How to Set an Entertainment Budget Without Feeling Guilty

*This is a collaborative post on how to set an entertainment budget without feeling guilty

When people hear the word “budget”, they often think about saying no. No takeaways, no gigs, no little treats. But I think that’s the fastest way to give up on your budget by week two. A budget with no room for fun is a budget that won’t last.

That’s why I’m a big fan of an entertainment budget. It lets you enjoy your money while still looking after your future. Here’s how to set one up in five simple steps.

1. Work Out What You Can Afford

What are your essential expenses? For most people, this is rent or mortgage payments, bills, groceries, transportation, and payments on debt and savings. The remainder is what you can safely spend on things you want and can afford to do without.

If there isn’t much left, that’s okay. If you only have £20 a month, this is a perfectly fine starting point to work with. You can always increase your spending later.

2. Look at What You Already Spend

Open your bank app and go through the last two or three months. Look for streaming services, apps, cinema trips, gigs, games, takeaways and days out. Most of us find at least one subscription we forgot about.

Cancel anything you don’t use. That money can go straight into your fun pot, and you won’t miss it.

3. Decide What Actually Makes You Happy

Some things do not bring the same level of happiness when spent on. Pick your two or three best things.

For some people it’s live music and meals out. For others, the best things are video games, books, or weekends away with friends. Spend more on what you love and cut back on what you do only out of habit.

4. Give Each Treat a Limit

Set a strict limit for each treat you decide you want to give yourself. People accomplish this in different ways. Some people use cash envelopes. Other people prefer to set up a restricted account with their bank. The goal is to give yourself a strict limit for fun. You may think this limits you, but it actually gives you the freedom to spend without having to think about your budget, because you know it’s already planned.

5. Keep Online Entertainment in Check

This one needs extra care. Streaming, mobile games, and other online entertainment can take small amounts that can be quickly addictive. If you enjoy online games on sites like NetBet, treat them the same way as a cinema ticket: money you have chosen to spend on fun, never a way to make money.

Here are my simple rules:

• Only use money from your entertainment pot.
• Set a deposit limit before you start.
• Debt is debt. Never use the money you’ve set aside to pay your bills and save, and never borrow to play.
• You must be 18 or over. If it stops being fun, take a break and visit BeGambleAware.org for free support.

Check In Every Month

Once a month, take ten minutes to see how your entertainment budget is working. Did you spend it all? Did you have money left over? Did the things you paid for actually make you happy?

Adjust it as you go. A budget isn’t a test you pass or fail. It’s a tool that should change with your life.

Final Thoughts

Being good with money doesn’t mean cutting out every treat. It means choosing your treats on purpose, so you can enjoy them without the guilt. With a small, clear entertainment budget, you can look forward to your next night out, game, or gig and still stay on track with your goals.

What do you spend your fun money on? Tell me in the comments. I’d love to hear your ideas.