It can be daunting to allocate funds for fun when you’re under financial pressure.
However, here’s a solution. Create a “fun money” budget !
This simple strategy allows you to enjoy life on any budget. A budget will help you keep your monthly spending under control without sacrificing your financial goals.
KEY TAKEAWAYS
If you’re unsure about how to get started budgeting for your fun money, these are some of the common budgeting strategies.
Zero-based budgeting : This involves a detailed report of your expenses to get a very precise idea of your monthly budget as it shows you precisely where all your money is going each month.
50/30/20 Rule : 50% to your needs, 30% to your savings and debt payments, 20% to your wants (AKA your fun money)
Pay Yourself First : You ensure your essential expenses are covered and you put aside an amount for your savings right after your paycheck is out.
