What are the suggested percentages based on?
Entertainment Budget: Most budgeting advice suggests using 5-10% of take-home pay for entertainment.
Gambling Budget: Gambling is an entertainment activity. While everyone’s entertainment spending will vary, the suggested max of 30% of your total entertainment budget seems appropriate to ensure you can afford other leisure and keep your gambling at a healthy level.
What is included in an entertainment budget?
Suggestions often include dining out, movies, live events/shows/games, and recreational activities.
Here’s What to Include in an Entertainment Budget (link) – Take Charge America Nonprofit Financial Education
Isn’t 10% too low?
It all depends on what is included in your entertainment budget.
“Some advisers take a broader approach that gives you a set percentage of your income, such as 20 percent or 30 percent, to spend on nonessential expenses, which include gifts, vacations, clothing, eating out and entertainment.” – Sapling.com
Adjust the calculator to best align with your budgeting approach.
