This week somebody asked me how much fun money we have set aside in our budget, and if $550 a week seemed too much... When she was talking "fun" money, this girl included everything but utilities, groceries (and necessities), other bills etc. into this number. So it's eating out, fun with a family, gifts, clothes shopping and anything and everything that might fall in between.
And yes, $550 a week seems a little too high for me. In fact, that is only slightly less than our whole monthly budget was for the longest while, including mortgage. But my first question for her was whether or not she could afford it. Her husband and she are both professionals and make good money. They have two cars, both paid off, no mortgage or any other consumer debt, and they set aside a certain amount into retirement every month. So in their case, I think they can afford it if they really want/need to spend that kind of money on unnecessary things.
I did tell her that I personally would not spend that much for something of such little value. I think, it's important to have some fun money. But I would rather take a big chunk of it and put it into savings. Another way how I would spend extras are vacations. If they just trimmed their expenses to $500 or so a MONTH, they could afford to go to a nice place for two of them in just a couple of months. To me, experiences are much more valuable than things or life's little pleasures. I prefer to have big ones... but on a budget :)
But this conversation made me curious... How much money do you set aside for "fun"? And how did you determine this number?