HOW TO BUILD A WINNING BUDGET YOU’LL LOVE FOR BEGINNERS – PART 6: HAVE SOME FUN
“A budget isn’t about restricting what you spend. It gives you permission to spend without fear or regret.”
Dave Ramsey
Time To Have Some Fun On A Budget
If you’ve worked through the previous 5 parts of this series, then you’ve committed to giving, dealt with debt, planned for your future, and met your immediate needs.
Congrats! You should have a really good grasp of how much unallocated money you’ve got left. Hopefully you’re feeling pretty good about it!
Now you’re going to spend it! Now we learn to have fun on a budget!
Well, on paper at least.
It would be easy to stop here and throw the rest of this into a big pile, call it discretionary funds, and move on. But (and I learned this the hard way) all those little subscriptions you have add up. Fast. And if you aren’t keeping tabs on it, you can nickel and dime your fun money down to zero in no time.
So, to be safe, let’s break this down a little.
What Fun On A Budget Looks Like
Your “fun” category is essentially all the things you want, but don’t need. For instance, I don’t really NEED the MVP haircut package at Sport Clips when I go in to get my hair cut. But, because I’m a sucker for a hot towel, I budget $30 each month for the special treatment. Would $6 at Great Clips get the job done? Yes. But because I’ve been responsible in planning out my budget, I’m able to splurge here.
And that’s fun. On a budget.
Your fun may be completely different. That’s great! Just make sure that you plan for it.
Now, I’m not saying you need to budget every transaction separately.
For instance, my wife and I each have a line item that we label “Alex’s Fun Money” or “Angela’s Fun Money.” These function more or less as allowances. If I want a book that she has no interest in, that comes out of my “fun money.”
We also have a family miscellaneous fund. This is basically a catch-all for all the things that pop up that don’t fit anywhere else.
I’d also include any type of streaming services, memberships, entertainment, etc. under the heading of “Fun Money.” (And I personally list each of those out separately so that I can always see at a glance exactly what has been paid, what hasn’t, and if anything changed.)
Put simply, your “Fun” category is just that. It’s the stuff you actually WANT to spend you’re money on. And now, thanks to your budget, you’ll know exactly how much you can spend!
Do This Now
Think through where you typically spend most of your fun money and start making a list.
Take your list, and start to form some categories.
Think about what expenses appear every month. It’s probably best to keep those separated out.
Think about more irregular items that are more or less related. Maybe you frequently go to the movies and also occasionally play mini golf. If you’re a “go out and do things” type person, maybe you need an Entertainment category to file these expenses under.
Spend some time getting organized and playing with the numbers until you’re satisfied! This is your opportunity to give yourself the freedom to spend that money!
Budget At A Glance (So Far)
Section 1: Gross Income
Section 2: Paycheck Deductions
Section 3: Giving
Section 4: Debts
Section 5: Investments
Section 6: Basic Needs
Section 7: Fun
Put simply, your “Fun” category is just that. It’s the stuff you actually WANT to spend you’re money on. And now, thanks to your budget, you’ll know exactly how much you can spend!
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So often people hear “budget” and feel like to have a budget is to take away the freedom to spend. Does this post (or series) help you to see things differently?