It may sound like a lot but this gives you some Wiggle room to spend some money on things which will probably make you happier and make saving a lot easier because you won't ever need to touch your savings to buy something you need because you spent money you'd budgeted for something else on "non-essentials" because you just had to. What do you think of this?
So how would this go? 20% savings, 30% for non-essential expenses, then 50% for your needs? If that's the case then I guess it would be a good idea. Although my inner saving freak is telling me to shut it and make it 10% for your non-essential needs and 40% for your savings. I've always loved saving and investing money more than I love the material things in life. It's like a drug really, just seeing your money grow into amounts that you've only dreamed of before.
There are times that I go shopping on a whim and there are times that I don't have the appetite for shopping. For the essentials, we have a list particularly for grocery items. But for non essentials like treats - ice cream, cake, and other non essentials, we can do without so it is just part of my purchases when I'm in the mood. By the way, that 30% is a big amount to be set aside for non-essentials. Realistically for me is just 5% perhaps.
I don't know if that's a realistic goal. If youre spending that much of your income on non essentials, then I don't think you are managing your money very well to begin with. You'd be better off saving most of that. Of course, you want to have some fun with your hard earned dollars but 30% seems a bit much to me.
