Updated: Sep 30, 2021
All Bills and No Fun Makes a Very Dull Budget. Here’s How to Do Better
by Nicole Dow
The term “fun money” means different things to different people. You might think of it as money for entertainment or eating out. It could be your growing vacation fund or the cash you hide from your spouse to support your shoe shopping addiction. The money you spend on a painting class or round of golf could fall into this category.
Essentially, fun money is what you spend to enjoy yourself. Working just to pay bills — and budgeting only to stay on top of financial obligations — gets old fast. Instead of depriving yourself of what brings you joy, including some fun money in your budget, will give you a more balanced financial life.
Preston D. Cherry, MS, CFP ® suggests:
1. Fun money helps motivate you to stick to your financial plan.
2. Pair serious financial goals with rewards that are fun.
3. Realistically, you will not be able to fully accomplish all of your want-based goals.
4. Value and priority help shift your mindset from what you can’t do to what you can do.