Dom is getting ready for the day. And, like a lot of people in their early twenties, she’s recording her routine on TikTok. As she combs her hair, she reveals that she’s looking to leave her toxic living situation and is quietly putting money away to make that happen. She titles this her ‘get the fuck out’ fund (or GTFO fund). It’s her secret stash of savings to help her quite literally get the fuck out of a sticky situation. And like Dom, you too, should have one.
But with so many bills and so little time or money, are GTFO funds really necessary? When is the right time to spend them? And how the hell can we actually start saving for them? Worry not! The answers lie ahead.
Meet the experts: Lesley Mackintosh is the founder of Independent Women, a community of female financial advisers. Emma-Lou Montgomery is an associate director for personal investing at Fidelity International. Becky Spelman is a psychologist.
What Is A GTFO Fund?
A GTFO fund is a personal savings to help you get out, in a hurry, should you need to. It’s a savings stash that is completely separate from a partner. And you build it up so that you can walk away from something (a job, a relationship etc.).
READ MORE: Emergency Funds Explained – Why You Need One And How To Begin
Why Do You Need A GTFO Fund?
When JoJo sang, ‘Get out, leave right now,’ in 2004, we felt that. But in 2025, having financial independence has become a luxury. The past few years have been, well, a struggle. From endless unprecedented times (no more! Precedented only from now on, pls) to soaring energy bills, rising food prices and skyrocketing rents, our financial futures are looking decidedly bleak. This is exactly why experts are insisting we all start opening our GTFO funds.
Having these safety-net savings is about more than just bowing out of crappy relationships. They’re for the multitude of fun little curveballs life sends our way. We’re talking about anything from an eviction notice from a dodgy landlord to being retrenched suddenly.
How To Start Your GTFO Fund
We get it! It’s easy to feel defeated when you open up your wallet and all you find are old receipts and cobwebs. But Lesley Mackintosh, founder of Independent Women, a community of female financial advisers, urges women to start saving as soon as they can. “At all stages of life, you have your own money that no one else can access to give you true independence and flexibility,” she explains.
She suggests starting small, printing out your most recent bank statements and taking ‘a good honest look’ at your outgoings. You’ll really begin to notice the difference if you’re able to resist the siren call of the Zara sales. “Start today with an amount that you can afford to maintain – something you know you won’t miss,” she says. “Consistency is key, as little bits lead to good saving habits, and you can increase the amounts as your cash flow improves.”
But even saving just a tiny amount each month can make a substantial difference, explains Emma-Lou Montgomery, associate director for personal investing at Fidelity International. Research by the company found that women who invested an extra 1% into their workplace pensions during their career could build, on average, an additional R921,155 by the time they retire.
READ MORE: Finance Queen Carla Venter Says *This* Is How To Budget In 2025
Stop Waiting, Just Start
“It’s important to start as soon as possible,” Montgomery explains. “Many people choose to wait until the financial climate is a little better. But the longer you leave it, even by just a year, you can find yourself losing out on a significant amount having built up.”
And there are ways to even make small amounts stack up; Mackintosh recommends opening an instant access savings account, where you can put money in and watch it gain compound interest if you pay in monthly. It also allows you to access your savings whenever you wish. “Interest rates are around 5% for instant access bank accounts, and these can be set up online in moments,” she explains.
“Try out a few different banking apps to see what you like best. Some banks have made it easy to set up different savings ‘pots’ so you can manage savings at a glance.”
How Big Should Your GTFO Fund Be?
Mackintosh recommends having between three and six months’ worth of your annual salary stashed away in emergency savings. “This amount means you can leave a job with nothing lined up, or if you need to move suddenly, your rental deposit is there,” she explains.
Let’s be frank – having that sort of cash set aside isn’t a reality for most of us, particularly during the ongoing shitshow of the economy right now. The cost of living crisis has forced those of us who had previously paid into savings to cut back. And according to Standard Bank data, 52% of entry-level private banking clients have less than one month of their salary saved in immediately accessible cash savings available. So if you’re struggling to save, you’re not alone.
How Do I Stop Myself From Dipping Into It?
Feel like you may be tempted to dip into this GTFO fund? Then Montgomery advises putting some of your savings into a fixed-rate individual savings account (you may know them as notice deposit or fixed term savings accounts).
These type of accounts often have limits to prevent you from accessing cash. “However, it does also mean that money is locked away until the end of the fixed rate period [usually around five years], so you may not be able to access the funds in an emergency,” Montgomery says.
So before you choose an account, make sure you’re familiar with the terms as well as how much notice you would need to give in order to withdraw money. After all, an emergency fund it not as useful if you can’t actually withdraw the funds in an emergency.
READ MORE: 5 Good Money Habits That Your Kids Can Learn From
Is A GTFO Fund Different From Your Savings?
Yes. You need to remember, a GTFO fund is different from regular old savings – this is peace-of-mind money, explains psychologist Becky Spelman. “Safety-net funds provide a financial cushion for unforeseen circumstances, such as medical costs or a new car if yours is written off, offering a sense of security and peace of mind beyond regular savings,” she says.
Ultimately, A GTFO Fund Gives You More Freedom
Essentially, having one means you’re not totally beholden to your awful boss who’s sending you into constant panic attacks, and you don’t feel you have to stay with your partner who now gives you the ick just because you split the rent. And this, in itself, is empowering – even if you never actually end up using the money.
Not having a pot that gives you the opportunity to say ‘fuck you, I quit’ if needed proves detrimental to our mental health, Dr Spelman continues. “It can negatively impact mental health by causing financial worries, limiting opportunities and creating a constant state of instability and fear about the future.”
So while – as we’re always told – money can’t buy you happiness, a GTFO fund can buy you peace of mind and the choice to start afresh. It can also give you the financial confidence to make riskier decisions. “Financial independence brings with it a sense of security, control and freedom,” Dr Spelman says, and “the ability to make choices based on personal values and goals without being held back by financial limitations.” Well, we like the sound of that.
This article by Kimberley Bond was originally published in the April/May 2024 issue of Cosmopolitan UK.
