A popular way of thinking about where to spend your money is the 50-30-20 framework. According to this, up to 50% of your income can be spent on "needs", 30% on "wants" and 20% on "savings". Important to note, these percentages are calculated on POST-tax money in your pocket, not pre-tax salary.
Needs: This covers things that are not optional. Rent/mortgage, utilities, fuel, groceries, healthcare, insurance, minimum debt repayment.
Wants: This covers optional spending that you'd like to have/see/do but can live without. Generally includes things like restaurants, vacations, concerts/sporting events, nicer clothes/jewelry, upgrading gadgets/phones every couple years, entertainment, Netflix, Spotify, etc.
Savings: self explanatory since you don't wanna end up being the next geriatric Walmart greeter.
You could argue that mongering belongs in the category of "Wants" and I think that would be appropriate. However, you can't blow the entire alottment on WGs alone. You must have some other wants so I'd say 20% of your salary is way too much to be blowing on this, especially if you're calculating on pre-tax money. It's likely your "wants" spending is way higher than it should be if mongering is taking up 20% of it. | |
