Consider this. Follow this simple formula 25%/50%/25% to prioritize your money to achieve your goals.
25%: Save for your rainy day fund, your next holiday, your children’s tertiary education needs AND your own retirement.
50%: Pay your “needs”. Your monthly mortgage, monthly utility bill, groceries, car loan, allowance for your parents to thank them for bringing you up etc.
25%: Spend on your wants and hobbies. Dining at that new fancy restaurant. That new bag?
Feel free to adjust the formula, say if you’re the main breadwinner in your family, your formula can be 60% on needs/20% savings/20% spending.
IMO, if we ‘begin with the end’ in mind and see money as a tool to help us achieve our financial goals, we’ll know where our money is being deployed meaningfully. This way we can sustain this saving and spending pattern over a period of time. 😉
Have fun creating and designing this formula for yourself and your loved ones.