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What is a slush fund? Wikipedia defines a slush fund as "a colloquial term which has come to mean an auxiliary monetary account or reserve fund."
For me, my slush fund is kind of like an emergency savings account but for the fun stuff. Some people set aside separate savings account for vacations, cars or other occasional expenses. I am a big technology geek and buying the latest electronic gadget was one of the ways I wound up with a mountain of credit card debt.
These days, I still buy the occasional electronic gadget on a whim. Although, now the guilt is not there because I've already set aside money to cover the purchase. I just pull the cash from my slush fund.
Each month, I set aside $100 a month for the slush fund. A couple of weeks ago, I had the opportunity to take a last minute trip to the beach. The lodging was free and I only had to pay for food and drinks. I spent about $200 and I didn't have to pull the money from my regular budget and I didn't have to touch my emergency fund or regular savings. It was also nice to not have to worry about whether or not I could afford it. As long as I have money in the slush fund to cover the purchase, I can afford it. After all, that's what it's there for.
Do you have a slush fund? How much do you keep in the account?