Money that can be used to invest in risky investments with high potential return. Money used for non-business purposes. For example, one may keep aside money for a vacation or to finance an costly hobby. Sometimes, it may also refer to start-up capital for a business based on one’s hobby.
First of all, putting fun money in your budget isn’t a go ahead signal to drop your money goals or go on a spending free-for-all. Fun money isn’t an excuse to be wasting your money —it’s another way to stick to your budget. Please note that you want a zero-based budget, so you should give every single dollar a job. fun money makes you focus all your spending—even the fun stuff—so you don’t accidently waste money on little things here and there.
Most of us work hard for our money, rarely people are born rich. You must have had money goals—and you’re completing them with your monthly budget one at a time .when your friends ask you to join them for dinner and concerts on weekends, you wont think twice as you have already planned your fun money rather than thinking , “It’s not in the budget.”
There are times and seasons to deny extra costs.We have focused intensity on those early Baby Steps of learning new thing or getting involved in something which we love doing . But some self-care is also important, and you still need to treat yourself—at least a little even you are 50 and have teenaged kids with their own energy and stories,demands.
One better way to enjoy life without getting financially strained is to make a budget for fun money.Here’s how:
Budget every dollar, every month.
When you give yourself a budget for fun, you can spend the budgeted amount on whatever you want. This is the money you have set aside to use on that expensive but fancy cappuccino or the new shoes you don’t need regularly but really want to show off in football match .This fun money can be money for date nights or that subscription box you want as a personal treat each month. if you’re married, make sure you and your spouse each have your own fun money plans.
And when the fun money budget is exhausted , it’s exhausted,it is gone .Write it somewhere and save it to keep reminding yourself.
Why You Need to Plan for Fun Money
We talk often about goals and how they need to be the perfect balance of empowering and realistic. Fun money enables those goals realistic because it lets you stick to your goals and have a treat every now and then.
Fun money also helps you to remember a budget. Money expert and bestselling authors have advised A budget doesn’t limit your freedom. It gives you freedom in the long run and short run. Honestly, you’ve got the freedom to put anything you want in your budget. Use it sensibly. Hit your needs and goals hard. Once those are covered, then you can have a little fun.
A budget is deciding up in the beginning and on purpose what every penny will do that month. That kind of planning ahead will keep you from feeling guilty when you do spend. When you think of your budget as self made boundaries on spending, you get a new perspective on budgeting. You’re giving your money permission to go where you want it to go. But using that power wisely is the key
the best benefit of having some fun money in the budget: When you treat yourself a little, Your chances to fall off the goal is very less. It’s like the one cheat meal of the week or the night off from running. That space makes all the hard work seem more fun and workable or doable.
How Much Fun Money Should You Budget?
How much you budget for fun each month is dependent on several things—like your income, debts and savings goals. You might have room for $500, or maybe just $50 right now.
If you’re just starting , keep that fun money to a bare minimum. And get super creative to make those dollars look big. Get thrifty at the thrift store instead of buying everything new. Actually—no matter your income or money goals, savings hacks and thrift stores are always a great idea and helps you feel like an entrepreneur with constraints
And remember, if you’re at a place in life where you’ve got only $20 budgeted for fun money, don’t let that get you down. It’s a just one of those season. You’re working on something more greater,more valuable and higher meaning and it will be worth it!