What’s the leading cause of breakups in marriages and relationships? Money. I know you’ve been in this situation before. You want an X-Box or a new purse and your partner doesn’t think you need it. Of course you don’t need it, but that’s not the point. You’re working your ass off to buy things that you don’t necessarily need, shouldn’t you be able to spend your money on whatever you want?

That, my friends, is a trick question. Yes you should be able to spend your money on whatever YOU want. But when you are in a relationship it is no longer about YOU is it? It’s about BOTH of you. It’s these little things that cause tension in a relationship that eventually escalates into something more than it needs to be.

That’s why my wife and I have setup hobby funds. A hobby fund is basically an amount of money you get each month to spend on whatever the hell you want (but don’t need). Been eyeing a new pair of boots? As long as you have enough money in your hobby fund, you can go ahead and get them. No questions asked. You can spend your hobby fund allowance every month if you want to, or you can save it up and make a big purchase.

How much you and your partner get is a decision you’ll both have to make. My wife and I get $50 each month. It all depends on what your current financial situation is.

The biggest question I get asked is, “what kind of purchase qualifies as a hobby fund purchase?”

Those are boundaries that you’ll need to setup with each other. But I do have some suggestions and recommendations for you:

Anything that you need for your day to day life does not come out of the hobby fund. That includes makeup, cologne/perfume, business clothing, etc.

What does qualify as a hobby fund purchase is anything that you want but don’t need. The one obstacle you’ll find yourself in every now and then is when you both want something. Whose hobby fund does it come out of? For my wife and I, if we both want something it comes out of a separate budget we have setup (in the case of a concert we both want to see, it would be our entertainment fund – I’ll cover this and other funds in a later post).

I can’t tell you what the rules should be, it’s something that you’ll need to figure out as a team. Sit down and setup some rules around the fund with one another and find out what works best for your situation. I can tell you that having a hobby fund established will make both of your lives easier. Instead of “I can’t believe you bought that!” you’ll hear “I assume that came out of your hobby fund?” And trust me, that’s like music to your ears.

Related posts:

1. How to Budget: Entertainment Fund
2. Emergency Fund – Do You Have One?
3. The Secret to Credit Card Financial Freedom