When developing a spending plan, do not think about how much you have spent in the past. How much you spend now should be based upon the goals you have set. List all needs and wants. Decide how much of your resources (i.e. money) will be spent on each item.
Ideally, you will divide your income and other resources as follows:
50% be spent on Needs
30% be spent on Wants
(Source: Elizabeth Warren and Amelia Warren Tyagi in their book, All Your Worth: The Ultimate Lifetime Money Plan)
It helps if all members of the family agree on the spending plan. It is important to recognize that there may not be sufficient resources for all needs and wants. When this happens, you have to decide how important the need or want is.
The case of Angeleq is an example.
If you were Angeleq, what would you do?