How Much Fun Money Per Month?

Budgeting isn’t just about paying bills and saving—it’s also about enjoying life. “Fun money” is the portion of your budget set aside for entertainment, hobbies, and personal enjoyment. But how much should you allocate?

1. The 50/30/20 Rule – A Popular Guideline

A well-known budgeting rule, the 50/30/20 rule, suggests:

50% of income for needs (rent, groceries, utilities, etc.)
30% for wants (this includes fun money!)
20% for savings and investments

🔹 Example: If you earn $3,000 per month, you’d allocate up to $900 for wants, including fun money.

2. Fun Money vs. Wants – What’s the Difference?

Your “wants” category includes things like dining out, shopping, and streaming services. Fun money is a subset of this, specifically meant for spontaneous spending like concert tickets, video games, or weekend getaways.

How Much Fun Money Should You Have?

💰 10% of income: A moderate approach for guilt-free enjoyment. 💰 5% of income: A more conservative strategy if you’re aggressively saving. 💰 15%+ of income: Possible if you have minimal expenses or high earnings.

3. Adjusting Fun Money Based on Lifestyle & Goals

Low-Income or Debt-Focused Budgeting

Reduce fun money to 5% or less and redirect extra funds toward debt repayment or savings.
Prioritize free or low-cost activities (hiking, local events, DIY hobbies).

Financially Stable & Comfortable Budgeting

Keep fun money at 10-15% to enjoy life while maintaining savings.
Plan for bigger experiences like travel without derailing financial goals.

High-Income & Financial Freedom Budgeting

If savings are on track, you can afford 20%+ for fun money.
Focus on value-driven experiences rather than impulse spending.

🔹 Example: In Norway, people often prioritize “friluftsliv” (outdoor living) as their fun money spending, opting for skiing or hiking instead of material purchases.

4. Fun Money Without the Guilt

🎯 Set a monthly cap and track spending with apps like Mint or YNAB. 🎯 Consider a fun money envelope for cash-based spending. 🎯 Use cashback rewards or side hustle income to boost fun money.

Final Thoughts

Allocating fun money ensures you enjoy life while staying financially responsible. Find a balance that fits your income, goals, and lifestyle—whether that’s 5%, 10%, or 15% of your income.

🔹 How much fun money do you budget each month? Let us know in the comments! 🎉💰

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