Include A 'Fun Fund' In Your Budget To Help You Stick To Your Financial Goals

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We've mentioned that one of the reasons personal budgets fail is because people don't remember to give themselves some spending money for entertainment or leisure purchases. Instead of trying to guess how much you'll spend every week or month on fun, set up a "fun fund" you can add to or drain depending on your mood.

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Over at US News Money, Erin Lowry explains that including a "fun fund" gives you a place you can stash money away for everything from a night at the movies to a luxury purchase, such as a new TV or game console. Consider setting up a "fund" in a separate account and then sending money over to it periodically. You can do this whenever you hit a financial windfall, but it's also a good idea to make sure you budget a little "fun" money every month so you can top off your fun fund, even if you don't plan to use it.

By sending the money over to a dedicated place, you can let it grow without looking at it, and it's not sitting in your primary account, tempting you to spend it on something impulsive. Lowry also explains why a fun fund in your budget can keep you from feeling left out or deprived. Hit the link below to read more.

Why You Need a "Fun Fund" In Your Budget [US News Money]


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