Uncategorized

3 Envelopes of Your New LIfe: Fun Fund

December 28, 2014

Last week I mentioned the 3 Envelopes of Your New Life that I truly wanted to share to you guys. The said envelopes have helped greatly in my financial journey and I am very glad that through my constant reading from other financial blogs, new knowledge is opened. I probably got the idea of this 3 Envelopes from a fellow blogger too but I truly forgot who he/she is since I have been doing the envelope system for a year now.


As the first envelope I mentioned a quick post on the Emergency Fund. I even discussed on the said envelope where you should put your emergency fund and also some tips on how to achieve one. I have received an impressive amount of support so thank you very much!

To continue on today I will be discussing the Fun Fund. Now you might have the idea when I say Fun that this is an envelope reserved for your hobbies, recreation and other personal matters. Well, that’s true but then the core of Fun Fund is often than not abused by others.

Fun Fund was supposed to be money you spend to satisfy your happiness and personal goals. If you love to travel, this could be the fund you need to reintroduce in your finances. Bloggers like me use this Fun Fund to fund our projects for you guys and same goes with an ordinary parent who wants to save some money for a trip abroad.

There Three Uses of Fun Fund (that I know of)

1. To fund something that could add value in your life. This includes short courses, gym membership, travelling and so on. Just anything that could give a much new meaning in your current state of mind.

2. To fund something that you have been putting off all your life. If you have been setting aside something like an idea or a dream and it includes a whole lot of money then the Fun Fund could be the answer you have been waiting for. This eliminates you in feeling guilty towards big purchases for you know that you are slowly but surely saving up for that thing.

3. To fund as backup for out-of-the-blue expenses. There are expenses that come unexpectedly that will put you in a bad situation financially. This could be a great use for your Fun Fund. I, for example, emptied our gas tank at home unknowingly. Thus, I was forced to shed money to buy a new gas tank or else we can’t cook. That amount is almost half of my daily rate at work so of course it was huge for me. Thankfully, my Fun Fund is secure so I get the amount there.

How do you save for a Fun Fund?

Unlike Emergency Fund that has a recommended maximum amount of worth 3-6 months of your expenses, Fun Fund will solely depend on you alone. How much do you want to save? I personally does this technique for my Fun Fund wherein I don’t withdraw all of my earnings in my payroll and leave a considerable amount every month. Now after almost 10 months or working, that Fun Fund is almost nearing half of my Emergency Fund which is very cool.

All you have to do is to be intentional. If its something you love then it might be worth the shot. Remember that the Fun Fund will always have to depend on your personal choice.

 
Other Applications of Fun Fund

  • If you are a makeup lover this could be your very fund to use on branded makeups like MAC, Nars and Bobbie Brown.
  • If you are a traveller this could be your fund for trip abroad.
  • If you are a techie person this could be your fund for big gadget purchases.
  • If you are a mother this could be your fund to create a holiday vacation with the family or to buy appliances.
  • If you are in a long term relationship leading to marriage this could be a great fund for your dream wedding preparation.


Ensuring a Fun Fund along your financial journey is highly advisable for the said fund more than the other two Envelopes of Your New Life is your source of motivation in life. This could open up new experiences and new lessons that you can cherish to. Remember the lesson on Spend Intelligently? Truly, a Fun Fund should be part of your goal this New Year.

Clariza Glino

Izza of SavingsPinay promotes financial literacy for the young and young at heart by providing insights and tips on budgeting, saving, investing and online entrepreneurship. Aside from this blog she also writes at www.izzaglino.com, a beauty and lifestyle blog for frugal Pinays and manages, www.izzagevents.com, a wedding and event business since 2011. For inquiries, topic suggestions or future collaborations email her at izza@savingspinay.ph

[ssba]