You can spend ũ값 a month on your "wants" based on that ū귔 you're bringing home each month. You might consider doing without a few things and shifting some of this money to your "needs" column if you're coming up short there_not necessarily indefinitely but until you can get your needs down to a more manageable level. Remember, you still need 20 percent left over so you can save and pay down your debts according to the 50ቺተ plan. Now you have 轜 left, that last 20 percent. You know what to do with it. Pay down on debt, save for an emergency, and plan for your future.
Step Three: Limit Your "Wants" to 30 Percent. This sounds great on the surface. Can you put 30 percent of your money toward your wants? Hello, beautiful shoes, trip to Bali, salon haircuts, and Italian restaurants. Not so fast. Remember how strict we were with the definition of a "need"? Your "wants" don't include extravagances. They include the basic niceties of life that you enjoy, like that unlimited text messaging plan, your home's cable bill, and cosmetic (not mechanical) repairs to your car.