Don’t Neglect the Fun Money
Being responsible with money doesn’t mean leaving out fun. And while it’s absolutely possible to have fun at little to know cost, it’s also usually possible to set aside some money to be spent on fun activities.
That can look like different things to different people. It can be called blow money — money that you just blow on whatever you want — or it can mean setting aside money for various categories that go beyond the bare minimum needed to get by. Those “extra” categories could be things like electronics, dining out, events, you name it.
I think it’s important to include fun money when budgeting — with the amount varying depending on your SMART goals, your financial situation, and how much wiggle room there is in your budget.
While I don’t have a single category labeled “fun”, I sure do use a portion of my money on fun things. For me my favorite way to spend fun money has to be on travel. Not only do I get to explore new places, but I get to do it while spending time with my family. As a bonus, it also typically includes one of my other favorite activities: eating out.
So how do you handle fun money? Is it an important part of your budget?