Entertainment Expenses

• People differ in what they list as entertainment expenses. The category should include any hobbies, going out on the weekends, satellite television and movie rentals. You can break down the category into smaller categories, but all of these expenses should be included. Vacations and recreational travel should also be included in your entertainment costs. Necessities should always be covered before entertainment costs.
  
  

Consider Financial Goals

• Every budget should include entertainment costs. If you don't plan any entertainment into your budget in an attempt to reach your financial goals, it's too easy to become frustrated with your budget. However, your entertainment category shouldn't stand in the way of reaching your financial goals --- sacrifices do need to be made. For example, you may choose to go out only one weekend a month while you're getting out of debt, or you may choose to go hunting every year instead of buying a new boat.
  
  

Set Amount vs. Percentage

• One way to allot funds to your entertainment expenses is to use a percentage of your income as your entertainment budget. Five to 10 percent is a reasonable starting point, but if you have a low income or work for minimum wage, you may not have this much of your income free after covering your necessities. When cutting back or looking for extra money, you may want to decrease the amount you use for entertainment each month. If you're working toward a goal, set a limit for entertainment costs, such as $100 per month. If you have a family, you may need to increase this amount.
  
  

Monthly vs. Annual Entertainment Costs

• People usually have two different types of entertainment costs. The monthly costs --- e.g., as eating out, going to the movies --- is the first category. The second category consists of annual costs, including vacations, pool memberships or season's tickets for sporting events. The two combined categories should be considered when making budget cuts, and the annual costs should be included in the monthly budget by setting aside money for them each month. People sometimes choose to sacrifice their monthly entertainment costs to purchase tickets to sporting events or to take nice vacations each year.