How much should I spend on fun stuff versus bills?

Finding the right balance between enjoying life and staying financially responsible can be tricky. You want to have fun—dining out, traveling, or treating yourself—without jeopardizing your ability to pay rent, utilities, or savings goals.

So, how much should you actually spend on “fun stuff” versus bills? We’ll break down budgeting strategies, popular spending guidelines like the 50/30/20 rule, and tips to help you enjoy life without financial stress. Let’s dive in and find a balance that works for you!

Follow the 50/30/20 rule loosely, adjusting based on personal priorities

A common budgeting method suggests putting 50% of income toward needs, 30% toward fun, and 20% toward savings. This gives a solid balance between financial responsibility and enjoying life.

The key is to adjust based on personal priorities. Some may want to save more, while others may spend less on fun to pay off debt. Flexibility helps create a budget that works long-term.

To learn more: How to Budget Your Money With Percentages – Cents Plan Formula

Use the “Fun Fund” method, setting a separate bank account for guilt-free spending

Setting up a separate account just for fun spending makes it easy to track and control. Once the money is gone, that’s it until the next deposit.

This prevents overspending while allowing guilt-free enjoyment. It’s a simple way to make sure fun money never interferes with bills or savings.

To learn more: The Top Money Spending Habits You Need to Know

Try the “1% Fun Rule”

If sticking to a strict budget is tough, setting aside just 1% of income for spontaneous enjoyment to balance spending. It’s a small enough amount to stay responsible but enough to enjoy small treats.

This method ensures there’s always room for fun without hurting bigger financial goals. Over time, it also builds awareness of spending habits.

To learn more: Fun Money: The Ultimate Guide to Make Your Budget Have A Fun Time

Automate your fun money by setting up a monthly transfer to a prepaid debit card

A prepaid debit card loaded with fun money makes budgeting simple. It keeps spending separate from bills and savings, preventing accidental overspending.

Once the balance runs out, there’s no temptation to dip into other funds. It also adds structure, so there’s always something set aside for fun without second-guessing.

To learn more: 15 Mini Savings Challenge Printables To Save More Money

Use a “Reverse Budget”

This approach focuses on taking care of must-haves before deciding how much to spend on fun. Bills and savings come first, then whatever remains can go toward entertainment and extras.

It’s a great way to enjoy life without worrying about overspending. This method also works well for those with unpredictable income.

To learn more: What is Zero-Based Budgeting and How Does It Work?

Set “experience” over “stuff” goals

Instead of spending on random items, putting fun money toward experiences can bring more lasting happiness. Whether it’s travel, concerts, or hobbies, experiences create memories that last.

This approach helps stretch the value of fun spending. It also reduces clutter and impulse purchases that don’t add much joy over time.

To learn more: Overcome Gift Regret: Experience Gift Ideas That Do Not Go To Waste

Leverage credit card rewards to fund fun purchases without extra spending

Using rewards points or cashback for entertainment makes fun spending easier without affecting the budget. Many cards offer perks for dining, travel, or shopping.

The key is to use credit responsibly and pay off balances each month. This way, fun money comes from rewards rather than dipping into savings or essentials.

To learn more: 15 Most Effective Credit Card Hacks and Rewards

Use a “Challenge Budget”, such as a no-spend month, to boost awareness of spending habits

Trying a no-spend challenge can highlight how much money is going toward non-essentials. It’s a great way to reset spending habits and find free ways to have fun.

The money saved can then go toward a bigger fun goal, like a trip or special event. This method builds discipline without cutting out fun completely.

To learn more: The Pledge to Buy Less with the No Buy 2025 Trend

Apply the “Joy-per-Dollar” test

Not all fun spending is equal. A quick impulse buy might bring short-term joy, but something meaningful lasts longer.

Before spending, asking if a purchase will truly be worth it helps avoid wasteful spending. This method helps get the most happiness from fun money without regrets.

To learn more: Our Journey to Own Less Stuff After 6 Weeks Without Our Things

Mix fun with financial goals

There are plenty of ways to have fun without spending a lot. Free events, outdoor activities, or game nights can be just as enjoyable as costly outings.

The money saved doing free or low-cost activities can then go toward bigger financial goals. This method helps strike a balance between fun and smart budgeting.

To learn more: 62 Fun Things to Do with Friends: Activities for Friends To Do

Set a “Fun Cap” by choosing a maximum amount per week instead of per month

Breaking fun money into weekly limits makes it easier to stay on track. A monthly budget can be tempting to spend too fast, leaving nothing left later.

Weekly limits help keep spending steady and prevent running out too soon. This approach also builds better habits over time.

To learn more: 15 Obvious Expenses You Should Never Charge

Gamify saving for fun purchases, using apps that round up spare change

Apps that round up purchases to the nearest dollar and save the change make fun spending effortless. Over time, small amounts add up, creating a built-in fun fund.

This method makes saving automatic and removes guilt from fun spending. It also makes budgeting feel more rewarding.

To learn more: 15 Shocking Money Saving Tips That Actually Work

Plan for irregular fun expenses by setting aside money in advance

Big fun expenses like trips or concerts don’t have to throw off a budget. Setting aside money ahead of time makes these events stress-free. Instead of scrambling to find the funds, the money is already there when needed.

This approach keeps big fun purchases from affecting bills or savings.

To learn more: How to Budget Flexible Expenses and Save Money?

Track fun spending separately to stay accountable and adjust as needed

Keeping track of fun money separately helps avoid surprises. It shows where money is going and helps make adjustments when needed.

If spending feels too high or too low, tracking makes it easier to find a balance. This method prevents guilt while making sure fun doesn’t take over the budget.

To learn more: 10 Useful Tips to Save 5000 in 6 Months

Create a “Fun Trade-Off” rule

Small daily expenses add up, but swapping them for something bigger can make fun spending more meaningful. For example, skipping takeout for a month might cover concert tickets instead.

This method makes budgeting more flexible without feeling like a sacrifice. It’s a great way to stay on track while still enjoying fun purchases.

To learn more: No Spend Challenge: The #1 Fastest Way To Save Money

Get that biweekly budget to work for you with that fun spending built in

For those paid biweekly, budgeting with fun money included makes spending easier to manage. Instead of waiting for the end of the month, setting aside a portion of each paycheck allows for steady fun spending.

This method keeps things balanced while making sure there’s always something left for enjoyment. It also prevents overspending too early in the month.

To learn more: Biweekly Budget Template: How To Create A Biweekly Budget

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