What is Fun Money? How to Enjoy Guilt-Free Spending
What You Need to Know About fun money
Fun money is guilt-free spending money intentionally set aside that supports your financial and emotional wellness.
Fun money helps make budgets sustainable by allowing for intentional, values-based, guilt-free spending.
It can help reduce spending guilt, increase satisfaction, and your ability to stick with a spending plan
Why Fun Spending Isn’t Frivolous
Sticking to a rigid budget can feel suffocating. If you’ve ever felt like your spending plan was more punishment than empowerment, that might be a sign that:
Your budget needs a little reworking, or
You need more room for joy.
Spending on things that make you happy isn't just emotionally rewarding, it’s biologically rewarding. When you buy something fun, your brain lights up with feel-good chemicals like dopamine, serotonin, oxytocin, and even endorphins. The rush is very real.
Beyond the emotional and the biological, as a financial therapist, I want to remind you that spending in alignment with your values is a cornerstone of financial wellness. That’s where a fun money budget comes in.
What Is Fun Money?
If emergency funds are for emergencies, then fun money is for joy. Think of it as your guilt-free spending account.
After you’ve covered essentials and contributed to your goals, an amount of money goes to your fun money fund.
This fund is for things that make you smile: whether it’s a monthly massage, a trip to the movies, or a little online shopping spree. The point is, this money is yours to use how you see fit. The key here is that you built in a financial buffer to allow you to indulge without feeling like you have to rigidly track every penny or adhere to someone else’s financial judgment.
A Peek Into My Real-Life Fun Budget
My partner and I have used a fun money fund for over 18 years. Here’s how it works for us:
At the start of each month, we each get a set amount of money for fun.
We spend it however we want: spa days, books, that bag I’ve been eyeing.
When our fun money accounts are empty, that’s it! We have to wait until the next month to get our fund replenished
We initially used cash (and yes, I still got a rush when getting money from the ATM, like a grown-up allowance), but now we use digital envelopes or savings accounts.
This practice has helped reduce financial tension in our relationship and encouraged us to maintain financial autonomy within our partnership. It’s been one of our most sustainable and joyful money routines, and it’s not going anywhere.
Four Fun Money Budget Tips
1. Treat your Fun Money Fund like it sounds
A fun money fund should come after you've covered the essential expenses, like rent, bills, groceries, and contributions to your savings or debt repayment.
While you need to focus on a financial foundation, you don’t need to be debt-free or have six months of expenses to have a fun money account. If you’re working toward a financial goal like an emergency fund, try a split approach: for every $90 of savings, set aside $10 for guilt-free spending. This strategy works well if you’re feeling deprived or burnt out on budgeting. Giving yourself permission to enjoy just a small percentage can go a long way.
2. Decide How Much Fun Money You Need
Wondering how much fun money per month makes sense? That depends! Here are a few ideas to help you decide how much fun money you should set aside for yourself:
Use a percentage of your income (e.g., 2–5% of take-home pay)
Set a flat monthly amount that adjusts with your financial seasons
Reframe your "entertainment" or "miscellaneous" line item as a fun budget
3. Use Tech to Your Advantage
I love financial automation, and using fintech tools are especially helpful if you have ADHD or are an impulse spender. Even if you aren’t, what’s better than letting tech do the heavy lifting for you and reducing the amount of manual time you spend on your finances?
Some ideas to help you add to your fun money account:
Open a high-yield savings account if you like to let it build up to help you
Use roundups to passively save small amounts. These work by rounding up your purchases to the nearest dollar, and putting the “spare change” into an account of your choice (in this case, your fun money account)
Include credit card cash back or rewards points in the fun!
Set up auto-transfers to your fun account each payday
You might also consider giving your fun money account a playful name: “Treat Yo’ Self,” “Dopamine Dollars,” or “Joy Jar.” A name that makes you smile can help reinforce that this money is meant to be enjoyed.
4. Spend in Alignment With Your Values
Your fun money fund isn’t just for impulse buys. And you don’t have to spend it all each month just because you have it. Instead, use it on what truly energizes you.
A couple of helpful filtering questions before you spend your dopamine dollars: “Does this make me feel good, grounded, and joyful?” And, “Will I still feel good about this tomorrow?”
Fun ways to spend money are everywhere, but what matters most is that you use it in a way that is fun to you. If you love travel, save your fun money for a weekend getaway. If you’re an introvert who loves staying close to home, maybe it’s books, plants, or cozy blankets.
Why a Fun Budget Helps You Stick With Your Financial Plan
Having a fun money fund provides you with both structure and flexibility. It helps reduce the “all or nothing” thinking that leads to burnout and binge-spending. This account creates a built-in way to enjoy your money without guilt.
Fun Money in Relationships
Having a fun money fund is a game-changer in relationships. Whether you share finances fully, partially, or not at all, having individual spending money can reduce resentment and increase autonomy. It allows each person to enjoy their money in a way that feels right for them, without having to justify purchases or negotiate every latte or impulse buy.
Over time, this practice can reduce tension around spending, promote mutual respect, and even enhance intimacy by establishing clear, respectful boundaries. You each get to say, “This is mine, and I get to enjoy it,” and you get the peace of mind knowing that no matter how your partner uses their fun money, your goals are still on track. Not only does your financial life get to flourish, but your relationship can thrive, too.
Fun Money is Financial Wellness
Fun money doesn't mean abandoning your financial goals; it's about giving yourself permission to enjoy your money while staying intentional. Whether you spend it on concert tickets, another adorable dog toy you knew your pup would love, or ceremonial-grade matcha, what matters is that it feels good to you.
Having a fun money account can decrease spending guilt because you’ve built in an impromptu spending budget. It can also make sticking to your plan way more enjoyable when you've got some cash set aside for the little things that make you happy. And, many people (myself included!) believe that building in flexibility and spontaneity to a spending plan makes it easier to stick with.
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