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Subject Expert
Your budget should reflect your priorities.
You are balancing short term wants vs long term wants vs freedom from work.
Then it’s just discipline to be strong enough to avoid spending which doesn’t align with your goals, and will cause regret.
You say you are making good progress to FIRE, so I don’t see a problem.
Make a budget that allows a large amount of “fun money” and carry on
If you spent less you could retire much, much earlier. But that’s your choice!
Life is too short to not enjoy the time you have now. Make sure you're not limiting your fun too much.
One perspective: Depends on how much asset you have now. Savings matter a lot when just getting started.
It matters less when the amount you target to save is roughly equaled to your expected rate of return.
You can really relax when your expected return largely exceeds your savings rate.
Subject Expert
I don’t agree with this. At one extreme you could start spending so much that you push out your retirement by many years, or ruin it altogether. When you say “relax” all i hear is work (a lot) longer
When you are close to your actual FIRE number (25x spending) then perhaps you can think about working longer to increase the amount you can spend, and make it pretty stress free.
I see the budget as a tool to help you understand how much you can spend while still meeting your financial goals. That said, my wife doesn’t really use it (though we review it together), but she is just very frugal. I don’t stick to it religiously, but I can see if I am going way off track and correct. I used to do it fairly conservatively so was generally beating it. Now it can go either way as I changed when I finalize it and things are relatively consistent.
Also, getting on the same page as your space is about way more than the budget. Prioritize some kind of alignment.