Have you ever heard of the term fun money? Maybe not something many of us have thought about recently with the cost of everything going through the roof. However, life is for living and making memories, enjoying our favourite hobbies, and doing something a little bit out of the ordinary make for laughter and joy. How much cash do you spend on yourself, outside of the usual health and household expenses? How much fun money should we allow ourselves every month?
What Is Fun Money?
Firstly, we need to talk about exactly what fun money is. This is part of your budget that you set up and stick to, allowing you to have fun with your wants, rather than your needs. We all need food, heat, and shelter. We need to pay our bills and clothe ourselves. However, the wants are somewhat different.
We might want to go and watch a cricket match with our friends. We might want to go to a theme park with a loved one. It could be something so simple as hiking in your local National Park. The pot of money is allocated and can change from month to money depending on your budget. It is put in place to allow for joy, without impacting your long-term financial goals.
Fun money is not frivolous spending without a thought about the repercussions.
What Can You Use Fun Money For?
We’ve mentioned a few things already, cricket, theme parks, and hiking, but fun money can be used for a vast array of different things. Basically, it is a pot of money that can be used for things that bring you happiness. Paying for those desires. Perhaps you have recently got into running and want a new pair of trainers to take your hobby to another level. This is where your pot of fun money comes into play.
As we all have different interests and things that bring us joy, the list of things will vary from one person to another. One of your friends might use theirs for a themed bottomless brunch. Another might want a new outfit, to try a new club, or buy a piece of artwork for their living room wall. What is on your fun money list?
What Is A Reasonable Amount Of Fun Money?
When asking the question of how much fun money should I allow myself every month, we need to first see our own unique financial situation as just that. Lots of budgets will allocate 30% of your incomings to your wants. This is when 50% is used for bills, 30% for fun, and 20% for savings. Great in theory. However, a theory isn’t reality.
It is important to remember that there is not a one size fits all approach here. Some of us have a lot more outgoings than others. We are all in different situations and have different circumstances. There might be certain things we are saving up for that need to be made a priority over and above fun money. We might be at a specific time in our lives, or approaching an event that needs to be first and foremost in our financial decisions.
There could be months when you simply cannot afford to have fun money. Keeping that roof over your head is much more important. A reasonable amount is the amount that you can afford.
Fun Cash Conclusion
When we work to live, we need to make sure that we are actually living. If you are able to, use some of your income to make some memories with your loved ones. Even a small budget for this dedicated pot of cash can make a huge difference in your life.
You will feel a boost in your wellbeing. You’ll be able to learn and use new skills. In the end, you will feel like you aren’t just working to pay the bills. Start putting a bit of fun money aside and figure out how you’ll use it.
