Fun Money — Allow Yourself to Breathe and Take in the View
In January, we built our basecamp. We mapped out the year, set our financial intentions, and committed to the climb. In February, we focused on building our safety net — the cash reserves that catch us when life, as it always does, throws something unexpected in our path.
But here’s something every experienced climber knows that the guidebooks don’t always tell you. The mountain will break you if you never stop to breathe. If you put your head down and grind every single day without a moment to look up and take in the view, you won’t make it to the top. Not because the mountain beat you, but because you forgot why you started climbing in the first place.
That’s what this week is about. Fun Money.
Why Fun Money Is Not Optional
I want to be direct with you. Fun Money is not a reward for when you’ve “made it.” It’s not something you allow yourself after you’ve checked every financial box. Fun Money is a required line item in your budget — as essential as your rent, your groceries, and your emergency fund.
Here’s why. One of the most common reasons people abandon their financial climb isn’t because they lack discipline or intelligence. It’s because the journey feels like punishment. Every dollar is accounted for, every purchase is scrutinized, every impulse is denied. That works for about three weeks before human nature wins and the budget gets thrown out the window entirely.
The most successful financial plans I’ve ever seen — and after nearly three decades of living, studying, and advising on personal finance, I’ve seen a lot of them — are the ones that build enjoyment into the system from the beginning. Not as an afterthought. Not as a cheat day. As a planned, intentional, guilt-free category in the budget.
At Monthly Money, we’re not just about reaching the top. We’re about enjoying the climb. Because what’s the point of summiting a mountain you hated every step of?
Where This Idea Comes From
I’ll be honest with you about something personal. I grew up in a home where money was a constant source of tension. I watched my parents argue about finances more times than I can count, and eventually that financial stress contributed to their divorce. I was eleven years old when our family split apart, and I made a promise to myself that day — I would learn everything I could about money so I would never feel that powerless again.
But I also made a quieter promise. That when I built my own family, money would not be the thing that tore us apart.
My wife and I have been together for a long time, and I won’t pretend we’ve never had financial disagreements. Every couple does. But one of the systems that has genuinely protected our marriage — not just our budget — is Fun Money. We built it into our financial plan from the beginning, and it has diffused more potential arguments than I can count.
How the System Actually Works
Here’s the practical framework my wife and I use, and that I recommend as a starting point for any couple.
We set aside 3% of our combined net income — that’s take home pay after taxes — every single month. That 3% gets split in half. Half goes into her individual savings account. Half goes into mine. It happens automatically through a scheduled transfer so we never have to think about it or negotiate it in the moment.
That money is earmarked for one purpose only — to spend on whatever each of us finds meaningful, no questions asked and no justification required. If she wants to buy a piece of art for the living room or a pair of earrings I’d never understand the appeal of, that comes from her Fun Money. If I want to book a fly fishing trip or a river rafting adventure, that comes from mine. We don’t debate it. We don’t negotiate it. We simply say “it’s Fun Money” and move on.
I cannot overstate how many arguments that three word phrase has ended before they ever started.
Now, 3% is a baseline and a starting point — not a rule carved in stone. The best percentage is the one that two spouses can genuinely agree on and actually afford. If 3% of your net income works out to $100 a month, that’s $50 each. That might not sound like much, but here’s the beauty of the system — you don’t have to spend it every month.
I am a natural saver. There have been stretches of six months or more where I didn’t touch my Fun Money account at all, just letting it accumulate quietly while I focused on other things. And then one day I’d look at that balance and book something that genuinely filled my soul — a day of fly fishing in a mountain river, a challenging hiking expedition, an outdoor experience that reminded me why I work as hard as I do. I don’t place much value on material possessions. What I value is experience, adventure, and time in the wild. My Fun Money account makes that possible without a single dollar coming out of our family budget or a single conversation that starts with “do we really need to spend money on that?”
My wife has her version of that same freedom. And because we both have it, we’ve never had to fight over it.
What This Looks Like in Your Budget
If you’re single, Fun Money still belongs in your budget — it just looks a little different. It’s the category that gives you permission to spend on what brings you joy without derailing everything else you’re building. It’s the concert ticket, the weekend trip, the dinner out with friends that doesn’t send you into a guilt spiral afterward.
The Monthly Money Method is built around capturing the difference between what comes in and what goes out, then deploying that difference strategically. Fun Money is a strategic deployment. It’s not waste. It’s not weakness. It’s the investment you make in your own sustainability as a person who is playing a very long financial game.
The climbers who make it to the top are not the ones who never rest. They’re the ones who know when to rest, how long to rest, and how to use those moments to come back stronger for the next section of the climb.
Your Assignment This Month
Look at your current budget and find Fun Money. If it’s not there, add it. Start with 3% of your monthly net income and divide it equally if you have a spouse or partner. Set up an automatic transfer to a separate savings account on the same day every month — payday works well. Name the account something that makes you smile. And then give yourself genuine permission to spend it on whatever matters most to you, without guilt and without explanation.
The climb is long. The view along the way is part of the reward.
See you at the top.
