Create a Fun Fund
If you are going to create a fun fund, though, you can’t have it detract from your other financial goals. You still need a solid emergency fund, and you need to have little debt. It is also important to save for retirement. With all these demands on your pocketbook, where will you find the money for your fun fund?
The answer: Supplemental income. There are a number of things you can do to help fund your lifestyle. You can start a side business, work a part-time job or monetize a web site. Use your income from a side hustle to build up your fun fund. Once you get a regular stream of income going into your fun fund, you can begin to dip into.
Put Together Your Own Lifestyle Dividend Portfolio
If you have the option, arrange to have your payouts directly deposited into a high-yield account. If you are paid by check, deposit those dividends into the high-yield account as soon as possible. When you create a lifestyle dividend portfolio, all of the money should go right into your fun fund. That way, it grows at a relatively high yield (for cash), and is liquid so that you have easy access to it when you are ready for it.