Fun money (update)

I decided to change the way to allocate fun money, from once a year to once a month.

• Original: split the difference after hitting the annual savings goal.
• New: allocate 5% of each regular income cycle and 50% – 60% of irregular income cycle.

Problem of fun money with “leftover” from annual savings:

1. Unable to forecast how much will be received, no clear goal.
2. Long wait time, easily side tracked by impulsive spending

With allocating in each income cycle, the purpose is to act as a reminder to refocus whatever the purchase is. There’s a goal to save towards to and cycles to evaluate the expense.