When people talk about budgeting, the focus is usually on ensuring enough income is available for any required debt payments or expenses and that funds are directed toward savings. While that advice is undeniably sound, allocating for joy is essential in your budget. Fun money gives you a chance to spend a small sum on niceties or items or services you simply enjoy, and it can make a significant difference when it comes to your well-being. Here’s a look at six reasons why allocating for joy is a must in your budget.
1. Fun Money Prevents Misery
One of the biggest benefits of having some fun money is that it creates room for enjoyment in your budget. You can get a little pick-me-up that helps brighten your day, leaving you in a better mood. Plus, it can prevent the rest of your spending choices from feeling too restrictive, as you’ve given yourself permission to spend a designated amount on joy.
2. Allocating for Joy Keeps You Motivated
With a little bit of fun money in the mix, it’s easier to stick to the rest of your budget. Just like cheat days can make staying on a diet simpler to manage, setting cash aside that you can use on purchases that you enjoy can ensure you’re disciplined about the rest of your spending. Essentially, it gives you enough discretionary spending to ensure you don’t feel overburdened by your budget, so the odds you’ll stick with it increase.
3. Fun Money Helps Avoid Fights About Finances
Budgets are inherently restrictive, and when a couple is trying to follow on to maintain their household, a lack of discretionary spending can lead to disagreements. If one partner thinks they’re prevented from dedicating funds to items or activities they enjoy, they might grow resentful. By providing both spouses with fun money that they can use as they please, it’s far easier to avoid that type of problem.
4. Allocating for Joy Means a Splurge Doesn’t Feel Like Failure
When a budget doesn’t have fun money in it, splurging spontaneously can spur feelings of guilt of failure. If that happens, then you might think that abandoning your budget is logical, as you’ve already made a misstep. But by having fun money built-in, you’re giving yourself an opportunity to spend some cash on items or services that purely bring joy, which reduces the chances of any unintended consequences from the occasional splurge.
5. Having Fun Money in Your Budget Improves Your Money Mindset
Without a doubt, managing money is challenging. However, it’s even harder to keep your financial life in order if your money mindset is negative. If you don’t allocate for joy, the chances that you’ll view money harshly usually go up. In turn, you may start to get frustrated with more than just your budget; you might develop unhealthy views on money. But by having discretionary spending planned out, that isn’t as likely, allowing you to keep a healthier perspective.
6. Allocating for Joy Keeps Limits in Place
By having fun money as part of your budget, you’re permitting yourself to spend on non-necessities, but you’re also setting limits. It functionally keeps your spending under control while still providing that needed bit of flexibility regarding where the money goes and how it’s used. That can help prevent overspending, ensuring you stay in line with your budget.
Do you think that having fun money allocated in your budget is essential, even if your budget is on the tighter side? Why or why not? Share your thoughts in the comments below.
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Tamila McDonald is a U.S. Army veteran with 20 years of service, including five years as a military financial advisor. After retiring from the Army, she spent eight years as an AFCPE-certified personal financial advisor for wounded warriors and their families. Now she writes about personal finance and benefits programs for numerous financial websites.
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