Budgeting sounds mature and responsible… until someone says you can’t have fun money anymore.
Let’s be honest—if your budget doesn’t include enjoyment, it won’t survive past week two.
So the real question isn’t whether you should budget fun money.
It’s how much fun money should you budget without feeling guilty or going broke?
Let’s break it down in a simple, realistic way.
What Is “Fun Money” in a Budget?
Fun money is the part of your budget reserved for non-essential enjoyment—things you want, not need.
This can include:
- Dining out or ordering food
- Movies, streaming subscriptions, or gaming
- Shopping for clothes or gadgets
- Hobbies, trips, or spontaneous plans
- Coffee runs that keep you sane
Fun money exists to make budgeting sustainable, not miserable.
Why Budgeting Fun Money Is Actually Smart
Many people skip fun money thinking it’ll help them save more.
In reality, this usually backfires.
Here’s why fun money matters:
- It prevents binge spending later
- It removes guilt from spending
- It makes your budget realistic
- It helps you stick to long-term financial goals
A budget without fun money is like a diet without cheat meals—it looks good on paper but rarely works in real life.
So… How Much Fun Money Should You Budget?
The Short Answer:
Most people should budget 5% to 15% of their monthly income as fun money.
The exact number depends on your income, expenses, and goals.
The 50/30/20 Rule (Popular & Simple)
The 50/30/20 Rule suggests:
- 50% for needs
- 30% for wants (this includes fun money)
- 20% for savings
Within that 30% wants category, fun money usually takes 10–15% of your income.
Example:
If you earn $3,000 per month:
- Fun money range: $150 to $450
- Comfortable average: $250–$300
Low-Income or Tight Budget Scenario
If money is tight, fun money still matters—but on a smaller scale.
A realistic range:
- 3% to 7% of income
Even $50–$100 a month can make budgeting feel human instead of punishing.
High-Income or Aggressive Saver Scenario
If your essentials are covered and savings are on track:
- 10% to 20% can be reasonable
- Especially if experiences and hobbies matter to you
The key is balance, not restriction.
How to Decide Your Personal Fun Money Amount
Ask yourself these questions:
- Are all essentials fully covered?
- Are you saving consistently?
- Do you often feel guilty after spending?
- Do you overspend when you feel restricted?
If you’re overspending impulsively → your fun money is probably too low.
If you’re missing savings goals → it may be too high.
Fixed Fun Money vs Flexible Fun Money
Fixed Fun Money
- Same amount every month
- Best for people who like structure
- Example: $200/month, no exceptions
Flexible Fun Money
- Adjusts based on income or expenses
- Best for freelancers or variable income
- Example: 8% of whatever you earn
Both work—as long as you track them.
Common Fun Money Budgeting Mistakes
Avoid these traps:
- Treating fun money as “whatever’s left”
- Cutting fun money first when budgeting
- Mixing fun money with essentials
- Feeling guilty for using it
Fun money should be planned, not accidental.
Final Thoughts: Fun Money Is Not a Luxury
Fun money isn’t irresponsible spending—it’s intentional enjoyment.
If your budget doesn’t allow room for life, it won’t last.
The right fun money amount is one that:
- Keeps you happy
- Protects your savings
- Helps you stick to your budget long-term
Because a budget you can live with is better than a perfect one you abandon.