How a Blow Fund Can Help Prevent You From Blowing Your Budget

I’m never going to blow another of my dollars, as long as I live!

Ever said that? What do you think the chances are that you can truly be super-smart, super-careful with your money from here on out, every day of your life?

Probably not very good.

The reality is that there is something in us that likes to cut loose every now and then. We like to buy stuff that we don’t absolutely need, but that we want. And there’s not necessarily wrong with that – as long you’re in control of your money.

Enter: the blow-fund.

Blow fund

The blow-fund is something that you can include in your budget to keep your not-so-smart-but-totally-fun purchases from messing up your budget. The blow-fund is a small amount of money that you set aside each pay-period that you dedicate simply to blow on whatever you want.

Sound wasteful? It’s not. Here are three reasons that a blow-fund might save you from blowing your budget.

One: Stuff happens

You know something unplanned is going to catch your eye. Maybe it’ll be tickets to a new movie, a new app, or a new toy for your child. You can’t tell what it will be, but you can know that it will come up sooner or later.

Rather than be blindsided by it, plan for it with a blow fund. It’s a small buffer that can help you anticipate surprises before they happen.

Two: An emergency fund for your emergency fund

Your blow fund can also act as an emergency fund for your emergency fund. If you add to your blow-fund regularly and end up not coming across something that you want to spend it on, your blow-fund could function as a secondary emergency fund. Just one more source of income that could give you everything you need to get through the time of difficulty without beating up your financial life too badly.

Three: It encourages savings

Without a blow-fund, the temptation to take from a savings account when something unexpected or fun pops up can be tempting. And if you do decide to give into temptation, then you can fall into a spiral of guilt – guilt that may make you want to spend even more. But with a blow-fund, you don’t have to beat yourself up – you already planned for it, so you can just focus on enjoying that movie, trip to the fro-yo place, or dining experience.

The next time you sit down with your budget, carve out a little space for your blow-fund. It will help you when unexpected things pop up. It will remove stress and guilt from your finances. And after all, isn’t that the whole point of a budget?

20 thoughts on “How a Blow Fund Can Help Prevent You From Blowing Your Budget

  1. A “Blow Fund” also gives you the “permission” to buy something completely unnecessary. Giving yourself that permission gives you the feeling that your finances aren’t tying you down or holding you back. After splurging just a little, I always feel much more motivated to keep the rest of my finances in tip top shape.

  2. Not a bad idea! I had to dip into our emergency fund in Q1 due to hubster’s lower variable income. Now I need to get it back up to where it was and beyond. My target was 10K but now I’m going to aim for 15K. We also have some additional funds in TFSA’s for bigger job loss type emergencies.

  3. Kathy says:

    A few years back, my husband and I carved out $100 a month in the budget for each of us to spend however we want, no questions asked or explanations expected. If I wanted to buy new earrings…fine and dandy. If he wanted a odometer for his bike….go get that puppy! So far I have $3000 in my fund and he isn’t far behind. Funny thing is, now that we have the money to buy “anything”, there isn’t much we want.

  4. My favorite part of the budget! lol. My wife and I never felt like we could spend money on ourselves until we had a blow fund. It’s great! Plus, if you save it up, you won’t feel bad buying more expensive things.

  5. I don’t have a “blow fund” but I also don’t technically have a budget. I track my spending month-to-month and make sure everything is around what I would expect it to be. When my wife and I do go out with friends we typically justify spending money on food, drinks, or other “fun” expenses by telling ourselves that we don’t spend money on going out all that often.

  6. I have a blow fund myself. I call it “Things for Aldo” I throw in there $50 every month and since I’ve been extremely frugal lately, the fund just keeps growing. The great thing about having a blow fund is that I always wanted to get a climbing rope – I love rock climbing – but never did because those babies are expensive, but I looked into my “Things for Aldo” fund and saw that I had enough for the rope and bought it! Didn’t have to use my credit card, my emergency fund, or sell a kidney for it.

    p.s. I used to call it “blow fund” but changed it to “Things for Aldo” when my girlfriend asked if I was saving money for cocaine… hahaha true story.

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