The line can get blurry pretty quickly as to what qualifies as an actual investment. For my money, an investment requires a stated goal or objective before it’s made. Absent that qualification, we’re probably just telling ourselves a story to justify our purchase.

For instance…

Did you really buy crypto as a way of diversifying your overall portfolio? Or did you YOLO right into it after getting caught up in all the attention it’s been receiving recently?

Are you really holding those IPO shares to increase your technology exposure? Or are you just taking a chance on them because you’re secretly hoping that they rocketship to the moon?

Will custom tennis rackets really improve your tennis game? Or do you need to move your feet more and get in a better position to hit the ball, Bri? 

(Sorry, there goes my inner monologue seeping out again!)

Every money decision you make does not have to be responsible and disciplined. 

This is why I’m an advocate of creating your own fun-folio.

A fun-folio is a small percentage of your overall net worth that you set aside, separate from your cash cushion and longer-term investments, to scratch that fun itch when it arises.

Some examples you might use your fun-folio for might include:

• Buying cryptocurrencies or IPO shares...for fun

• Playing poker online with friends...for fun

• Building up that wine cellar or whisky collection...for fun

• An annual girls/guys trip with old friends...for fun

• Or nerding out on custom tennis rackets...for fun (No, still just me?)

Once you’ve got a plan in place to address your long-term financial well-being, creating your own fun-folio also acts like a release valve of sorts. It's a line of defense that allows you to have some fun and to scratch that itch while preventing you from taking unnecessary risk with your longer-term money. Your fun-folio helps you more clearly define what’s an investment for the future and what’s just for fun.

Like most things in life, it’s all about finding the happy medium that works best for you personally. So if you haven’t already, consider carving out and creating your own fun-folio. With the arrival of summer on our doorstep, right now is the perfect time to give yourself permission to start having some (responsible!) fun.

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