Rarely do you hear 'fun' and finance in the same sentence, until now that is. A fun fund can be a great tool to assist you in working towards your financial goals. Read on to discover why you should set up a fun fund.
A fun fund refers to a predetermined amount of money that you set aside every month that goes towards fun activities you enjoy. This amount is separate from savings or money used to pay your bills. The amount is dependant on your personal situation and you do not have to drain it every month, only when you feel like it.
In this article, you will be introduced to the reasons why you should consider setting up a fun fund.
A fun fund is money that you set aside every month that goes towards activities you enjoy.
A fun fund can help you to stick to your budget
Knowing you have some funds set aside to go on a spontaneous dinner date or treat yourself to a new “toy” is likely to help to stay true to your budget. When budgets are too restrictive, people are less likely to stick to them. That is where a fun fund can really help!
Within the confines of a very restrictive budget, when people do one small thing outside of the plan, they are likely to continue overspending as a sort of revolt against but due to the constrictive nature of their finances. In this way, setting up a small amount you can use to enjoy your life is better for your finances and will help you better achieve your financial goals.
Forcing yourself to stick to that predetermined amount that you have set aside for fun works your self-control. Self-control is a muscle and the more you use it, the stronger it gets.
Moreover, stronger willpower will lead to positive outcomes in many varied aspects of your life, not just the financial ones.
Plan ahead and use your fun fund for concerts and other activities.
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You can better plan for your activities
As you watch the amounts in your fun fund grow, you can plan for your activities better. You can decide to delay your gratification to get a bigger payout later or to use the funds there are then. The point is you will be able to plan adequately.
It is good for your relationship
If you are in a relationship, setting up a fun fund will definitely be beneficial to your relationship. Many couples fight over money and having a fund where each party does not require the oversight of the other is likely to work towards reducing such tensions.