Budgeting for fun -- do you still do it? When you were a kid you may have received an allowance for good behavior or helping out around the house. That allowance was yours to spend any way you want. Do you remember how you felt on allowance day, was it happiness? Happy to have money in your pocket ready to buy nice, fun things.
Why don’t we do that anymore if it makes us feel good?
Just because we’re adults doesn’t mean we don’t need a little fun money now and then. So how do you start budgeting for fun and make room for eating out, a shopping spree or a vacation when you have bills to pay? By planning ahead and setting spending limitations.
1. Plan Ahead for Unique Expenses:
The good thing about wanting nice things is that they’re rarely spur of the moment, impulse purchases; that means you have time to plan (and save) for them. If you know that you’ll be going out for a nice dinner in a few weeks then cut back spending now in order to save.
There’s no need to get into debt to celebrate an anniversary, your friend’s birthday or a family member’s graduation. Just cut back on your daily spending in order to afford a night out on the town.
2. Prioritize Expenses:
Having a fixed income means you have fixed expenses. If your budget allows for a set amount of saving each month setting priorities will help allocate a percentage for budgeting for fun stuff.
If you’re saving for an annual vacation you may want to save less each month because you have more time to let the funds accumulate. If you’re saving for a new wardrobe you may only have a few months to set money aside. You’ll want to allocate a higher percentage of your savings budget towards the more immediate goals.
3. Always Save for a Rainy Day:
Setting money aside for a rainy day should always be in your plans because you just never know when an emergency will come up. Setting $25 aside each week adds up to $1300 (before interest) per year. That’s a nice chunk of change to have on hand when life happens.
4. Set Limitations:
Budgeting for fun is exciting because you have something to look forward to, but spending that fun money is even better. The key to enjoying your money is to set limitations.
Whether you’re dining out, going on vacation or spending a day shopping remember to spend within your limitations. If you have money saved don’t plan to spend more than you have. Enjoying your money is great, but getting into debt for over spending is not.
The CESI Team is committed to helping you reach your financial goals. If debt keeps you from living the life you dream of, contact us for a free debt analysis today and get started on the road to a brighter future!
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