Why have one? Say you are a bit like me and think too much about spending money on certain activities/stuff and always have guilt about splurging on something which you may do without, even though they may give you immense pleasure, even for short term. How do you manage that guilt? Put in a different way, how do you convince yourself that the money you have, let’s say not spent but splurged, is you can well afford, the spending “guilt” is unfounded and you can let go the opportunity cost conundrum. The solution I found for me is to create a separate corpus. I will call it “Splurge Fund Corpus” (SFC henceforth) . Simple excel worksheet did the job for me. I created an excel sheet with different activities like travel, eating out, buying gadgets, etc and allocated annual capital to them for current FY (April 2022 – March 2023). While allocating capital for SFC, to ensure I don’t go overboard and also don’t budget too less an amount, I needed a benchmark. Enter a simple thumbrule – my S...