You Don’t Need $3 Million. You Need a Runway.
Why Financial Freedom Might Be 5 Years Away — Not 30 — and How to Build Leverage Sooner
By Devon Coombs, CPA, MBA
1. The Real Gift in This Recession
Let’s be real: everything looks bleak when you get that Slack message from HR or hear the rumor that your department might be “reorganized.” We’re living in strange times. Budgets are slashed, layoffs loom, and entire industries feel like they’re teetering on the edge of chaos. It’s like discovering Google changed its layout to Gmail yet again — instant confusion and panic. But guess what? Panic can be a gift in disguise, and every time I’ve thought my sky was falling, it turned out to be a chance to see the horizon differently.
I say this as someone who used to be so broke I slept in a borrowed Honda Accord behind a grocery store, hoping the night guard wouldn’t knock on my window. I had literally zero “Finance Umbrella” money. And ironically, I learned more about the true meaning of finance in those either too cold or too hot, uncomfortable nights than in any corporate finance job.
If you’ve got a job — or even if you just got laid off — and you have anything in the bank, you’re already better off than I was then, and many others are now. But I’m not here just to offer a pity story; I’m here to give you the CFO perspective on your own life. Because guess what? Big companies aren’t all that different from individuals: they want stability, the ability to pivot, and enough runway to not freak out when the economy feels more like a rollercoaster ride than a science.
2. Why I’m (Lovingly) Trashing the 4% Rule
You might’ve read personal finance blogs that worship the 4% rule like a magical incantation. “Accumulate 25x your annual expenses, retire, and the money never runs out.” Cue the confetti.
But we never talk about the million exceptions. For one, the 4% rule is from a study analyzing retirement scenarios over 30-year periods, assuming zero desire or ability to earn a single extra dollar. If that’s you— if you legitimately never want to do anything that pays money again — then sure, cling to your 4% rule.
But what if you’re 32 and unstoppable, or 37 and only halfway up your career mountain? That 4% rule might be overkill. Many people paint the 4% number as ironclad, but it’s based on research that assumed no extra income or side hustles, and it definitely didn’t factor in your personal hustle.
The 4% rule says that if you spend $10K a month in a HCOL city, you need at least $3M of investible assets to retire (that isn't including your house, by the way). That's a lot of dry powder.
But if you’re under 50 (even 60!) and not completely allergic to working, side hustling, or finding creative ways to cut your expenses without cutting your lifestyle, there’s a better concept: F.U. (Finance Umbrella) Money. Because who the heck said you need $3–4 million to walk away from that job that has you wearing “I Hate Mondays” socks year-round?
3. Defining F.U. (Finance Umbrella) Money
F.U. = Finance Umbrella
Because it’s the stash of cash that covers you when corporate storms roll in. We all know what it really means, but I prefer to keep it slightly more polite but still punchy. Finance Umbrella says: “Rain or shine, you’re protected enough to make choices from a place of strength, of leverage, not desperation.”
FU Money is the money that lets you walk away from an awful boss or a suffocating situation without fear. It doesn’t mean you’re set for life. It just means you have a big enough cushion— like 10 years’ worth of expenses — so you can risk a career pivot, take a sabbatical, or go back to school if you want.
The 10-Year Rule of Thumb:
Okay, so let's take that $10K a month family in a HCOL. F.U. cash runway in my mind is 10x the yearly costs - or in this case, $1.2M. That's almost 1/3 the recommended 4% rule, and is completely reasonable. 10 years is a long time. I went from $10K in debt to nearly financially free in ten years. You can start a new degree and get a PHD in 10 years. You could leave your family, start a new one, and have a few kids (not recommended, but you get the point). You could have a whole new life! So why hold off on your new life for some magical number?
Now, some of you might be hyperventilating at the idea of saving $1.2M. But stay with me: you don’t have to save it all at once. You can combine investment returns, partial consulting gigs, and a lifestyle shift. Plus, if you’re 35 or 40, you can pivot jobs in a few years. That’s the difference: F.U. money presupposes you’re not done hustling; you just want the freedom to hustle on your own terms. Also, that number goes down if you can bridge it with monthly income or can lower your lifestyle expenses.
Imagine the power you could have in your office if your boss said "I want you to work this weekend on this project" and you were able to confidently say "No, I have plans" with knowing the worst case scenario is you could have some freedom to find another job. Now that's leverage!
