Why You Need a “Fun Fund” in Your Budget
When people hear the word “budget,” they often imagine strict rules, colour-coded spreadsheets, and absolutely no room for joy.
But here’s the thing: a budget that doesn’t leave space for fun is a budget that’s going to fail.
That’s where the Fun Fund comes in.
What Is a Fun Fund?
A Fun Fund is a portion of your budget set aside specifically for things that bring you joy—whether that’s a dinner out with friends, a concert ticket, a weekend getaway, or a new pair of shoes you’ve had your eye on.
It’s guilt-free spending money. And yes, you can have that and be responsible with your finances.
Why It Matters
If your budget feels like nothing but bills, savings, and “no” to everything else, you’re eventually going to rebel against it. That’s just human nature. A Fun Fund lets you enjoy life now while still taking care of your future.
It also reduces impulse spending. Knowing you already have money set aside for fun makes you more intentional with it—you’ll think about what will bring you the most joy instead of making random purchases.
How Much Should You Save?
There’s no one-size-fits-all answer, but a common starting point is 5–10% of your monthly income.
If you’re paying off debt or working toward a big savings goal, you might start on the lower end. If you’re in a comfortable place financially, you can increase it. The key is to pick an amount that lets you enjoy life without holding you back from your bigger financial goals.
How to Make It Work
Separate the Money – Put your Fun Fund in its own account or keep it as cash so it’s easy to track.
Decide What Counts – For some people, it’s only for “extras” like hobbies or entertainment. For others, it’s also for personal splurges like a haircut at a fancy salon.
Actually Use It – The point is to enjoy it! Don’t feel guilty for spending it—that’s what it’s there for.
The Bottom Line
A Fun Fund isn’t “wasting” money—it’s budgeting for happiness. By building joy into your financial plan, you’re far more likely to stick with it for the long haul.
