If you’re confused about whether something is a need or a want, simply ask yourself, “Could I live without this?” If the answer is yes, that’s probably a want. It simply means being more conscious about your money by finding areas in your budget where you’re needlessly overspending. And if you discover that you’re spending too much on your wants, it’s worth thinking about which of those you could cut back on.Īs a side note, following the 50/30/20 rule doesn’t mean not being able to enjoy your life. Take a good look at the pie chart you just created. Click on any white space near the chart, and drag it over to the right. Select the pie chart, and then click on the Insert button (at the bottom left). Using the same example as above, if your monthly after-tax income is €2000, you can spend €600 for your wants. The second one (the colorful circle) is called a pie chart. Entertainment subscriptions (Netflix, HBO, Amazon Prime).The doughnut chart should now look like more like a progress chart. Repeat steps 1 & 2 for the remainder bar, and select a light color or gray. Go to the Format tab in the ribbon and change the fill color to a bold color.
Wants are defined as non-essential expenses-things that you choose to spend your money on, although you could live without them if you had to. Left-click on the progress bar twice to select it. With 50% of your after-tax income taking care of your most basic needs, 30% of your after-tax income can be used to cover your wants.
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