Budgeting some spending money?

edited 30 November -1 at 1:00AM in Budgeting & Bank Accounts
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FreakShow!FreakShow! Forumite
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edited 30 November -1 at 1:00AM in Budgeting & Bank Accounts
For the longest time I've always saved money. Even as a child, I'd have a drawer of cash saved from birthdays and christmasses.

Into adult hood, I worked and saves, finally able to purchase a house 2 years ago. A lot of money has been spent on the house and I've continued to be careful with money. Lodger rent money has been used to overpay the mortgage, meaning I've hit 60% LTV having started at 70%. I'm doing additional voluntary pension contributions to maintain the half your age rule of thumb. I've put money into regular savers which beat my mortgage rate of 2.4% (locked until October 21). The first regular saver that matured for me bought me a solid second hand car.

Generally, I have no worries when it comes to money. But the problem I am having is actually spending money and enjoying it. How do you budget fun money? How do you guilt free spend on things you want? Is it a % of your income monthly, do you "save" for items that you could just buy straight off?

Any advice much appreciated.

Replies

  • edited 30 December 2019 at 3:58PM
    Willing2LearnWilling2Learn Forumite
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    edited 30 December 2019 at 3:58PM
    I have an 'entertainment' monthly budget category, to keep control of my finances. This category is only for nights out (cinema, restaurant, drinks etc)

    I have a separate category for 'holidays' that I squirrel money into.

    I also have separate budget categories for items that need to be saved toward. For example, home insurance is paid annually, so I put aside a little every month into the home insurance category :)
    I work within the voluntary sector, supporting vulnerable people to rebuild their lives.

    I love my job

    :smiley:
  • Eco_MiserEco_Miser Forumite
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    I also have difficulty spending on 'treats', but when I have convinced myself that I really want it (not just reacting to adverts, or the product in front of me in the shop), and that it is at the right price, and I have the money available, I just buy it.

    If you have a detailed budget, include a 'treats' category.
    Eco Miser
    Saving money for well over half a century

  • kuratowskikuratowski Forumite
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    If you keep track and only spend what's available, you shouldn't feel guilty in spending it. I'm wondering if the root cause here is lack of financial planning. Do you have a budget?
  • LobsterMemoryLobsterMemory Forumite
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    Trips to the cinema / pub / football / holidays can be budgeted for in the normal way.

    I also have a splurge fund which I use for those one-off things that you suddenly find you want e.g. a trip to Ascot with all the trimmings or buying Euro 2020 tickets or a prize Koi carp or if you wanted to see what the fuss about Wagyu beef is all about

    I was able to populate that fund from an inheritance but if I was starting from scratch, I'd skim off a percentage of the money I was putting aside for the emergency fund - I'd do half emergency, half splurge; other proportions are available
  • getmore4lessgetmore4less Forumite
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    What do you want to do to have some fun?

    Do you turn down invites and later wish you had gone.
    Want to eat out occasionally.
    Go down the pub.
    Go to shows(we do comedy as a priority, some are free)
    Travel.
    ....
  • blue.peterblue.peter Forumite
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    I pay all the bills each month (utilities, council tax etc) and pay off the credit cards in full. Then I hold back a certain amount in my current account to withdraw as cash for incidentals over the course of the month. Any money left after this is simply dropped into my savings account. If I decide I want something fun (say, a new bit of hi-fi kit), I just take the necessary money out of savings to pay for it. That, in my view, is part of what what savings are for. As long as the long-term trend on my savings and investment graph is rising, I'm content.

    (The other part of what savings are for is to meet the unexpected costs - a new boiler, for example. That's the money I resent spending, not that which pays for fun stuff.)
  • db2016db2016 Forumite
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    all depends on what "fun" means to you.

    i have had a total attitude change this last year or so, and saving is "fun" in a way too!

    but knowing that if i want something i will use it and i got the best price is also fun part of buying something i want too.

    but in general, save yes, but also have a life doing it - theres a lot on here who HAVE to have next to no life, and just save because of past mistakes.

    dont be foolish with money (or get mugged off, eg by buying every round at the pub), but also dont hold out for the future too much, you have to live some for now.
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