Most of us struggle to follow a budget. In fact, 83% of Americans say they find it hard to stick to one. But there\u2019s a dedicated few who treat their budgets like a law \u2014 or even a religion.<\/p>\n
Budgeting is smart. It allows you to live within your means, save for the future and avoid nasty financial surprises. But can you overdo it? (1)<\/p>\n<\/p>\n
Meet Angie.<\/p>\n
At 40, she\u2019s on $300,000 across her 401(k) and other savings accounts \u2014 far more than most Americans her age (2). With an $80,000 salary, she\u2019s already surpassed the common benchmark of having three times your income saved by 40 (3).<\/p>\n
She\u2019s proud of her being a good saver<\/a> and the retirement it promises. Still, she wonders if she\u2019s missing out on life. She skipped girls\u2019 trips in her 20s and turned down so many nights out that some of her friends eventually stopped asking. Now she wonders if she sacrificed too much \u2014 and if she\u2019ll even know how to have fun when she finally retires.<\/p>\n So how can Angie \u2014 and others like her \u2014 loosen their financial grip without losing control?<\/p>\n Angie lives in Texas and brings home about $5,500 a month after taxes (4). She pays $700 for health insurance and contributes $675 to her employer-matched 401(k). To keep costs low, she splits an apartment with a roommate, paying $800 a month.<\/p>\n On top of her retirement savings, she saves another 15% \u2014 about $825 \u2014 toward her emergency fund and other investments. That leaves around $2,500 for bills, groceries and discretionary spending.<\/p>\n She\u2019s built an emergency fund<\/a> could cover nearly a year of expenses. But because she grew up with parents who worked seasonal jobs, she\u2019s always felt that money could disappear overnight. Saving, to her, feels like survival.<\/p>\n Lately, though, she\u2019s realizing it might be time to breathe a little (6).<\/p>\n Read more: Are you richer than you think? Here are 5 clear signs you\u2019re punching way above the average American\u2019s wealth<\/a><\/p>\n With her savings in great shape, Angie can afford to loosen up \u2014 maybe by redirecting some of that money toward experiences she\u2019s been putting off. A big vacation. A summer rental with friends. Even just more dinners out.<\/p>\n She could start by reviewing how much she\u2019s actually spending on fun. The popular 50\/30\/20 rule says 50% of income goes to needs, 30% to wants and 20% to savings (7). That means Angie could comfortably spend up to $1650 a month on fun without jeopardizing her future.<\/p>\n Here\u2019s a sample breakdown she could follow:<\/p>\n Rent: $800 (15% of income, well below the 30% guideline)<\/p>\n Utilities: $275 (5%)<\/p>\n Groceries: $800 (15%) \u2014 any leftover can roll into dining out<\/p>\n Transportation: $200 (less than 5% with a transit pass)<\/p>\n Insurance: $675 (12%)<\/p>\n Giving: $550 (10%) \u2014 donating can actually make spending feel more rewarding, according to financial experts like Dave Ramsey.<\/p>\n Saving: 5% \u2014 she can safely scale back here, given her strong nest egg<\/p>\n Miscellaneous: 5% \u2014 for unexpected expenses or extra savings at month\u2019s end<\/p>\n Lifestyle and entertainment: $1,650 (30%) \u2014 guilt-free fun<\/p>\n For someone used to pinching every penny, this may feel indulgent. But trying it for a few months could be an eye-opener.<\/p>\n It might also help to meet with her financial advisor. Together, they can run retirement projections and see if Angie\u2019s current pace of saving could overshoot her needs. If it does, that\u2019s all the more reason to spend a little more now \u2014 and enjoy the wealth she\u2019s worked so hard for.<\/p>\n You don\u2019t need to be as strict as Angie to benefit from rethinking your budget. The best budgets aren\u2019t the tightest \u2014 they\u2019re the ones you can actually stick to.<\/p>\n Here\u2019s a common breakdown that works well for many people:<\/p>\n Adjust it to fit your lifestyle. Love to travel? Stash some cash in a separate account each month so you can book that flight next summer without guilt.<\/p>\n More of a gym rat? Budget a set amount for classes and gear so you can chase the latest fitness trend \u2014 whether that\u2019s rucking or reformer Pilates \u2014 without debt following you around (8).<\/p>\n At the end of the day, money is a tool. It\u2019s there to serve your goals \u2014 both the ones you\u2019re planning decades ahead and the ones that make today worth living.<\/p>\n So if your budget feels more like a straitjacket than a strategy, take a page from Angie\u2019s book: loosen up a little. You\u2019ve earned it.<\/p>\n Join 200,000+ readers and get Moneywise\u2019s best stories and exclusive interviews first \u2014 clear insights curated and delivered weekly. Subscribe now.<\/a><\/p>\n We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.<\/p>\n Nerd Wallet (1<\/a>); Wisebread (2<\/a>); CNBC (3<\/a>); Salary After Tax (4<\/a>); Nasdaq (6<\/a>); Citizen\u2019s Bank (7<\/a>); Gym Desk (8<\/a>).<\/p>\n This article originally appeared on Moneywise.com<\/a> under the title: I\u2019m 40 years old and I\u2019ve saved hard for retirement but skipped the fun \u2014 can I do both without wrecking my future?<\/a><\/p>\n This article provides information only and should not be construed as advice. It is provided without warranty of any kind.<\/p>\n","protected":false},"excerpt":{"rendered":"Most of us struggle to follow a budget. 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