Anyone who’s ever tried their hand at creating a budget knows that it can be quite tricky to find the perfect balance between what you need and what you want while also trying to stick to a certain limit. To create a balanced budget, you need to be very mindful of both your income and your spending habits.
Of course, you might check out some Super Bowl odds if you decide to place a bet here and there for entertainment purposes, but you’ll make up for it by saving on something else. The fact of the matter is that you have to splurge every now and then to be happy. Living just to pay bills and save money isn’t really living at all, is it? Therefore, let’s see how much to splurge, and how much to save so you can have a perfectly balanced budget.
What are some examples of things you can splurge on?
There are a few different types of things you can splurge on, depending on your needs and wants. For some people, it may be important to splurge on quality over quantity. This means that you would rather have a smaller number of higher-quality items, rather than a large number of lower-quality items.
It’s important to spend your money on things that will make you happy and fulfilled rather than just things you think you should have. This could apply to anything from clothes to appliances. Another example of something you could splurge on is experience. This could be anything from taking a cooking class to going on a luxurious vacation.
What are some examples of things you should save on?
There are a few things you should always save on, regardless of your budget. First and foremost, try to avoid debt, to begin with. Saving by paying bills on time, consolidating debt and avoiding monthly minimum on credit cards ultimately leaves you with more money. Cutting down on expenses wherever you can is also a great way to have enough money left over to spend on what you really want.
How much should you spend on necessities vs. luxuries?
There’s no easy answer when it comes to how much you should spend on necessities and luxuries. It really depends on your personal circumstances and what’s important to you. However, as a general rule of thumb, it’s generally advisable to spend more on necessities than luxuries. This is because, at the end of the day, we all need food, shelter, and clothing to survive. While luxuries may make our lives more enjoyable, they’re not essential for our survival.
The main takeaway is that you should always be mindful of your spending and try to find a balance between what you need and what you want.