Planned expenditure savings 15 %
This is savings category for short term savings towards a predefined purpose. Such planned expenditures could be the purchase of a car, a down payment for the house we are to live in, education for our children or other short term and slightly longer term purchase decisions or expenditures we are going to need to use money for.
15 % looks like very little, however we can reduce our expenditure from pur necessities column to add percentage points to this category. Never reduce amounts from the tithes and charity or giving to parents. Also as a rule, never reduce any percentage from your wealth multiplier account. You will need ti spend money on transport, housing and education for your children, so it is good to have a category planned that includes all these needed expenses .
Vacations and entertainment 5 %
I believe this is thee least important catgory and we can have even less of a percentage here if others are more needed. We talked a lot in the first two chapter about delayed gratification and finding ways to unwind without spending money, things such as going for a walk, enjoying a hobby like cycling, or playing with our children to unwind. If we need a holiday, why not visit a family member or someone we know who enjoys our company and let them dothe same with us. This saes on hotels and other unnecessary expenditure. Why not consider going for local holidays instead of holidays abroad ?
If this is really important to us and our finances are in order, and we want to hae a holiday and can afford it, go ahead, but no more than 5% of our income should go towards this.
It is important to regularly take breaks and enjoy life with our children, however, we should keep our financial goals as a priority in our mind. If our holiday is going to be a setback in our financial future and we are going to take money from our wealth multiplier account, then I think we have to realize ourselves and also teach our children that it is just not worth doing it. We should never sacrifice out future on the altar of the now.