(This concept has not been fully flushed out yet, just jotting the thought down to come back to it later)
One of the greatest things that you have as a child is time. Unfortunately you are too stupid to know how valuable that it actually is. I think that there exists a gold ratio although in my mind I debate on the correct portions over time. The general principal is this if you have a $100 and are thirty it would make more sense in the long term to invest that $100 then to spend that $100 since it will work harder for you compounding over time. However you can’t just save everything you have to live your life too plus fix stuff. So my budget philosophy has become something like this.
Anything you spend above necessities has to be directly proportional to the amount of money that you for example for every dollar you save you can spend 50 cents so if your disposable income is $15,000 you save ten you can spend $5000.00 the trick I have noticed is if I set the savings goal first. Say in the year saving I have to reach X before I spend Y then I reach my savings goals much earlier and with greater accuracy then if I just spend and save as I go.
But as time winds down that ratio changes and starts to hit parity. When I am 75 I might as well just spend $100 rather than save a $100.
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