First, know what you have to spend on fun. Frankly, budgets only work if you put the time and effort in to creating them well, and sticking to them. If you typically spend $500 a month on entertainment, and you decide to cut it back to $300, it won't happen without work. So, take time to figure out what you typically spend on entertainment, and once you do, make a realistic goal to cut it back. This means if you usually spend $500, try to spend $450 this month instead, and you will be more likely to do so. Keep track so that when you approach your limit you know you are there, and if you cross it you do it consciously, instead of having no idea where you are. Sometimes just seeing how quickly the movie rentals, meals out, etc. add up will give you the motivation to be better with your money, have fun, and still have money left.

Second, plan and fill your time with low cost options. A dinner out is far more expensive than dinner in with friends, and both offer a lot of fun. So, when you are working to curb your spending, and still have entertainment, consider setting up plans that will be low cost so that you have things to do (as boredom often leads to overspending), and that will keep you occupied. For example, have a standing game night on one day of the week, where your friends all get together to play cards, board games, or even video games. Have everyone bring a snack, and have a fun night for under $5.

Third, always ask if you can have as much fun for less. Sometimes you spend more on your entertainment then you need to simply because you do not think to ask if there is a cheaper way. If you have plans to go play laser tag, take a few seconds to go on the internet to see if you can print a coupon for a discount. Using a little forethought can help you keep your entertainment costs low, and your fun factor high. This is going to be really good for your budget. Sometimes choosing other options is better. For example, instead of paying to go to a skating rink, consider roller blading down a trail, or through your neighborhood. Instead of seeing a movie, get a group together and play volleyball at a community park. There are ways to have fun and spend less, as long as you get out of your expensive entertainment rut, and explore your options.

Learning how to have low cost fun will help your finances for years to come. It is a habit that if you get into will save you money your whole life.