mamaravesph's blog: Why Do I Need A "LEISURE FUND"?

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Do you love travelling a lot? Do you have a lot of money until the next promo flight comes along?

Are you so techie that every new iPad, iPhone or Samsung phone is a thrill? Are your hobbies eating up your savings account?

Then you need to put up a LEISURE FUND.

But what is leisure fund anyway? That crossed your mind? Well, let me introduce to you the fund I came up with for me and my family. This keeps me and my husband sane from all the stress and hardwork we do.

First, I assume you have already started or built your Emergency Fund. You cannot in any way start your leisure fund without having prioritized your Emergency fund. If you would like to know more about Emergency fund, please go to http://mamaravesph.blogspot.com/2014/10/why-do-i-need-emergency-fund.html

Leisure Fund is a stash of money you keep for fun and your own mental health. This is the money you pull out for expenses outside your monthly needs, savings for retirement fund, education fund and your emergency needs. You build this fund in your bank account as savings account, passbook account or time-deposits to access in case you need to replace an old gadget, an old PC or laptop, to buy or replace hobby equipment/tools, shopping for new clothes and shoes or simply to take a vacation. This fund I believe should be a separated fund from all the rest to keep you from overspending when you are way too much having fun.

So HOW MUCH do you need as Leisure Fund?

There are no exact figures. I, myself just keeps a modest amount to it. I keep an amount we usually spend on one vacation (airfare + hotel + food + recreational fees). But I don’t indulge on very frequent vacations. Once a year, maybe. With so many promo flights, I also have a hard time saying no to click and tap that iPad and book. But I have a strong will not to do it frequently.

My leisure fund has RULES also. And these I keep in mind. You may also do your own house rules, it's your fund anyway. So far, these are my rules for my leisure fund:

1. You cannot buy a new gadget if your gadget can still keep up with your tasks. If I get a gadget for free for keeping my mobile plan, that’s okay;

2. You cannot take a trip just because there is a promo fare;

3. You cannot take a trip more than once a year;

4. On shopping: If it’s not on sale, don’t panic buy and take time to think if it’s worth it;

5. Bend some rules every now and then and enjoy life (take note, I said every now and then);

6. You save back whatever you spent from that fund.

Do I deserve to have a LEISURE FUND?

I believe anyone who works hard deserves this fund. Anyone who doesn’t will have a hard time keeping his sanity intact. With all the toxic and stress you get from working to keep up with your expenses and savings, you deserve a break or some good things in life. So, just plan ahead, YOLO!

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