What is play money or discretionary fund?

QuietGrowth - Play Money or Discretionary Fund

‘Play money’ or ‘discretionary fund’ is a part of your personal savings and it can be of a size that you are comfortable with, if you have the financial strength and appetite to easily withstand the loss of that entire amount in the worst-case scenario. The amount in this discretionary fund can go towards investing in risky opportunities in which you personally believe and understand. Examples of such risky opportunities include a specific stock, a personal loan for a relatively-higher interest to a friend, or a business venture of your friend.

Firstly, you should (a) set your rainy-day fund; and (b) become on course with your long-term investing goals by investing in risk-optimised portfolios such as those offered by QuietGrowth. Only thereafter you should start considering the remaining part of your wealth as play money.

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