2. Determine what you like to do most. If you want to spend your money appropriately you have to decide what things you like to do, and make sure you include things you will do no matter what. So, if you are going to see every new movie that comes out, be sure that is a top priority because that is what is going to put you over budget when you spend your spending money elsewhere. These items are your priority and these items are going to help you determine exactly how to spend your money.

3. Determine what your spending money budget needs to cover. If you have a birthday party to go to and the gift falls into your spending money budget, make sure you make note of it as you determine allocation. If you have to pay for the gas for your car to get you to and from your entertainment, etc. that needs to be included in the determination of how to spend your spending money. So, be specific with yourself about what must be covered by the spending money, and make sure you budget appropriately with these things in mind.

4. Decide how often you can do things based on above assessments. So, now look at what you determined above. For example, let's say you determined you have $200 a month for spending money. This needs to cover any eating out, movie watching, gift giving, and miscellaneous purchase (such as a new mop, or phone, or shirt). You love seeing movies, and love getting new clothes. You have two birthdays this month, and you want to spend about $20 on each gift. You like to eat out for lunch on Fridays. Well this means that you have $160 after the gifts. If you are going to eat out all four Friday's and spend about $10, you now have $120. You like to buy at least one new shirt a month, and that will run you about $20. Which means you now have only $100. If when you eat out you spend about $50, that means you have $50 left for movies, so if you spend $15 a time, you can go to 3 movies this month, and spend no more $5 on popcorn.

5. Set spending money schedule. Now you have a clear picture of how you can spend your money to stay in budget and spend it appropriately, so look at your month and divide it up. Put the gift purchases in the appropriate places depending on when the birthday is. Give yourself one movie a week, eat out on the week you do not see a movie, and buy your shirt on a week you know you will be busy and stressed so that you have a stress reliever.

If you can do this you will never go over your spending money budget, and you will get appropriate entertainment and fun in ample amounts. You will know what you can do for fun, and what does not work if you want to have fun the next week as well. It is up to you to decide if you are going to appropriately or haphazardly allocate your spending money, however if you can do the above things it will be allocated appropriately.