Let's talk about entertainment. This one's for people in their 20s and 30s, so if that's you, listen up.
How many times have you gone out, and on getting back, realized you just spent as it came?
You know the feeling. A girls' date with your friends, or a night at the pub with your crew, and suddenly it's "bring me a bottle of this, bring me a piece of that."
Or maybe it's a solo window shopping trip that turned into spending money you never planned to touch on things you never intended to buy.
It's understandable. I used to be exactly like that. But here's what I started doing instead.
I take out the exact amount of money I want to spend, and that's it. No extra cash, no credit card, which cancels out impulse purchases entirely.
A while back, I hung out with two old friends from way back. I set aside $150 for cocktails, and that was it. I didn't bring my card. We had our talk, we had a great time, and that was that. Whatever wanted to happen after the $150 ran out just didn't happen, because that was my budget.
You should try that too. Exercise some discipline, because it doesn't come automatically. Set a budget for what you need for the week, or for a specific outing, and stick with it. Leave your card at home too. That way, you're forced to stay within your budget, and you'll be glad you did.
The simple, basic truth is this: you cannot spend money you don't have.
So try it. Take out just what you need, and stick to your budget.
Having fun on a budget is quite different from splurging. Splurging means spending a lot more than you normally would, usually on something you want rather than something you need.
You might say, "I'm going to splurge on myself this weekend. I'm going to treat myself and spend more than usual." Then you drop $250 on a dinner when your regular spend is $50. That's a splurge, and it's completely fine once in a while, whether you're celebrating a milestone or just want to feel good.
But having fun on a budget should be the habit. Splurging should be the exception.