All work and no play makes for a very dull life. After all, what’s the point of working your life away if you don’t have anything to show for it? That’s not to say you should spend all your hard-earned cash on material possessions, but you should at least allow yourself to enjoy your money on occasion.
One of the best ways to do this is by allocating a certain amount of fun money in your monthly budget. You can spend this money on whatever you want without worrying about the consequences. And if you’re worried about overspending, you can always put a limit on how much you spend each month.
Here’s how you can make room for leisure in your budget and why it’s important:
Assessing Your Monthly Budget
The first step to allocating fun money is understanding your current monthly budget. This means knowing how much money you have each month and where it’s going. If you don’t already have a monthly budget, now is the perfect time to start one. Plenty of free budgeting templates and apps are available online to help you get started.
Once you understand your monthly budget, you can start setting aside money for fun activities. Start with a small amount and increase it gradually over time. For instance, if you’re putting away 50% of your income for essential expenses and 20% on savings, you could allocate the 30% left behind for your wants and fun money.
This 50/20/30 rule is a great starting point, but you can adjust the percentages to suit your needs. Just make sure you can still cover your essential expenses and save for the future.
Automating Your Savings
Consider automating your savings if you’re worried about losing control and overspending. This means that every time your income enters your current account, a fixed amount is transferred into your savings account. And you could set the percentage or dollar amount based on your budgeting strategy.
By automating your savings, you take the temptation of spending beyond what you’ve budgeted for your fun money. And if you have a specific saving goal in mind, this can help you stay on track. Of course, you can always access your savings if you need to, but it’s best to leave them untouched unless necessary.
Determining Where to Spend Your Fun Money On
Now it’s time to have some fun! But before spending your hard-earned cash, you need to decide where to spend it. This will help you stay within your budget and prevent you from spending the money you don’t have. Doing so can also help you understand the value of delayed gratification more.
Some people like to use their fun money for experiences, such as eating out, seeing a movie, or going on vacation. Others prefer to use it on material possessions like clothes, shoes, or gadgets. And some people like to use it for both. It’s really up to you and what brings you the most enjoyment.
Just make sure that you’re actually spending your fun money every month instead of saving it for something special. Of course, this is understandable if you’re saving for a big trip or event, but don’t let your fun money sit in savings for too long. After all, the whole point is to enjoy it!
Why It’s Important to Prioritize Your Leisure Time
If all you do is work and never have fun, you will eventually burn out. That’s why it’s crucial to prioritize your leisure time and ensure you’re spending the money you worked hard for on things you enjoy. Not only will this help you relieve stress and relax, but it can also boost your mood and overall well-being.
Plus, when you have fun money set aside, you won’t have to worry about the repercussions of overspending. You can go with your friends if they spontaneously decide to go out or buy that new outfit you’ve been eyeing without thinking twice about it. Having fun money can help you live in the moment and enjoy your life to the fullest.
So go ahead and indulge yourself every once in a while. You deserve it!
The Bottom Line
When you start allocating fun money in your monthly budget, you may find that you can stick to it more easily. This is because you’ll be less likely to overspend on things you don’t need. And if you do overspend, you’ll know that it will not impact your ability to cover your essential expenses or save for the future.
So if you’re looking for a way to make your monthly budget more enjoyable, consider allocating some fun money. It could be just what you need to stick to your financial goals and improve your overall well-being!