You are smart to be thinking this way!! First off, try to live on 50% of your earnings; that is, the necessities; what are necessities? pretend you just lost your job, but had some savings..NOW what would you spend/not spend money on? those are the necessities!! Next, use 20% to spend on whatever you want!! Then, save 30% of your take home pay!! If you followed this plan your whole working life, you'd have some advantages over most people: * You'd be able to enjoy your interests,hobbies, etc., by using the 20%; no feeling 'deprived'!! * You'd have the incredible feeling of living BENEATH your means; that is, owing no credit card bills, etc.; if you have a credit card, you should PAY IT OFF IN FULL EACH MONTH........If you can't you are living ABOVE your means, and that is not COOL!!!! * You will slowly but surely save money that, in time, you can invest in a no-load mutual fund (never heard of that? go online and learn about it!!) again, in time, you will have a nice investment fund, bank account, etc., and no money worries.....unlike most people today!!!! I know I threw a lot at you, and maybe it's more than you wanted to hear, but this is what I learned, the hard way.....try it!! Email me if you have any questions or concerns!!! Good luck!!!