Heck yeah I spend money on fantasy football, sports equipment, travel, desserts, and gifts – you should too! Fun money is just as important as any other budgeted money category, right? Right!
Fun money helps to keep your life balanced. Your fun money could be used for anything that your heart desires…
Are you using yours wisely?!
So, what exactly is this ‘Fun Money’ thing? Within your budget, you have the must-pay bills such as rent, food, and gas. Then, you have the discretionary spending – this includes your fun money! When deciding how much fun money to give yourself, it’s important to:
(1) Ensure your must-pay bills are taken care of first
(2) Know how much money you have remaining after must-pay bills
(3) Consider short and long-term life goals
As an example, if you have credit card debt at 10% interest, then you may want to consider the trade-off of using your fun money to pay down debt for a short period of time. Once it’s gone, you’ll have the opportunity for more fun money. Remember, there is a unique balance between debt repayment and fun, and I encourage you to find your healthy balance.
Hot Tip 1: Your fun money should be aligned with your short and long-term goals. Fun shouldn’t interfere with paying down your mortgage or paying off debt.
Hop Tip 2: Don’t let fun quickly turn into ‘not-fun’- maintain control and spend within your means. Determine what ‘fun’ really is!
Hop Tip 3: If you don’t use all of your fun money, then roll it over into the next week’s fun money!