Budgeting for Fun: Balancing Spending & Financial Goals

Budgeting income when you enjoy spending is as much about creating personal rewards as it is about discipline. When you are creating your personal budget, you should try to allot for pleasure spending. The amount that you can afford to put into this category will depend upon your income and your expenses. You should list all of your fixed and variables costs and also make allowances for overages and unexpected expenses--as those frequently occur. After your necessities are taken care of, you can split any remaining funds between savings and pleasure spending. You should keep in mind that only through saving will you be able to reach long-term goals.

The reason you should include pleasure spending in your budget, particularly if you enjoy spending, is that it will occur regardless. If you do not plan for this segment of spending, there are no limits, and it can easily get out of control. If you recognize this personal tendency and plan for it by setting a limit, you have a better chance of making responsible decisions. This segment of your budget gives you something to look forward to, so you will be less inclined to cheat by going off budget.