4. F.U. Lite: Half the Runway, Twice the Boldness
Now, if 10 years of expenses sounds like a moonshot, consider FU Lite — roughly 5 years of expenses. This smaller runway is still a game-changer because it gives you enough breathing room to leave a toxic job or switch industries without the terror of, “Oh my god, how do I pay rent next month?”
Lite Example: You spend $5,000/month. That’s $60,000/year. For 5 years, you need $300K.
Who This Is For: You have strong, in-demand skills. You’re confident you can reenter the workforce or spin up a paying gig within a couple of years.
With 5 years of expenses stashed away, that's:
Enough to let you pivot careers, switch industries, or take a year off to raise goats in the countryside if that’s your jam.
Perfect if you have in-demand skills and you’re cool with “Plan B” if everything goes sideways.
Example: If you spend $5,000/month ($60K/year), 5 years = $300K. Not chump change, but also not the millions typically cited by the hardcore FIRE community. You’re basically telling the world: “I can figure out how to retool or re-enter the job market if this time-off plan or new business idea flops.”
Why it works: You avoid the panic of next month’s rent and the blowtorch of a 30-year early “retirement.” It’s just enough cushion to let you be bold without being reckless.
5. The Surprising Joy of Cutting 25% & Rediscovering Yourself
Every CFO knows cutting costs improves the bottom line more directly than chasing iffy revenue. Similarly, cutting your personal lifestyle burn can get you to FU Money or FU Lite far faster than you might think.
So let’s talk about the magic of slashing your personal monthly burn by 25%. A CFO would start with overhead costs, renegotiate vendor contracts, and kill anything that’s not generating ROI. Guess what? You can do the same.
Imagine you spend $8,000/month. If you trim that to $6,000, you’re saving $24,000 more per year—that’s money that can either extend your runway or shorten the time it takes to build that runway. A 25% cut might seem painful, but you might realize you don’t miss half the stuff you used to blow money on.
Biggest Wins are Rent/Mortgage: Are you living in a high-rise mainly because it’s got a fancy name and an elevator that smells like lavender? If that’s not essential to your happiness, consider downsizing or relocating.
Subscriptions That Went Full Gremlin: Netflix, HBO, Disney+, Hulu, Amazon Prime, Spotify, Peloton classes, your monthly Cheese-of-the-Month membership… it never ends.
Daily Mindless Spending: That $12 green smoothie you chug without even tasting it. Or the weekly impulse Amazon cart that arrives at your door, containing stuff you forgot you even ordered.
Why Joyful, Not Punishing: You’re not cutting your best friend’s birthday dinner or your life-giving gym membership. You’re cutting fluff you barely notice. Often, you’ll find you don’t miss that fluff once it’s gone.
You might cry the first day you realize you can’t watch all 27 streaming platforms at once, but eventually, you’ll forget half of those shows exist.
6. CFO Mindset — Without the Corporate Buzzwords
Adopting the CFO mindset for your life means making strategic decisions rather than reactionary ones. CFOs ask, “Is this expense mission-critical or is it fluff?” They also invest heavily in profitable areas.
Mission-Critical “Expenses” could be your kids’ education, a gym membership that keeps you healthy, or a once-a-year family vacation that recharges your relationships.
Fluff might be the daily $15 lunches you barely register or the high-end cable package you never fully utilize.
Imagine you are a business, and your brain is the CFO. Your brain (the CFO) would likely ask, “Are we spending money on worthless nonsense that’s draining our runway and preventing us from investing in actual growth?”
What would a CFO do for you?
Set a Clear Target: FU or FU Lite.
Build a Zero-Based Budget: Start from zero, justify every expense.
Plan for Growth: Maybe you realize upskilling or hiring a coach is actually a high-ROI decision that’ll multiply your future earning capacity.
Revisit & Adapt Monthly: Because a CFO doesn’t wait until year-end to discover overspending. They track diligently.
A CFO invests in what yields returns — money, career growth, mental health. Everything else is up for debate.
7. A Trio of More Entertaining Case Studies
7.1 Alex — The Downsizer Turned Remote Tax Preparer
Situation & Old Life: Living in San Francisco with a $7,000/month burn rate on an annual salary of $120K. He had about $40K in savings, which is only enough for ~6 months if he lost his job.
