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What percentage of a paycheck should be spent on 'unnecessary' items?
So I'm in college and over the summer I'm planning on doing a full-time paid research internship for 8 weeks. Right now I have a job that I work on the weekends for gas, my animals, and necessities, and I work on saving with those paychecks as well. However, approximately $4800 is the most I will have had at one time. I plan on putting most of it into savings, but there are plenty of frivolous items I want such as books, boots, wooden models, etc., so I want to set a baseline before I get my hands on any money. I was thinking somewhere around the 10 to 15% range, is this reasonable? It still seems like too much money to spend on myself, haha.
- ?Lv 71 month ago
However much is left over after you pay for all the "necessary" expenses (food, rent, insurance, etc), have enough in short-term savings to cover emergencies, and are on track to pay for necessities in retirement.
So it depends on your current income, the cost of living in your area, your expected future earnings, and factors such as health.
- Anonymous1 month ago
It depends on what your financial goals are.
I was already investing in an IRA by your age. And now that I'm 50 and can retire anytime I want, I'm really glad I started young and was disciplined about it.
With every single paycheck you have the choice of making yourself rich (saving/investing) or making someone else rich (spending). It's up to you to decide what kind of life you want, how important financial security is to you, how long you want/need to work, etc.
Yes, it's good to spend some money on ourselves! But IMO you have to be able to afford that. Meaning is spending "fun money" preventing you achieving your medium and long-range goals such as buying a car, buying a house, paying for a wedding, retiring young enough to enjoy it, etc.