<p>It’s not a budget, it’s a spending plan. :)</p>
<p>Plan to spend some money on fun stuff, but I wouldn’t stop saving unless you are absolutely positive you could survive a disaster. Those employees of Enron thought they had a retirement fund. Many Katrina disaster victims thought they had hurricane insurance. Well your family be okay if you have a massive heart attack tomorrow and spend twenty years severely disabled? It happened to the Dad of a friend of mine. They went from wealthy to penniless.</p>
<p>I agree with mathmom - whatever you do, don’t stop saving completely. Stuff happens. Occupations and industries that are “recession-proof” turn out to be just as vulnerable as everything else.</p>
<p>My (very profitable) employer recently closed a research site and laid off 2000+ employees (including me), mostly highly-paid and highly-educated scientists. The job market for experienced chemists and biologists is brutal. Right now I’m thanking my lucky stars that my husband and I lived WAY below our means for the last 20 years, because I’ll be making 40% of my old salary in my new job. </p>
<p>Im not complaining (I’m luckier than most -at least I FOUND a job), but I am warning: you never really know what the future holds, except that it does hold lots of expenses (like tuition and health care.)</p>
<p>Your wife is worrying about the “bag lady syndrome”. I often see women age between 50-60s pushing a cart with all their belongings in a city near where I live, that is what motivated me to save more. But sometimes enough is enough, you have to start enjoying your money, otherwise what is the point of saving.</p>