This post may contain affiliate links, which helps us to continue providing relevant content and we receive a small commission at no cost to you. As an Amazon Associate, I earn from qualifying purchases. Please read the full disclosure here.
Being a budgeter is just about the worst job in the world UNLESS you know about fun money and how to make it work for you!!
When budgeting, you are told to track for every single purchase, make sure you’re staying within your limits, and make sure you’re still saving for important things.
But all of that can be a little more fun when you use these tips to make your budget have a good time.
First, forget the math! You’re going to need some kind of online system that will do all of the math for you. You might have to pay a little bit, but it’s worth it when you don’t have to do any work! Check out my favorite!
You know the saying, “Money can’t buy happiness.”
I believe that money does not have to be the root of all evil either. We are surrounded by an abundance of material goods and services for ourselves these days—it’s easy to spend like there is no tomorrow!
That being said, let me tell you about some ways I’ve found how to make my day-to-day budget fun with a little bit of creativity sprinkled on top!
Fun money is a novel concept and is one of the most popular ways to spend money.
This guide will help you create the perfect balance between saving and splurging, including different ways on how to spend it wisely.
What is Fun Money?
Fun money is the money that you’re able to spend on yourself without feeling guilty.
It is the predetermined amount of money or allowance set aside for each person to have their own fun money.
Fun Money has many benefits, including giving you freedom from guilt when indulging in your favorite treats.
It allows you to spend your funds however makes sense in order not to restrict yourself on what you can do with them.
Why do you need fun money in your budget?
Many people use fun money to reward themselves for completing certain tasks or achieving some goal. For example…
- If you are trying to lose weight by eating healthy foods but have a hard time sticking to your diet. Then, you may use fun money to buy yourself a new outfit or shoes.
- If you have been saving for a house and have reached the amount of money needed to purchase one. Then, you might use some of your fun money to go on a vacation.
Fun money is usually not earmarked for anything specific but is typically used as an incentive to complete some task or achieve some goal.
Also, fun money can be used as your own personal “spend-as-you-wish” fund. There are no questions asked if you stay within the allotted amount.
Fun money is a morale-booster and budget saving tool. The more fun you make your budget, the less stress it will cause in your life.
It’s important to take time for yourself by spending some of the extra savings on something that makes you happy. This could be like buying new clothes or going out with friends.
2. Limits Impulse Spending
The ultimate pressure to spend is real and happens without thinking! Fun money is something that you put aside for those impulse buys. Like those candy bars by the checkout line at Target or buying an extra coffee on your way into work in the morning.
This will help keep you responsible and accountable as well as limit spending because it’s set aside before purchases are made.
3. Money Fights Go Away
It’s no secret that money is the root of many arguments in relationships.
However, there are ways to avoid these issues and save your relationship!
One way you can do this is by creating an account for fun money. Fun money should be used when one partner wants to spend time with friends or family without guilt tripping their significant other into giving them more space within the budget.
4. No Judging
Fun money is a way to make your budget fun by spending it for yourself without judgment.
This makes you feel like the amount of money in your account doesn’t mean anything because it’s not necessarily something that society deems valuable. Thus, feeling free from judgment will allow you to enjoy all aspects of life more.
“If I have fun while I’m there, then why would anyone care about what happens?”
5. Stick to Budget
Fun money is the perfect way to make your budget fun.
Without this, people are more likely to abandon their budgets altogether and spend their funds on things that don’t contribute towards achieving financial freedom.
It’s easy for people to forget about fun when they’re working through a serious list of obligations every day like work, school, or family commitments.
Fun money provides an outlet where you can not only enjoy yourself. But, also save some extra cash in order to put it away into investments later down the line.
6. Importance of Adding Fun
The importance of adding fun money to your budget is undeniable.
This money allows you to have the freedom and flexibility to do what you want without worrying about how it will affect your finances.
It allows you to save for something big, or just have some extra money for a rainy day.
Fun Money As a Budget Essential Category
Fun money is a type of budget that you can use for special things to make your life and budget more fun.
While there are many ways to approach budgeting, Fun Money helps you set a fun and enjoyable budget.
This is one of the personal budget categories you need in your budget.
These are funds that you set aside specifically for spending on whatever you want because it won’t impact the rest of your budget.
