Well, if you want to enjoy the fruits of life, you invariably would have to spend your money wisely. Insane spending habit leads you nowhere. On the contrary, it is thoroughly detrimental to your financial health and status. Unplanned and insensible spending spoils your budgetary allocation and then you ultimately find it difficult to manage your necessary expenditures.
However, we do not mean that you should be a penny pincer or miser, what we suggest is that you should go for a strong and well planned personal financial management.
In this context, it is very important for you to pay attention to the amount of Fun Money you spend regularly. As you would also agree Fun Money constitutes a vital part of your monthly expenditures and if not controlled properly, Fun Money can become a big money drainer for you.
So would you like to make your Fun Money run out of your control?
Or, would you like to see Fun Money bring happiness to you and your family?
I suppose you would always prefer the second option.
If you really want happiness from the Fun Money you spent you ultimately have to find the right answers for this important question; that is how much Fun Money You Should Spend? If you are able to plan your expense for Fun Money you can really be happy, enjoy and save money too. The important thing for you is that you should never overspend your Fun Money. You should find how much Fun Money is right for you.
Before we move on to find answer for how much Fun Money you should spend, it is of utmost importance to clearly understand what we mean by Fun Money. Actually, Fun Money is the money which we spend other than on our survival or on the maintenance of our home.
It is often known as the money we spend on our Entertainment and includes stuff like money spent on dining out, watching movies, celebrating festivals, going to amusement park, or shopping for clothes or accessories, buying music, etc. For example, the money you would spend in buying an iPhone would come under the category of Fun Money.
Now, the amount of Fun Money you should spend depends on many factors. The primary among them includes your overall monthly earnings and your saving targets. Here it is important for you to remember that you should always allocate money to the Fun Money category at the end after having set aside money for categories such as utility payments, educational expenses, insurance premium, debt repayments, savings, etc. So budget preparation is the key which can give the right figure for the Fun Money you should spend in a month.
Fun Money can never be a fixed amount. It varies from person to person, depending on his financial; status, goals and responsibilities. So if you have ample amount of savings and low debt to pay off, you can very well raise your Fun Money allocation. Again if you have a healthy Emergency Fund with you, then you can too have a big Fun Money with you to spend every month.
Then if you are managing your personal finances well, you can safely put up-to 10 percent of your monthly earnings for your Fun Money. Suppose you are earning $2500 per month, then a figure of $250 per month would be adequate for Fun Money category. Finally it is up-to you to follow the monthly budget and stick to the Fun Money which you have decided to spend in a month. You have to religiously follow this and never exceed the limit set for Fun Money. Exceeding the Fun Money limit can hamper your other necessary expenditures and saving goals, as well.
Also you can take the help of your family members in preparing the budget for Fun Money. Then you can easily figure out how much Fun Money would be enough and can also determine in what ways you spend the Fun Money. Consulting with your family members helps a lot. They too feel comfortable and know the real financial situation. This way they too can shoulder the responsibility of preparing an adequate Fun Money fund.
So you see that Fun Money though important should not exceed beyond a certain limit. It is up-to you to figure out how much fun money you should spend. And as you have already seen above, you can easily do this. Thus decide your Fun Money in advance so that you can organize your personal finances and lead a happy life.