The Pivot: When the layoff came, he realized he didn’t need the SF grind. He moved to Reno, NV, cutting his housing from $3,200 to $1,200, took a $3,000/month remote tax prep job, and saw his monthly burn plummet to $2,500.
Outcome: The biggest aha: He discovered he was working hard in SF for a lifestyle he didn’t even care about. He realized his “cool SF life” was basically paying $3,200 in rent to live near a loud street where people rummaged through recycling at 2 a.m or people breaking into car windows on the street.
Result: Moved to Reno, monthly burn: $2,500. Took a remote tax prep gig, netting $3,000/month. Built a year of runway in 6 months. Freed up enough mental space to discover he’s passionate about teaching personal finance to teens.
He used to dread grocery store lines in SF. Now he’s in Reno, greeting the cashier by first name, and writing lesson plans on taxes for high schoolers. That’s personal growth!
7.2 Priya—From Burnout to Fulfillment
Situation: Private equity finance analyst, age 34, pulling 60- to 70-hour weeks. She had about $80K saved, plus a severance after a forced relocation was demanded.
The Pivot: Priya realized she was burned out, so she chose a 2-year Master’s in Education while picking up a part-time credit union job. She wanted a stable, less stressful future.
New Path: Two-year Master’s in Education, part-time gig at a credit union to cover basics.
Outcome: She discovered that living on $3,000/month was totally feasible if it meant less stress, more purpose. She may never drive a Tesla X or $3M Net Worth by 40, but she’s genuinely happier. She’ll have a teacher’s pension, and if she invests modestly during her working years, she’ll have enough to lead a life that aligns with her values.
7.3 Marcus—Promotion + Lower COL = Wealth Snowball
Situation: Single, no kids, $8,000/month lifestyle in the Bay Area.
Opportunity: A VP role in Austin at $250K + bonus, cheaper housing, way less daily friction.
He Took It: Dropped monthly burn to $5,000.
Now: He invests the leftover $3,000 each month — plus bonus lumps — and is on pace to surpass $1M in net worth well before 45.
Marcus says the only downside to Austin is explaining to coworkers that barbecue sauce is not an acceptable coffee creamer. He’s adjusting just fine.
8. Humor in Hard Times: Why Laughter Is Part of the Plan
There’s a reason stand-up comedy is thriving even in dire economic times: laughter is a coping mechanism, stress relief, and sometimes the only rational response to random chaos.
Apply humor to your finances:
When you get scared about making a bold move, remember how happy you were as a kid to have $5 for ice cream, and how silly we all can be about our finances.
When you update your budget, play some ridiculous theme music or pretend you’re in a fantasy epic: “Lord of the Spreadsheets: The Fellowship of the Automatic Transfers.”
Laugh at your own illusions. If you once believed wearing a $200 pair of jeans made you a success, you’re not alone. We’ve all been there.
Laughter helps you navigate the tough transitions so you don’t melt into a puddle of fear the moment a bill hits your inbox.
9. Age & Stage Variation: 30s, 40s, 50+
In Your 30s
You can still do a lot of career maneuvers.
If you can stash 5–10 years of living expenses, you can basically treat your 30s like a playground — switching careers if you want, or moving across the country.
At 30, you still have the knees to squat down for boxes on moving day, so relocation is less terrifying.
In Your 40s
Possibly dealing with mortgages, kiddos, or a dog that needs special medication.
But you also might be at peak earning potential or close to it. Slashing 25% can have a huge impact here.
You might be carpooling your kids to soccer at 6 a.m., but that doesn’t mean you can’t relocate to a cheaper city or get a better gig. Maybe your kids can carpool themselves… right?
In Your 50s
Retirement is on the horizon, but you might still have 15–20 years of potential “work” if you choose.
Maybe partial retirement or consulting is your jam. F.U. or F.U. Lite can open those doors.
10. Recession-Proof Tactics
10.1 Build or Refine Your “Skills Toolbox”
During hiring slowdowns, sharpen your existing skills or learn complementary ones. For example, if you’re an accountant, maybe get specialized in forensics or AI-driven analysis.
If you see a new field that intrigues you — cybersecurity, data analytics — this is your chance to pivot.
10.2 Consider Tax Optimization Moves
Roth Conversions: If your income dips (or you have a low-income year), it’s a great time to convert Traditional IRA funds to Roth at a lower bracket.
