When you think of trimming expenses in your budget, entertainment is typically the first category to get slashed. It’s easy to rationalize the cuts since this category isn’t a necessity. The problem is, if the cuts go too far, you might start to feel like something’s missing. You can’t be all work and no fun. Life is about finding ways to create balance. This is why entertainment expenses shouldn’t be eliminated entirely without consideration.
We’re here to look at ways you can save money without sacrificing fun. Often, it comes down to being a bit more creative with your free time.
Always Start with a Realistic Budget
Before you can start trimming costs, you’ll need to have a budget. Your income and expenses should be clearly laid out so you know how much is coming in and how much you’re spending monthly. If you’ve never built a budget before, there’s no need to stress. Several free apps make budgeting simple and quick. Just look for an app that allows you to customize your categories so it’s tailor-made for your needs.
When building your budget, make sure you’re honest about your true spending habits. It can also be helpful to choose an app that tracks expenses in real time. That way, it takes all the guesswork out of budgeting and ensures nothing is overlooked.
Once you’ve had a look at where your money is going, it will be clear which categories you can make adjustments to. Fixed expenses like mortgage, rent, car loans, utilities, and insurance typically remain the same.
Use Credit Cards with Loyalty Rewards
Statistics show that 82% of U.S. adults have at least one credit card. In other words, if you have one, you’re definitely not alone. Of that number, 48% of people carry a balance on their card at all times. So here’s the thing: if you’re going to have a credit card, why not get something out of it?
Banks and lending institutions that offer credit cards tend to offer at least one or two options that provide a loyalty reward of some sort. Rewards can include discounts, credit (cash applied to your credit card balance), gift cards, travel-related rewards, products, and more. The key is to find the credit card that offers rewards you’ll use.
Cashback Tools Can Be Incredibly Useful
Speaking of getting something back, you’ll also want to look at cashback tools. You’ll find most cashback tools online, which provide you with a reward or cashback on purchases made. An example of this type of program is Rakuten. You simply install the extension on your computer or use the app, and then shop through the Rakuten portal. Each purchase you make at participating locations earns you cash back.
If you’re going to be shopping anyway, why not get something extra back for your spending?
Engage in Affordable Hobbies
Finding hobbies that you enjoy in your free time is one of the best ways to bring balance to your life. Each person’s definition of a fun hobby will be different, so don’t be afraid to branch out and try a few different things. The good thing about hobbies is that they don’t have to cost a fortune.
When it comes to entertainment-based hobbies and options, look for ones that don’t require a big upfront cost. You want to be able to spend what you feel comfortable with. There are plenty of activities you can do that cost little, if anything. Chief among them are running, cycling (assuming you already have a bike), birdwatching, and hiking.
In the digital realm, there are plenty of free mobile games you can play right on your phone or tablet. Also take a look at social casinos, which are totally free to play, or online casinos with a $10 deposit offering a low-risk form of fun if you want to enjoy the thrill of gambling without overspending. These games can be played on your mobile device, which means you don’t need to purchase additional hardware like a gaming console.
Give Secondhand Shopping a Try
It’s easy to say you’ll stop shopping, but it’s also not realistic. Whether it’s out of need or want, it’s hard to avoid buying things. So, how can you save money? Take this opportunity to give secondhand shopping a try! Secondhand shops, yard sales, and online buy-and-sell groups can offer significant savings on items. You may even find some treasures along the way.
Embrace Cooking at Home
As people look at their discretionary spending, dining out and takeout food often add up quickly. Buying meals can be more convenient, faster, and — let’s face it — more delicious. But as tempting as dining out may sound, if you’re trying to cut costs, this is the perfect category to focus on. Embracing cooking at home can not only save money but also open your eyes to new recipes, ingredients, and cuisines.
For people who don’t necessarily see themselves as seasoned home chefs, try searching for beginner-friendly recipes and videos online. Give yourself a little grace, too, because we all know practice makes perfect.
Set Up Automatic Saving Deposits
While this tip may not directly reduce your spending, it’s still incredibly important to your overall finances. Saving money for a rainy day or to cover unexpected costs is just smart financial planning. A great way to do this is by setting up an automatic savings deposit. You can set it up weekly, bi-weekly, monthly, or whatever you want. Once it is automated, you don’t have to worry about remembering to put aside money.
You Can Have Fun Without Blowing the Budget
As each of these tips demonstrates, it is possible to have fun without blowing your budget. Finding affordable and fun hobbies, being creative with how you spend your money, and looking for ways to get more from purchases are all great places to get started.
