The Bad Mood Fund

Recently I attended one financial planning courses sponsored by my company. It was a short two days course that touched on personal financial planning. In this article, I will share my views on bad mood fund.

One thing I like about the course is that the instructors focused on educating the participants rather than pushing financial products. That was why I enjoyed the course because I did not have to second guess whether the instructors was biased in his recommendations or whether he was trying to hard sell his company’s financial products.

At the end of the course, I learned quite a few things and thought that I just have to blog it down and share with my readers. One key takeaway was the “The Bad Mood Fund”.


In life, there are always ups and downs. Most of us faced challenges and obstacles in our daily lives. As a result, we can sometimes ended up feeling bitter, frustrated and angry. One of the best ways to “cure” your negative feelings, whether you are a man or woman, would be retail therapy.

Nothing beats buying something to pamper yourself at the end of a miserable lousy day isn’t it? I mean we all live only once and I think it is important that we pamper ourselves every now and then. Otherwise, how to maintain our life motivation and jest? But we all know retail therapy can sometimes be fatal to our wallet. So how can we ensure that our retail therapy does not cripple our savings. One strategy is to set aside a Bad Mood Fund.

So how does a Bad Mood Fund works? Basically it means setting aside a portion of money from your monthly disposable income to support your retail therapy. It can be $200 or $300. The amount varies and depends on your spending power. There are no hard and fast rules and its all within your call.

So whenever you are in a bad mood, you activate this fund and splurge within this limits. Of course, there are months whereby you did not encounter bad moods, so you can bring over the amount to the next month. Having this Bad Mood fund can ensure that you do not spend irresponsibly when you are in lousy moods. It requires discipline and takes time to cultivate. But once you get the hang of it, it can bring balance to your emotion and financial well-being.

If you are married, it is essential that you discussed with your partner on setting this Bad Mood Fund in your family budget plans.  In fact, I shared this idea with my wife and established a Bad Mood Fund of $200 for her. This is to motivate her when she feel tired from taking care of our baby girl.

I hope you find the article above useful and consider setting a Bad Mood fund for yourselves or your close ones.

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Magically yours,

SG Wealth Builder

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