My monthly draw covers all basic expenses, plus a little extra to cover what one might conveniently call "sundry and miscellaneous spending", which includes fun money. Some months, I might choose to spend the extra on cheap eats out, visits to coffee shops etc, or I can choose to go easy on the spending for a month or two in order to "save up" for something a bit more pricey. It's a lot like living as a teenager with an allowance (Boy, I can't
wait for SS to come on board
)
For a few years, most of my fun money was getting spent on radio parts for my (then) hobby of building ham radio/SWL gear. Then, when the ham mojo disappeared, I recently bought my first new camera in 10 years, and have been having fun walking around town taking extremely boring pictures of everything I see - people, cats, dogs, leaves, sidewalks etc. It's funny how, when you have a new camera, everything suddenly becomes fascinating and well worth looking at
Going forward, some of the extra money will be used to renew my 2 passports. That's not exactly a fun expenditure, but it falls into the "everything above and beyond basic expenses" category for me. I'm hoping to ease up on buying "stuff" so I can spend the extra on more cheap eats, visits to coffee shops, and perhaps even a trip or two.
Budgeting is easy for me, as my basic lifestyle is so simple, and quite inexpensive. I'm a renter with cheap rent, who doesn't own a car. If something extremely fun, and relatively expensive came up, that I just had to do, I'd simply take the money our of the portfolio and not worry about it. At an approximately 2% WR, with SS coming online in the future, there's a little leeway.