Spending money on fun should not be abandoned as costs climb

Cutting all the fun out of life to combat rising living costs is bad for your wellbeing, money experts say. Here’s how to find balance.

Consumers are being urged to try to keep spending on some of life’s little luxuries, despite surging living costs crunching their finances.

Cutting out all the fun things is bad for people’s wellbeing, money specialists say, but they warn that some changes may be needed to survive the current cost-of-living crisis.

As a perfect storm of increased housing, food, fuel, utilities and energy costs strikes household budgets everywhere, people may need be more creative with money, they say.

“It’s important for most individuals to enjoy some planned discretionary spending every now and again to feel like they have choices,” said money coach Karen Eley.

“By factoring some splurges or enjoyment spending, you reduce the risk of having a total budget blowout when you finally crack under pressure.”

Money coach Karen Eley says understand your values first. Picture: Heidi Wolff

Ms Eley said she preferred planned spending on luxuries, rather than spontaneous spending that could do more damage by making a financial situation worse.

She said people should spend money based on their values and what was important to them.

“Determine your top five values – such as family, love, financial security, adventure, fun, health, safety, growth – and avoid totally cutting back in these areas,” Ms Eley said.

“You can also create substitute spending. If health is a value, perhaps give up a gym membership and start running or some other healthy activity that costs less, or nothing. If growth and knowledge is a value, borrow library books instead of buying books.”

MyBudget director Tammy Barton said finding a balance between financial responsibility and personal enjoyment was crucial, especially in times like now.

“Cutting back spending on things you enjoy can really impact your overall happiness and wellbeing in a negative way,” she said.

“It’s important to try and find ways to reward yourself, even in tough times.

“Often it’s the smaller things that give you the most joy. You just need to ensure that these enjoyable things fit within your budget and are affordable.”

Ms Barton said a budget helped people determine spending that could be cut back, and show what enjoyable activities could be afforded.

MyBudget’s Tammy Barton says find ways to reward yourself. Picture: Brenton Edwards

“The longer you’re depriving yourself of things that bring you joy, then feelings of deprivation, stress and even resentment comes into play emotionally,” she said.

Author and behavioural economist Phil Slade said some people used spending to “self-medicate” to try to improve their psychological health.

“Sometimes we try to spend as a way of feeling good about ourselves,” he said.

“The trick is to learn to find enjoyment in the simple things that are right in front of you.”

Mr Slade said still spend on things that “fill up your bucket of energy” but expensive activities could be sacrificed for cheaper, but still fun, ones.

“As you are trying to cut back your expenses, if you focus on what you are missing out on you will be grieving for the loss,” he said.

“People mistake that grief for poor mental health, but it’s just grieving, and it will pass.”

“It’s not about getting rid of everything that’s fun in your life – fun doesn’t have to cost. Kids often have the most fun with the most inexpensive things.

Behavioural economist Phil Slade, author of Going Ape S#!t?, says fund doesn’t have to cost.

FUN WITHOUT THE COST

• Make frugal fun, setting challenges among family or friends to creatively save cash.

• Seek alternative sources of enjoyment, such as switching from expensive jet skiing or motorbike riding to bushwalking or surfing.

• Consider proven self-care activities such as walking, slow breathing, meditation and laughter.

• Learn some DIY skills to get household tasks done cheaper and in a personally rewarding way.

• Remember that inexpensive entertainment can be fun too. Think movie nights at home, meals where everyone brings a plate, or birthday parties in parks.

Source: Money specialists

Originally published as Spending money on fun should not be abandoned as costs climb