The Official Blog of Alpha Chromatica
The Official Blog of Alpha Chromatica
In Which the Author Talks about Personal Finance for Artists - Part 2

In Which the Author Talks about Personal Finance for Artists - Part 2

Tags
Personal Finance
Author
Ganz
Date
July 14, 2024
Post No.

Chroma 0225

URL
https://www.linkedin.com/posts/heyganz_alphachromatica-ace-chroma-activity-7214704530947461121-P0c5?utm_source=share&utm_medium=member_desktop
image

Calculate Your "Fu*k You Money"

Understanding Gross vs. Net Income

Before we dive into the calculation, it's essential to understand the difference between gross income and net income. Gross income is the total amount you earn before any deductions like taxes, insurance, and retirement contributions. Net income, on the other hand, is what you take home after these deductions.

Determine Your Gross Income

Look at your latest pay stub or annual income statement and find your gross income. For simplicity, let's say your gross monthly income is $4,000.

Multiply by 6

To start building your "Fu*k You Money" fund, take your gross monthly income and multiply it by 6.

4,000 (Gross Monthly Income)×6 = 24,000

So, your target amount is $24,000.

Purpose of the Fund

This fund is your safety net, giving you the freedom to walk away from toxic work environments or narcissistic boss-types without immediate financial stress. It's about having peace of mind, knowing you can lose your job and still be alright for six months.

Read Part 1 Here - https://lnkd.in/gpHJMH6f