21 Feb Tips to fight funflation
Having fun has never been more expensive but you don’t have to sacrifice your social life to keep your savings on target.
While the cost of most things has increased, the cost of a lot of things associated with having a good time – travel, movie tickets, sporting events, concerts, dining out, take away food and drinks – have all soared in the past few years in a bout of what some economists are calling “funflation”.
How having fun is more expensive
Holidays lead the pack as a major contributor to funflation, with the costs of a holiday overseas rising an eye watering 33 per cent in three years. Holidaying locally is a little less but still steep as we are now paying 19 per cent more to have a holiday in Australia than in 2021.
And if you think dining out is more expensive, you’d be right – restaurant meals are up 16 per cent over the past year, takeaway and fast-food prices are up 18 per cent. Going out for a drink? Beer is up 13 per cent.
The average price of a movie ticket has increased from around $14 to $16, according to Screen Australia; and if you want an ice-cream or snacks, you’ll find prices up 21 per cent and 15 per cent respectively since 2020, according to inflation data.
Meanwhile annual wage growth has been treading water at around 3 – 4 percent p.a. over the last couple of years, so your earnings are likely not even nearly keeping pace with funflation.
Budgeting for fun
A recent survey of consumer spending habits found a whopping 49 per cent of Australians said they’d been cutting back their spending on nights out and socialising, a figure 10 per cent higher than the rest of the world. But you don’t have to become a hermit to keep your spending in check and your savings on target.
One of the best ways to manage your money is to know where it goes. Although doing a budget is not much fun, it can give you an idea of where your money goes and how much you have to spare for the fun things in life. When you do a budget make sure there is a little allowance for the good things in life – whether that is a holiday or the occasional night out with your mates. Checking in with your finances will also identify if there are any areas you are a bit loose with your spending and could be tightened up without sacrificing too much in the way of having a good time.
There are a lot of ways you can still manage to have an amazing time and keep a lid on your spending. Here are a few ideas:
Fun without blowing the budget
Keep track of your spending – make decisions before you head out for the night about what level of spending you are comfortable with and what you want to spend money on, so you don’t get caught up in the moment and blow the budget.
Have a games night or movie night – Grab a few board games and invite some friends over for a games night or pile up the cushions and break out the popcorn for a movie night in your lounge room to catch up with friends.
Go exploring – Get a group of friends together and explore an area of your city you may not know very well. You could walk or use public transport – or do both – try taking a train, bus or ferry to a nice spot and go exploring on foot.
Bring back the progressive dinner – Avoid expensive dinners by organising a ‘potluck’ BYO at your place where everyone has to bring a plate, or better still, bring back the 70’s progressive dinner by moving from house to house for each course.
The magic moments in life don’t have to be the expensive ones – here’s to the joys of frugal fun!
