“The heart wants what it wants—and my brain is in cahoots.” Sound familiar? If you’ve ever tried budgeting and felt like your emotions and logic are working against you, you’re not alone.
Budgeting can feel restrictive, especially when you’re juggling multiple spending categories. But it doesn’t have to be that way. There’s a simpler, more flexible system known as proportional budgeting—and it can completely change how you think about money.
Understanding Needs vs Wants
At the core of proportional budgeting is this: understanding the difference between needs and wants.
- Needs are essential for survival or your basic well-being—think groceries, rent, utilities, and transport.
- Wants are everything else—fun, lifestyle perks, or upgrades. Think weekend getaways, subscriptions, or that gym membership you barely use.
The problem? There’s a lot of grey area. You need clothes—but do you need five pairs of designer jeans? You need food—but do you need imported, truffle-infused artisan bread?
Recognising what’s truly essential is the first step to spending more intentionally.
Try the 50-30-20 Budgeting Rule
One of the most popular proportional budgeting frameworks is the 50-30-20 Rule, made famous by Harvard economist Elizabeth Warren. Here’s how it works:
✅ 50% for Needs
Spend no more than half your after-tax income on essentials like:
- Housing and rent
- Utilities
- Basic groceries
- Minimum debt repayments
- Transport
✅ 30% for Wants
This is your lifestyle budget—your fun fund. Use this for:
- Takeaways and eating out
- Travel and entertainment
- Streaming services
- Hobbies and shopping splurges
Yes, even your premium Wi-Fi or DSTV subscription falls here. They’re nice to have, not must-haves.
✅ 20% for Savings and Debt Repayment
This portion goes toward your future financial health:
- Emergency savings
- Retirement accounts
- Paying down loans and store cards beyond the minimum
Pro Tip: Minimum payments count as “needs.” Anything extra you pay is a win for your savings and future.
Can’t Tell the Difference? You’re Not Alone
Separating wants from needs isn’t always easy. Emotions get involved, and suddenly that new phone feels absolutely essential. As the saying goes, “The heart wants what it wants.” And your brain? It’s often very good at finding reasons to agree.
Here’s a mental trick: ask yourself “Can I survive without this?” If the answer is yes—even with some inconvenience—it’s likely a want.
But don’t worry if you still struggle to keep those two separate. There’s another method that might suit your mindset better.
The Simpler Option: The 80-20 Rule
If you want to make budgeting easier, try the 80-20 Rule:
- Save 20% of your income first (for savings and debt repayments)
- Spend the remaining 80% however you like
No need to stress about labelling every item as a need or want. As long as you’ve paid yourself first, you’re in a good position. It’s a great option for anyone who feels overwhelmed by category-based budgets.
Want to level up? Try 70-30 or even 60-40 later on. The more you shift into saving mode, the more freedom you’ll find in your spending.
Budgeting Isn’t Restriction—It’s Alignment
Whether you use 50-30-20, 80-20, or your own system, the goal of budgeting isn’t to deprive yourself. It’s to align your spending with your values. When you do that, every purchase feels more intentional—and less like an impulse or regret.
Need Help Getting Started?
- Want to see how the 50-30-20 Rule fits your current income? Try our [online budgeting calculator]—get insights and even earn rewards.
- Prefer mobile budgeting? There are several smartphone budgeting apps in South Africa that can help simplify the process.
- Need a hand with your finances? Speak with one of old mutual friendly advisers. They offer telephonic or face-to-face consultations with professionals who can help you sort through your income, expenses, and financial goals.
And don’t forget: you can download the Old Mutual app via the Apple App Store, Google Play Store, or Huawei App Gallery to manage your rewards, savings, and policies on the go.
The Bottom Line:
When you understand the difference between your needs and wants, you can take full control of your money. Budgeting becomes less about sacrifice and more about empowerment—and that’s a win for both your heart and your wallet.
