What is a key reason to include discretionary spending in a budget?

Including discretionary spending in a budget is essential for ensuring enjoyment and personal fulfillment. Discretionary spending refers to non-essential expenses that enhance the quality of life, such as dining out, entertainment, hobbies, and vacations. By allocating funds for these discretionary items, individuals can enjoy their financial resources in a way that brings them happiness and satisfaction.

This aspect of budgeting recognizes that while managing finances is crucial, having set aside money for personal enjoyment can motivate individuals to stick to their overall budget. It encourages a balanced approach to spending where individuals can meet their financial goals while also allowing themselves the opportunity to indulge in experiences that bring joy and relaxation. This holistic approach helps promote a healthier relationship with money, as it addresses both the necessity of budgeting and the importance of enjoying life.