Why You Need A Fun Money In Your Budget? Is it essential?

Couples who agree to create fun money in their family budget have less quarrels than those who keep it loose

Although I always recommend couples to keep their hands tight to save for kids education or for retirements

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using fun money to buy whatever you want

But I am a big fan of keeping money to spend on your leisure in your budget

Below I will discuss it in details as it is something to essential to pursue

What is fun money?

Fun money in simple words what money you keep aside for your own leisure

You love fish tanks but your spouse perceives it as a waste of money

Or you want to try fish pedicure – does it make any sense?

Whatever you like you still can have a channel in your budget to do so

What is called fun money to stop feeling guilty doing or buying it

What is the percentage of money to spend on fun?

Simple answer is any percentage between 5% to 10%

You should not include the things you do together for entertainment

For example, if you both like going to theater, this is not money for fun

It should be under entertainment

Usually fun money is anything you have deep passion to spend money on and you are worried of feeling guilty doing so

Why it is important to have money for your own leisure?

I spoke earlier about how to negotiate with your spouse who refuses budget commitment?

I discussed how couples have different background and different perception about money and saving

Having said that, for each couple to play it safe

It is recommended to agree on all the expenses in your budget

Leave a room for each spouse to do whatever under the fun money bracket

Believe it or now, those who succeed to keep their budget adjusted and not drifting in deficit are the ones who assign money for fun under their budgets

What is the importance of having Fun Money in your budget?

Restrictive budget can work for you for short period of time like a month or two

But in the long term, you can never live your life like that

You will end up going crazy or depressed

Totally I don't recommend doing that

Consider adding fun money to your budget to bring joy to yourself

Every milestone you achieve in your budget, use your leisure money to pamper yourself

For example, to avoid binge shopping, track your expenses on daily bases

Review your spending every week and see if you are on track then use your allocated fun money for the week to compensate you for your success

Do you have to track where your money was spent on?

Some people think if they never go beyond their allocated percentage for fun money

Why do they care to track where their leisure money was spent on

I highly recommend to track where you spend your money on fun

This can be beneficial for you, but why?

Well, if you spend money hanging out with your friends on alcoholic drinks

You can arrange with your friends to visit you at home and spend time together

You can rotate the visits, all of you would save money and still enjoy your time together

What are the fun things to spend money on?

You are not tied to specific things to buy

You can buy anything you want for yourself

Don't feel guilty as long as you are spending your leisure money within the agreed range

You can save it for a big purchase you are dreaming of


Michael launched Wealth of Geeks to make personal finance fun. He has worked in personal finance for over 20 years, helping families reduce taxes, increase their income, and save for retirement. Michael is passionate about personal finance, side hustles, and all things geeky.