When creating a budget, most people usually dedicate a certain figure to entertainment. However, this is often the first item to be struck off the budget when an individual wants to increase their savings or achieve a goal faster.
The entertainment budget is usually regarded with the same contempt as sin tax. But, that allocation is necessary. It is a way of rewarding oneself for a job well done.
It helps you nurture relationships and sweetens life’s experiences. Most people, however, don’t know what to include and what to leave out of an entertainment budget. Here is what to consider when creating one:
Your overall budget
What to include
The percentage
“If your monthly expenses include rent, transport, airtime, home internet, household shopping, food, family, entertainment, and Sacco savings, then 50 per cent of your income should include needs only,” says Ochieng. These are rent, food, family, airtime and the internet, and a special allocation known as ‘Things I forgot to budget for!’ That way, the 50 per cent allocation will not be too tight.
The 30 per cent section will include self-development, and this is where your entertainment allocation should fall in.
“This section is for things that are necessary for your long term well-being. They range from health, entertainment with friends, networking and tithe,” says Ochieng. It is out of these it that you will squeeze in the leisure budget. You can then save the remaining 20 per cent.
Going frugal
“I have tried the zero entertainment budget plan for a month. It worked out well, but then I realised that there are some things I like to do that cost little. It is therefore prudent to have some buffer so that in case you end up spending a little on the things you love, it won’t leave you in debt,” Ms. Maddox said.
Take advantage of Covid-19
“Many have found new and cost free ways of having fun without compromising their health. These include indoor activities such as camping in the backyard, grilling and baking,” says Ms. Maddox. As economies reopen and fun places such as the museum and parks emerge from the ruins of the pandemic, there is bound to be lots of promotions and discounts. Tap into these by checking out the discounted coupons and offers you can go for on a budget. Be creative.