If this sounds like a good idea, start with $10 and then increase or decrease how much is allocated per month depending on what suits your lifestyle best.
The only rule is that Fun Money must be spent within 90 days. So, make sure whatever it ends up being used for fits this criterion!
How Much Fun Money per Month
Each month, the average American spends $8.37 on “fun money.” This is just a little over $0.25 per day and includes things like going to movies, eating out, and going to the mall.
The amount of fun money you need is largely dependent on your goals and income.
It’s important to know what you want out of the budget before determining how much cash it will take to achieve those goals, as well as how often one should spend this type of money.
It can be anything from $10 a month for something like coffee or streaming services all the way up to $100 per month if that aligns with personal/family needs such as groceries or utilities.
When it comes to the average budget, it is recommended to have at least $10 – 20 available every month for fun money.
How to Budget for Fun Money
Budgeting for fun money is a good idea because it will help you avoid spending too much money.
If you make sure to plan your finances well, then there should be no problem with budgeting for fun money.
Fun Money Budget – This is one way people can set up their finances and plan out what they need before purchases start coming up.
Fun Money Reserve – This is a savings account that’s separate from the main budget and can help people save for bigger purchases.
The overall budgeting process should include fun money.
Tips on How to Budget for Fun
In order to budget for fun, one must first figure out what they would like to do with their money. They should then decide which activities are worth the most and cut back on any unnecessary spending.
One should also take into account how much they want to spend on each activity and set a limit for those activities as well.
Separate Money from Main Accounts
Separating this money allows you to spend guilt-free while still having a budget in place for other things.
The fun money should not be left to your main checking and savings.
Keep that money in a separate checking account or a cash envelope. Money just for you!
As you get used to the concept of fun money, you will see how easy it is to pay all monthly obligations while knowing something exciting is waiting for you!
Fun Things to Spend Money On
Fun money is a way to spend your money on experiences rather than things. It’s an excellent way for individuals to have fun while also saving up for future financial goals.
It’s important to set personal guidelines before you get started, such as knowing how much of your income can go towards fun money and what types of items are allowed because the experience will be more satisfying when it’s done with intent.
Here are things to spend money on for fun:
- A really nice dinner out for two
- Happy Hour
- Ziplining tour
- That thing you have been wanting FOREVER!
Honestly, anything that feels like a luxury to you or spending that brings tension in your relationship.
Always try and find free forms of entertainment. Do you want to go see a movie? Check the library for free screenings! There’s always something going on in your city, and it’ll cost you nothing but time.
Another great way to have fun with your budget is to take advantage of all the free things in your city. Go on a picnic in the park, go ice skating at night when it’s empty, or try out the free classes that are offered at your local gym.
Most of the time having a fun time with your money is more important than spending it on things.
How to Save for your Fun Money
First of all, start saving for your fun money on a regular basis.
You’ll want to save at least $5 per week on average in order to have enough saved up by the time you want to buy your fun item. If you’re not sure how much money that is, just multiply $5 by 52 weeks and you will have $260 a year. Increase the amount each week or month and you will have more fun money spending!
Next, set up a jar or put some coins in a piggy bank. Do not touch it for at least two months.
Then, buy your fun item and use that money instead of spending it on anything else.
By focusing on what you want and not what you don’t, it is easier to save more funds so they have enough for when life gets tough during the week.
When they think about this new perspective, people understand why saving up isn’t always necessary. This is especially true if there aren’t any calamities or emergencies coming around the corner and will constantly find ways to make their money work for them.
A “Fun Money Budget” is Less Stress
A fun money budget is a type of spending plan that allows people to spend money on activities or experiences they enjoy, without having to worry about how much they are spending.
In fact, it is the opposite of a strict budget, where people must spend money on necessities.
By utilizing fun money, transparency will result in more trust and fewer money fights.
Money is a tool that you have permission to use.
There are numerous ways to break out of financial constraints and enjoy life with your money. All while staying on budget.
You can save for fun by doing something like taking up a hobby or spending time with friends and family! It’s all about having fun!
Budgeting for “fun money” can make all the hard work seem more doable by giving you a sense of purpose and making it easier to stick with your goals.
More Budgeting Resources:
- How to Make a Budget Binder to Motivate Your Financial Goals
- How to Budget Money and Still Enjoy Life
- Budgeting Apps: The Complete Guide to the Best Budget Apps