If you are looking for a simple way to look after your money, you will probably start by setting up a budget. You will think about the cost of your bills, rent or mortgage and groceries first, then you might allocate some money to go to savings. The only problem is, that having a budget can make you feel as though you are constantly scrimping and saving when that’s not necessarily the case.
Everyone needs to learn how to live within their means, yes, but if you are saving too hard or not prioritizing the right things, you will quickly fall back into bad habits or end up feeling unhappy. The key, as with many things, is to find the balance. This is where the fun budget comes in.
Set Money Aside for Frivolity
Money should be about more than paying bills: it should be facilitating your lifestyle and giving you the opportunities to fulfill your goals. But, crucially, it should also be there to give you a bit of spontaneity.
We all have little foibles, whether it is a night out with friends, a book-buying habit or something a bit silly like online bingo. These are the things that keep us going day to day, don’t cost a fortune but are truly pleasurable. Setting money aside for this sort of activity – the kind that makes you happy even if it’s not fulfilling a set goal – is vital to your overall happiness. (And if bingo is your thing, you can see the best bingo games comparison and offers online.)
Allocate Savings Accounts for Bigger Treats
Your fun budget isn’t just for frivolous spending, though. You can put your excellent saving habits to good use by allocating some of your fun budget to a particular savings account intended for a more expensive treat. This might be something like a holiday in the sun or could be a budget for redecorating – whatever makes you happy.
Saving indefinitely for “the future” can feel like an endless slog, but if you are specific and name your accounts, you will be able to get a better picture of what you are doing with those savings. For example, you might set up an account called ‘holiday fund’, one called ‘redo the bathroom’ as well as more serious ‘emergency fund’ and ‘pension pot’ savings accounts.
Stay Savvy with Your Regular Spending Habits
The key to spending money on the things that make you happy is knowing that you are already on top of your regular spending and you are staying within that budget. There’s no point in having a fun budget that takes up most of your income if a few months down the line you are completely broke! Be realistic about how much you can put into your fun budget and stick to it, just as you do with the rest of your finances.
So, stay sensible, continue to search for the best deals on everything and make contributions to your savings accounts, just remember that sometimes it’s okay to loosen those tight purse strings and have some fun.