The past few financial decisions I have discussed have been ensuring you are prepared for the future. Whatever it may bring. This is a different tone. You can do everything in your power to set yourself up for the future, but you also need to take some time to enjoy, with Fun money! Living within your means is very doable, whilst setting yourself up for the future. You don’t have to limit your lifestyle now, just because you want a bit more freedom in the future.
This is the fourth post in the series of financial decisions to consider, and I am talking about “fun money”. I’m not telling you how to spend it, but I am suggesting how to manage it. Once you have your way of managing it, you can spend it however you like. Also, I am not a financial advisor. I recommend conducting your own research to tailor your money to work for you. However, your money is your money, so spend it however you wish. I’m very happy to share my experience, in the hope it may inspire the people who are looking for inspiration.
What is fun money?
This is the amount of cash you set aside to treat yourself. Maybe you plan to book a holiday/staycation, or an experience that makes memories. Maybe you want to be able to enjoy a guilt-free take out each month. It’s a pot of money that you have ready to spend on yourself, guilt free, to make the most of our existence. Life is actually really short, and we can’t guarantee that we will all make it to the end, where we can reap the rewards of our retirement. So, this is money you have to spend to make your existence a little bit more bearable.
Deep part:
You can’t just live for the future, you should enjoy now whilst its here. If you have the future planned, and working in the background, then you have done all you can for now.
Sometimes life just feels like there is no meaning to it. I have moments where it feels like all I do is work at a job, that doesn’t resonate with me. Live in an area, where I don’t feel a part of the community. And not know my purpose or my meaning to appreciate existing in the present day. The solution to this is “fun money”. I make time and money for things that make me feel alive. Things that make me feel value from living.
Fun money is not the only thing to bring more value to existing. There is family and relationships etc. But quite a bit of adulting is spent alone. Especially when you are trying to figure yourself out. Having that resource to treat yourself, is really refreshing. But it’s your choice.
How to prepare your fun money
As I have mentioned in my previous posts, a high yield savings account is very handy for these things. What you need is for it to be accessible, without penalties. The interest you earn on that balance will help you, as time passes. Putting in a set amount of your earnings in there, means you don’t have to think about it. Set it as a direct debit/standing order to a savings account.
There are some banks where you can open several savings pots in one account. This means you can split your money between specific things you want. Maybe you want to go to a spa every 3 months, and go on a holiday/staycation every 6 months. You can have two accounts with one bank, and split the money you send over between them.
Why do you need fun money?
Sometimes to do things that you enjoy or make memories, they cost money. And right now things cost quite a bit of money. Having some cash on the side for something to look forward to, is really helpful. Also, any money to soften the blow on treating yourself, can make the experience more enjoyable.
Booking in advanced can sometimes reduce the cost, so having he cash already available/accessible is always a better alternative. Using a credit card to take advantage of those benefits, and using the money saved up to pay it off, is a good way of doing it. You can also use the money from the account directly. But having it on the side for the treat, makes it that much sweeter.
What have I done so far?
I have been able to go on little staycations in the UK. Visiting different cities and experiencing what I can. I want to celebrate my birthday and other celebrations, because they mean something to me. So, I put money aside for those too. Things I have done before look like this:
- Travelled to London to watch 42nd Street the Musical
- Explored Leeds, Manchester and Blackpool for the culture.
- Took a helicopter ride, because the ticket was on offer, and I saw no reason to say no.
- I booked the hotel for my graduation, and paid for all my photos.
I look forward for my future, because of the things my fun money will bring. What will yours do?
Moral of my story:
- Fun money is meant to be spent – Treat yourself! To whatever you desire
- You are preparing for the future, so why not enjoy now in the meantime – Exactly!
- Keep it in a high yield savings account, so it can work in the background – Let your money work for you, whilst your enjoying spending it
- Life is too short to keep telling yourself “I will enjoy this later” – Our time here is limited, why not find something to enjoy it
- You can have a sense of pessimism and still find a way to enjoy life – Life sucks sometimes, and it’s inevitable. Fun money means you can treat yourself when those times hit.
