How many times have you created a budget so strict that you end up feeling guilty because you blew it? It’s no secret that we need a budget to reach financial freedom but a budget doesn’t have to leave you feeling deprived. Too many times we set a budget so tight that we feel suffocated and blow money that’s meant for food, shelter, utilities, etc.
While it’s important to budget for these things, we CANNOT forget to budget in fun money. Fun money or pocket money allows you to enjoy some of the pleasures of life without dipping into the necessities of life. A spa day or latte isn’t needed for survival, but it can help you keep your sanity. Making things too strict can actually blow your goal of becoming debt free or saving for a home because there is no wiggle room for a little enjoyment.
Setting the same amount each month will allow you to reevaluate your purchases. That magazine or cup of coffee seems harmless but it adds up quickly and will keep you from buying tickets to that play you just had to see. It will help you curb those small purchases.
Fun money will also make you get more creative with how you maximize your money. Instead of buying that art piece you can make it for a fraction of the cost by purchasing supplies, make your own latte, and take part in free events in the city instead of always splurging on impractical things.
Depending on your income and budget, your fun money can be as little as $20 or as much as $200 per month. Be realistic when setting this amount because you don’t want to end up with an eviction or without utilities because you had too much fun and not enough responsibility. Don’t allow the fun money t keep you from your goals.
Fun Money and Why You Need it appeared first on Hobbies and Cents.