Americans spend roughly $3,138 every year on digital entertainment alone, while they spend $3,292 on in-person entertainment sources each year. These figures add up and account for streaming services, concerts, nights out, and even gambling. Fun can certainly eat into the budget faster than you think. Can you imagine planning a vacation with that budget? The good news is that entertainment is possible without overspending. Discover how to enjoy entertainment that fits into your budget so that overspending becomes a past mistake.
The Importance of Entertainment Budgets
Overspending on entertainment can reduce what you have in your checking account and disrupt your financial goals. People typically underestimate how much they overspend, especially regarding entertainment. Here’s why you should avoid overspending on your entertainment:
- You could delay retirement or vacation goals.
- Compound credit card interest adds up faster than you think.
- Entertainment doesn’t feel exciting if you experience post-fun guilt.
- Overspending reduces financial flexibility and emergency funds.
Entertainment should be a part of every budget because we all need some time to kick back and relax. However, maintaining a balance between fun and affordability will lead to financial stability and peace of mind while you get the time to enjoy doing what you love.
1. Choose Gaming Options That Pay Back More
Choose an online casino with higher payout rates if you enjoy a game of chance as a favorite form of entertainment. Online casinos with a higher return-to-player (RTP) rate and lower wagering requirements allow your budget to stretch further while you enjoy playing slots, poker, roulette, blackjack, aviator, or baccarat. These platforms publish their payout rate, with some having an average RTP of 96% to 99.56%. A game with a 96% RTP will statistically return $96 for every $100 spent. The higher RTPs matter in longer play sessions.
You can also review the slot game’s paytables to see the RTP and volatility information, or you can choose blackjack tables with a lower house edge to stay in the game longer while having a chance to win something back. Always choose a low house edge or high RTP casino game to stretch your entertainment budget and avoid overspending. No wins can be guaranteed, but you can enjoy longer playtimes with better values for the money you spend.
2. Rotate Your Streaming Services
Streaming services are another cornerstone entertainment type every person enjoys, but some households juggle multiple platforms. Deloitte’s latest digital media consumption trends report shows that the average household has four digital subscriptions for streaming services, spending an average of $69 per month. However, many platforms aren’t in use for weeks at a time. Instead, rotate your subscriptions to avoid overspending.
Sign up to Netflix for a month to watch a new series as it launches, but pause the subscription if you switch to Disney+ or Hulu for a new series that you follow on that platform. Rotating services can save between $15 and $30 per month, which adds up to hundreds of dollars every year. You also avoid content fatigue because you get a new library to enjoy every couple of weeks instead of scrolling endlessly through the same content.
3. Focus on Free Local Events
Find new ways to save money by checking community calendars for free or affordable film screenings, art walks, concerts, and seasonal festivals. Many US cities host summer film nights in a local park or free live music festivities in public spaces. Some local libraries also often host author readings, free workshops, or game nights.
Looking for free local events balances your paid entertainment with those that cost nothing. You may still attend a professional sports game occasionally, but mixing it up with some free local events from your community can help you enjoy more entertainment without added fees.
4. Budget Your Nights Out
Live shows and restaurants take a massive chunk out of your budget. A night out or two is possible when you master entertainment budgets by limiting how much you’ll spend on every single aspect using a zero-based system, including food and tickets. Set clear limits, and stick to them. Here are some added strategies to use:
- Allocate in advance the nights out per month.
- Limit spending with lower-cost venues like comedy clubs versus premium theaters.
- Enjoy dinner at home before heading out to save money on food.
5. Use Memberships and Seasonal Passes
Theaters, museums, and even amusement parks often have annual passes that reduce the cost over time. For example, buying an annual pass to New York’s Metropolitan Museum of Art will cost less than four general admission tickets. You can also take advantage of other memberships that enable free perks when visiting other places. For example, even e-commerce and retail store memberships save money.
An Amazon Prime membership costs $139 per year, but you get free shipping, music, books, videos, and games, and you also benefit from the Whole Foods discounts. This allows you to purchase more items for at-home entertainment nights and enjoy access to free games and other entertainment sources from the comfort of your home.
6. Entertain Yourself at Home
People can be resourceful, even when stuck at home. Hosting a game night with your best friends or streaming live concerts are some budget-friendly ideas. Even setting up a backyard movie night can create memorable experiences without spending more money. You can also reduce dining out expenses by setting up weekly dinner parties with friends while rotating between houses.
Consider how much money you could save on each evening, and they don’t need to be lonely. A cinema visit for four friends could cost around $80 for snacks and tickets. However, renting a digital copy and providing snacks only costs around $20 to $30.
7. Enjoy Experiences With Lasting Value
Not all entertainment provides long-term value. An expensive nightclub visit may be exciting for the moment, but it won’t encourage you to do something that serves lasting value, like contributing to an emergency fund. When emergencies strike, you won’t remember the night out. You’ll only regret not saving more money. Prioritize experiences that leave memorable impressions so that you can remember the good times, even if emergencies arise.
Learn a new skill at a workshop or take a low-cost road trip with friends. The lasting memories that come from these experiences won’t make you regret money spent on a fancy nightclub when you need money. Alternatively, weigh the cost per hour to determine whether the experience is worth the cost. A $15 museum ticket that lasts four hours offers more value than an $80 concert ticket for 90 minutes.
8. Create a Rolling Entertainment Budget
Don’t only budget the nights out. Use the 50-30-20 budget to strategically ensure you have fun while taking care of your bills. Make entertainment a crucial part of your budget, as you would groceries or rent. Assign specific amounts to make sure you feel no regret when spending your entertainment allowance. However, stop spending once the budget runs dry.
Make things more exciting with rolling funds, where any change from one month rolls into the next month’s entertainment budget. That way, you’ll always have flexible room to plan for those occasionally expensive concerts and holidays.
