TEMPLE, Texas — According to NerdWallet, the average American household spends $2,628 on entertainment per year, and entertainment spending increases when there are more people in the household. That’s not a vacation, that's just fun spending. So, you have to budget for it.
When does spending on fun and your hobbies become a problem? That's the topic of this Money Talks.
You work hard for your money, and you are the boss of how to spend it. That said, there is one thing that Financial Advisor Rolandus Johnson insists on when it comes to "fun money".
"The main goal is to make sure that whatever hobby it is and whatever kind of thing gets you going and relieves your stress, make sure it doesn't interfere with the things that you live day to day," Johnson told 6 News. "That's the one thing that I advise on."
Why is that? Because things like going to concerts or movies every weekend can get you in trouble if you don't prepare for it.
"Go to as many movies as you can but make sure that your mortgage is paid as well before you start going to watch all of the movies once a week," said Johnson.
Six months ago Johnson went to a conference where the theme was focused on what people prioritize. He said he was surprised by the answer.
"They were saying that people were planning longer for a three-day weekend than they will for 20 years in retirement living. So that's a real issue that couples face," Johnson said.
Johnson mentioned couples, that's something where people need to work together, and Johnson is all about compromise.
"Being on the same page with making sure that the necessities are taken care of first. Now, after that, if you've got money left over, everybody is going to have, you know, your spouse may like knitting or they may like craft hobbies, then the other spouse may like going golfing or going fishing, there are numerous things out there but the ultimate goal is being on the same page as a couple and making sure that the necessities are taken care of because those can really get in the way of your day to day living," said Johnson.
That's why Johnson says you should budget for your hobbies and fun and then a great deal of stress will be relieved!
"I'm a big advocate of that. When I’m sitting down with clients we set budget and investment plans all the time and so it always causes me to pause and say 'Well, ok, how much money is going to be left over for you because ultimately at the end of the day if you're not happy none of this is going to work.'"
Remember, the average American spends just under 2 thousand dollars per person per week on a vacation. That is above and beyond the ‘fun money’ that we just discussed. Tough to have it all sometimes in America!
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