HSA Maxing: If you have a high-deductible plan, the HSA is triple tax-advantaged. It can become a stealth retirement account if you pay medical bills out-of-pocket and let your HSA compound.
10.3 Dollar-Cost Averaging
When the market’s down, you’re buying shares at a discount. Historically, markets recover and grow. These dips can be wealth-building opportunities.
10.4 Networking & Relationship Building
A CFO doesn’t operate in a silo; they maintain relationships with bankers, partners, and stakeholders. Likewise, don’t isolate yourself in a downturn. Expand your LinkedIn network, attend conferences, help others find roles. Social capital pays dividends.
Remember, an extrovert's small talk is someone else’s ‘deep conversation.’ So do your best, even if it’s awkward. That awkwardness might land you your next big break.
11. Embracing the Emotional Whiplash of Reinvention
Pivoting your entire life is going to feel like flying a plane without a bottom, blindfolded, backwards, in the rain. Some days, you’ll be thrilled. Other days, you’ll question your sanity.
Allow the Awkward Feels: You might wake up missing your old routine, your old “identity,” even if that identity was an overworked zombie.
Celebrate Small Wins: Did you manage to cut your grocery bill from $700 to $500 and still eat well? High-five.
Check In with Friends & Mentors: When your internal voice spirals, letting them remind you why you started this journey is gold.
12. Turning a Downturn into an Upturn with Investment & Growth
12.1 Education & Skills
If you’re unemployed or underemployed, consider that an opportunity to enroll in a specialized certificate or online course. Invest in yourself so you’re a triple threat in the next job market.
12.2 Business & Personal Projects
When everyone else is pulling back, it’s prime time to double down. Invest in your brand, your YouTube channel, or your small business expansions.
12.3 Personal Growth
Therapy, coaching, personal fitness, spiritual retreats — whatever refuels your soul. The CFO in you can see intangible benefits as well. If it helps you avoid burnout or fosters new ideas, it’s worth it.
13. Coaching, Mentorship & Why “Friendtors” Matter
Don’t isolate. CFOs have entire finance teams, outside consultants, and accountants. You can have your own circle, too:
Coaches: Business, leadership, or finance coaches can help you spot blind spots and strategize effectively.
Mentors: Maybe an older colleague who’s already navigated multiple recessions or big career shifts.
Friendtors: That friend who’s not exactly a mentor or a colleague but is wise in some domain. They might not have the formal “title,” but they’ve got the perspective you need.
If your best friend is that one who always calls you on your BS, keep them close. That’s basically free therapy plus a tough love coach. Maybe consider being a little nicer to them and buying them some lunch.
14. Final Thoughts: The Comedy of Finding Freedom
Let’s face it: half of adulthood is winging it with spreadsheets, coffee, and the occasional meltdown. But if you can systematically carve out 5–10 years of expenses — your “Finance Umbrella” — the meltdown frequency plummets because you realize you have options.
You’re not trapped in that job or city. You’re choosing it, or you’re choosing to leave it. That’s huge.
One day, you’ll look back and laugh at the memory of being terrified about letting go of that overpriced apartment. Or you’ll laugh at how you used to dread corporate jokes about synergy. Because once you have your runway, you also have the luxury of humor and the audacity to design your life.
15. CTA: Bring Me Your Finance, Leadership & Business Woes
If you're staring down a pivot — or just want more leverage in life — I'm here to help.
Whether you're figuring out your next move, launching something new, or managing a multi-million dollar problem you can’t Google your way out of, here's how I help:
Fractional CFO & Finance Coaching
No more guesswork. I’ll help you optimize finances, scale smart, and build a cash runway that buys you time and freedom.
Leadership & Founder Coaching
Because the moment you decide to scale, pivot, or hire a team, you need more than hustle — you need strategy, clarity, and systems that don’t burn you out.
Strategic Advisory
Want a CPA + MBA with Google + Deloitte chops to walk through a deal, design a roadmap, or help your org level up? Let’s talk shop.
Technical Accounting Expertise
Don’t let the market (or a layoff) dictate your next chapter. Raise your Finance Umbrella. Be your own CFO. Run your life like the enterprise it is.
And hey — if you’ve read this far, you’re either serious about freedom… or impressively bored. Either way, let’s connect.
