For better understanding of the word mad money ,we need to go to historical anecdotes. One of the first meaning uses mad in the sense of angry—that is, money to be used by a woman angry at her date, either owing to his making unwanted advances, flirting with other women, or some such reason. It dates back to 1920s, when respectable women began to go out with men without benefit of a chaperon.
Cash carried by a woman in case she wants to leave her escort and return home alone; also, extra spending money. money to be used by a woman angry at her date, either owing to his making unwanted advances, flirting with other women, or some such reason. It dates from the 1920s, when respectable women began to go out with men without benefit of a chaperon. The second meaning uses mad in the sense of impetuous—that is, money to be spent on an impulse purchase. E. M. Miller used it in Exile
Later on several popular dictionaries started to use this term for the purpose of any extra money saved for the purpose of using it impulsively . Later on some finance enthusiast related the mad money to stock markets Cramer defines “mad money” as the money one “can use to invest in stocks .Please note that this is not retirement money, which you want in 401K or an Individual retirement account, a savings account, bonds, or the most conservative of dividend-paying stocks.
- mad money(Noun) : A sum of money, often relatively small in amount, kept in reserve to use for impulsive, frivolous purposes.
- Money saved for minor purchases, often specifally for spending frivolously.
- mad money(Noun): A sum of money kept in reserve or to insulate oneself financially in the event of the sudden breakdown of a relationship in which one is economically dependent.
- A small sum of money kept for unlikely contingencies.