting just one high priced affiliate product.
He wrote and sent out 18 emails over a 12 day period, which is a lot of emails for Anik, resulting in a cash injection of over $1 million.
Who wouldn’t want a payday like that?
18 emails over 12 days… does that sound difficult to you?
It wouldn’t even take 12 days to write those emails, they were probably written in less than half that…
That’s $1,103,086 for 12 days of work.
That’s how powerful this business model is.
You can learn more about email marketing and information publishing here: How To Build Your Own Freedom Business.
A FY Fund will give you back your freedom and give you more security and peace of mind. Should anything happen which throws a serious curve ball into your life, sending you spiraling into an unplanned and unexpected direction in life… your FY Fund is there to help you deal with it.
Further reading How To Retire Early By Writing Simple, Easy To Write Letters.