Using a Cash Envelope System for “Fun Money”

Fun Money

Where is the little slice of your budget that you set aside each month to really 'Treat Yo' Self'?  If you're first getting started on your budgeting adventure, you might have only a few dollars of fun money each month.  But that's ok!  Jut ask the old-timers around here... Just having a category that is dedicated to life's little indulgences can make sticking to a budget so much more bearable!  

How Do We Spend Our Fun Money?

We use our fun money for these types of purchases:

  • Coffee 
  • Adventures out with Friends
  • Manicures & Pedicures
  • Playing Golf
  • Hobbies
  • Miscellaneous Personal Indulgences

Saving Up For Larger Fun Purchases

I tend to use a fair amount of my Fun Money on board games and card games and sometimes squirrel away several months worth of fun money to build up to larger purchases such as 3D printer or a fine Ukulele. (See our Post on “Sinking Funds” if you are interested in how to save up for some of these larger expenses.)

Find What Works Best For You

A friend of mine tends to spend her fun money on going out with friends for dinner and clothing purchases.  She actually uses a single envelope for Fun Money + Clothing Money, as she treats them interchangeably… one month she might find herself with several opportunities to go out for dessert or coffee, and the next month she turns her attention to a great set of clothes on the clearance rack.

The beauty of the cash envelopes is you can really customize them to your own spending habits, and find what works best for you and your family.

 

The True Joy Of Fun Money

We enjoy the cash envelope system for managing our Fun Money because it allows each of us to maintain a tiny little slice of the budget to use at our own discretion. NO judgment, NO worries that your spouse is spending too much money on “useless” things, or a monthly race to see who can spend the account down to zero first.

Nope, instead the agreed-upon amount is simply added to each person's envelope at the beginning of the month, and if the spouse wants to spend or save every cent of it – that’s up to them!  So, whether it is spent on coffee, margaritas, or anything in between, it’s spent without the guilt or wonder if you are wreaking the budget – because it’s already been accounted for.

Other Articles In Our 12-Part Series

If you’ve Enjoyed this Look into How we use our Cash Envelope System for Budgeting, you can take a look at the 11 other categories that we have had the most success with here:

  1. "Fun Money"
  2. Clothing - COMING FALL 2019
  3. Going Out to Eat  - COMING FALL 2019
  4. Gifts  - COMING FALL 2019
  5. Miscellaneous  - COMING FALL 2019
  6. Date Night  - COMING FALL 2019
  7. Children’s Allowances  - COMING FALL 2019
  8. Groceries  - COMING FALL 2019
  9. Kid’s Clothing  - COMING FALL 2019
  10. Family Activities – Movies, Mini-Golf & Other Adventures  - COMING FALL 2019
  11. Savings  - COMING FALL 2019
  12. For Next’s Month’s Credit Card Payment  - COMING FALL 2019

Thanks for joining us for this 12 part series, tune in next week for the next installment. If you think a Cash Envelope System might be a good solution for your finances, then our Set of 12 might be just perfect for you.

Until next time, Happy Budgeting!

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