Many people feel guilty whenever they spend money on things that aren’t considered necessities. Whether it’s dining out, buying new clothes, or going on vacation, spending on “wants” often comes with the fear of being financially irresponsible. But according to Genesis Kelly Lontoc, a Registered Financial Planner, who shared his insights with Financial Adviser PH, you don’t have to feel guilty—as long as your spending is intentional and within your budget.
“Financial literacy is not about converting people to become misers. Fun is part of human nature, but fun should be budgeted so it can be sustainable,” Lontoc explains.
Why You Shouldn’t Feel Guilty About Spending on Wants
Completely depriving yourself of non-essential expenses can lead to financial burnout. If you only focus on saving and never allow yourself to enjoy your hard-earned money, you may eventually feel frustrated and give up on budgeting altogether. The key is balance.
This is where the 20-50-30 budget framework comes in.
“The last step in the framework is to allocate 30% or whatever is left to wants. These are items that make life more pleasant but are really not that essential in living,” Lontoc shares.
By setting aside a portion of your income for wants, you can enjoy your money guilt-free—because you know you’re still prioritizing your savings and needs.
How to Spend on Wants Without Overspending
Budget for fun. If 30% of your income is too high, adjust the percentage to what feels right for you.
Prioritize what brings you the most joy. Instead of spending impulsively, focus on experiences or purchases that genuinely make you happy.
Review and adjust. If times are tough, reduce discretionary spending—but don’t eliminate it entirely.
The Bottom Line
You don’t have to feel guilty about spending money on things you enjoy. As long as you have a structured budget that prioritizes savings and needs first, spending on wants can be part of a healthy financial plan.
