When I first entered retirement, I did what every financial planner recommends: I stuck to the essentials. I had a strict monthly budget, minimized unnecessary expenses, and told myself that if I just stayed disciplined, I’d be fine.
And I was. At least, financially.
But after six months of saying “no” to dinners out, skipping trips with friends, and shelving hobbies I loved, I started feeling… miserable. I had saved all these years to be secure, but somehow, I was missing the very thing I’d hoped retirement would bring—joy.
That’s when I created my “Fun Fund”—and it saved not just my retirement, but my happiness.
In this article, I’ll share how a small shift in mindset (and money) helped me reclaim the retirement I dreamed of—and how you can create a Fun Fund of your own.
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The Problem: Too Much Focus on “Needs”
Most retirement plans emphasize security—covering the basics, minimizing risk, and stretching your savings as far as possible. And while that’s undeniably important, many retirees end up with a budget that accounts for everything… except living.
I was no different. I had a plan for every “need”:
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Housing ✅
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Food ✅
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Insurance ✅
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Medical expenses ✅
What I didn’t budget for?
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A spontaneous lunch with friends
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A weekend getaway
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Art supplies for the painting hobby I used to love
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Even a new outfit that wasn’t “on sale”
🧾 The Result?
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Guilt every time I spent on something “non-essential”
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Saying “no” to things that once brought me joy
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Feeling trapped by a budget that was supposed to set me free
“I was surviving, not thriving. And I realized—I didn’t retire just to pay bills and stay home.”
It became clear that cutting out “fun” to play it safe was costing me my happiness. Retirement isn’t just about financial health—it’s about emotional well-being, too.
How the Fun Fund Came to Life
The turning point came on a rainy Wednesday afternoon.
I had just declined a last-minute invitation from a friend to go to a local jazz concert—because, of course, it “wasn’t in the budget.” As I sat on the couch, feeling disappointed and disconnected, it hit me: I was living in fear of spending money, even though I had saved for this very stage of life.
That night, my partner gently asked,
“What are we actually saving for, if we’re not enjoying any of it?”
That one question shifted everything.
We sat down with our retirement budget and carved out a small slice just for joy—what we soon began calling the “Fun Fund.” It wasn’t huge. We started with $150 a month, no strings attached. It was ours to use however we wanted, with no guilt.
🎉 The First Time We Used It:
We took a weekend drive to a nearby lake town, stayed in a cozy inn, and ate the best seafood dinner we’d had in years. We came home lighter, happier, and more connected than we’d felt in months.
And that’s when I realized: this little fund had saved my retirement.
What Goes Into a Fun Fund
Your Fun Fund doesn’t need to be extravagant—it just needs to be intentional. It’s a portion of your retirement budget reserved for the things that make you feel alive, even if they don’t fall into the traditional “needs” category.
🎯 Common Fun Fund Categories:
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Weekend getaways or short trips
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Dining out with friends
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Concerts, theater, or local events
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Hobbies and creative supplies
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Gifts for grandchildren or surprise treats for your partner
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Courses, clubs, or memberships you’re excited about
Even $50–$200/month can go a long way when you’re spending it with joy and purpose.
“Knowing I had money set aside just for fun changed how I looked at my budget—it became a plan for living, not just surviving.”
📊 Example: Retirement Budget With a Fun Fund
| Category | Monthly Amount | % of Budget |
|---|---|---|
| Housing & Utilities | $1,200 | 40% |
| Healthcare | $500 | 17% |
| Groceries | $400 | 13% |
| Transportation | $250 | 8% |
| Emergency Savings | $300 | 10% |
| Fun Fund | $150 | 5% |
| Miscellaneous | $200 | 7% |
The Fun Fund doesn’t derail your budget—it completes it. It’s the reminder that you worked hard to enjoy this stage of life—not just to make it through.
Why the Fun Fund Actually Saved Retirement
At first, it felt strange to label spending as “fun” in a budget. But what started as a modest line item quickly became a lifeline for my well-being. The Fun Fund didn’t just improve my lifestyle—it transformed how I felt about retirement.
💡 Here’s What Changed:
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I stopped saying no out of guilt, and started saying yes with intention
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I looked forward to the month ahead—not just because of the calendar, but because I knew I had joy built in
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I reconnected with friends, hobbies, and parts of myself I hadn’t seen in years
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My partner and I felt closer—because we had things to enjoy, not just manage
“We used our Fun Fund for a trip to the Grand Canyon. It had been on our list for 20 years. That trip made us feel young again—adventurous, connected, alive.”
– Marian & Paul S., retired at 66
And here’s the thing: the Fun Fund didn’t break the budget. It actually made me more committed to the rest of it—because now, the budget wasn’t just about protection. It was about purpose.
This small shift gave retirement texture, excitement, and fulfillment. It saved me from a future that was safe—but joyless.
Tips for Starting Your Own Fun Fund
Starting a Fun Fund doesn’t require a financial overhaul—just a shift in priorities. Whether you’re on a tight budget or have plenty of flexibility, the key is to intentionally carve out space for joy.
✅ How to Get Started:
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Pick an amount that feels “safe” but satisfying.
Start small—$50 or $100 a month. It’s not about the number; it’s about giving yourself permission. -
Create a separate place for it.
Open a dedicated savings account, use a cash envelope, or set up an automatic transfer. Keeping it separate prevents guilt or confusion. -
Be clear about what it’s for.
Fun doesn’t have to be expensive—just meaningful. Write down a few things that bring you joy and make them your fund’s mission. -
Plan your fun.
Make a list of activities or experiences you’ve postponed. Schedule one each month. Anticipation is half the joy. -
Celebrate using it!
This isn’t a slush fund—it’s a reward for decades of hard work. When you spend from it, feel good. That’s what it’s for.
“I was nervous to spend ‘extra’ money at first. But when I used my Fun Fund for a pottery class, it lit something up in me. That one class turned into a weekly joy.”
– Jerome T., 68
Your Fun Fund is a small change with big emotional returns. Start where you are, and let it grow with your joy.
Final Thoughts
Retirement isn’t just about security—it’s about freedom, fulfillment, and fun. While it’s wise to plan for your needs, you shouldn’t forget the things that make life worth living. That’s what the Fun Fund is all about.
You didn’t save for decades just to stay safe—you saved to enjoy.
Creating space in your budget for happiness, spontaneity, and connection can be the difference between simply surviving retirement and truly living it. And it doesn’t take a fortune—just a little intention and permission to spend with joy.
Looking for more smart strategies to make retirement work for your life? Visit RetiredLifeTips.com for fresh, practical Lifestyle tips for retirees and guidance that puts joy back into your financial plan.
