How much money should I be spending on myself?

The basic financial planning rule is that housing costs shouldn’t take up more than 30 percent of your monthly income, groceries and personal items should be around 10-15 percent, and utilities around 10 percent. Self-care should take up much less than that — about 5 percent of your budget, maximum.

Is it OK to spend money on yourself?

High-quality experiences or purchases that give lasting pleasure can stave off burnout and “frugal fatigue” that might otherwise cause people to abandon their money goals. …

What should I spend 100 dollars on?

No matter where your finances wound up this year, we’ve compiled 15 tips to help you stretch that Benjamin even further in 2012.

• Open a college savings plan.
• Pay down debt.
• Stock up on frozen food.
• Open a Roth IRA.
• Take your pet for a check-up.
• Open a Certificate of Deposit.
• Make minor home repairs.
• Invest in your career.

Is it OK to spend money on things that will make you happy?

So not only is it OK to spend money on things that will make you happy now and then, it’s the right thing to do! I believe a big difference between people who are self-assured about their spending and those who aren’t (because they’re either spending too much or not enough), is that the self-assured spenders are spending with intention.

How much should I spend on my needs vs my wants?

Whether you call these things “fixed expenses” or “non-discretionary expenses”, your needs are things like housing, food, clothes, transportation, medical, and minimum debt payments. Therefore, if you’re making $100,000, that means that $50,000 should go to your needs. Next, 30\% of your take-home pay should go to your wants.

Should you spend 30\% of your pay on wants?

You can’t spend 30\% of your pay on wants if you already have 90\% committed to bills and savings. Whether it’s due to a relocation to a new city or a jump in the cost of living in your hometown, your spending is guaranteed to fluctuate over time.

How much should you spend on housing a year?

Well, let’s dig into that. Of the money you’re spending on your needs, only 25-35\% should go to housing. Therefore, if you make $100,000, then you should be spending $25,000 – $30,000 a year on housing, or $2,083 – $2,917 each month.