A key component of a financial plan is an emergency fund, and that emergency may well be that you can’t take what you are doing anymore. You need walk-away money.
At a basic level, this is enough money to cover three or four months worth of expenses if something huge and unexpected came up or if you were to lose your job. The standard argument is that it is preparation for the unexpected. However, it can be preparation for a calculated break from whatever situation you are in.
For some people, that’s the ability to leave a jerk of a boss or an abusive relationship. Unfortunately, there are people out there who wish us ill, and if it takes money to get away from them, then so be it.
People have complicated emotional relationships with money. For me, it has always meant freedom. If I have enough money to do what I want, then no one can hold me back. I can do what suits me. Needing less money and having more money are two ways to get to the same point. You can start small: cutting back on one thing and putting a little bit in the bank. It’s cheaper, and more effective, than alcohol or retail therapy to escape the jerks around you.
The irony of burnout is this: the only cure is taking time off. However, if you could take time off, you wouldn’t be burned out in the first place. That’s why you need walk-away money.
Wow! It’s true money is truly freedom. The ability to come and go as you please. Great article – for some reason I never really thought about it this way.