In the world of personal finance, it is crucial for you to strike the right balance between saving, investing, and spending on the things that you want. In many cases, when funds are tight, it is the ‘fun money’ that gets sacrificed, even though it can play an essential role in your mental health and well-being.
It is important not to neglect this, then, but your different hobbies and leisure activities come with varying costs, making it more important than ever to allocate your cash wisely. Your ‘fun money’ is spent on everything from take-outs to traveling and any hobbies, including photography, gaming, or streaming service subscription costs. To get the most out of all of these you need to get your financial act together to enjoy your pastimes without jeopardizing your financial future.
#1 Take a financial snapshot of where you are now
The first step here is to have a clear understanding of your current situation. Calculate your monthly income and subtract regular and essential expenses like rent, heating, food, car payments, and any savings. What’s left is your disposable income, and you need to decide how much of this counts as ‘fun money.’
#2 Budget for your hobbies and interests
As you well know, different hobbies can have different costs associated with them. For instance, something like snowboarding has a medium upfront cost of your board and gear but larger ongoing expenses as you go on trips to different slopes. Photography can have a large upfront cost to buy the equipment and software but lower ongoing costs as you take photos. It is a question of allocating your ‘fun money’ based on what you really value and keeping one eye on the costs over the long term.
#3 Setting budgets for online entertainment
One easy way to spend money is with online gaming, where you can buy extras to enhance your gaming experience. Another is at online casinos, where it is essential to never play with more than you can afford to lose. In situations like this, you could opt to use a deposit method that is not linked to your bank account, and you can fund it only with a set amount each week or month. Responsible gambling advice is also available at the best online casinos, whether you are playing casino games in NZ or anywhere else in the world.
#4 Track your spending
It is one thing setting a budget and another sticking to it. You can track your ‘fun money’ spending using one of the many budgeting apps brought up by a simple Google search. This lets you see where your money is going, and you can adjust your spending habits if you need to. For instance, if you find one hobby is taking more of your ‘fun money’ than you thought, you could dial it back a bit or intersperse it with low-cost entertainment.
#5 Find low-cost entertainment
Not all hobbies come with a hefty price tag; for instance, taking a walk in the park need not cost a penny and has all of the benefits associated with being in the fresh air. If you prefer not to go outdoors, there are still plenty of free games and websites you can use to give you enjoyable experiences without leaving a hole in your budget.
