I have followed a slightly different approach to decide my spends. for example If my current net worth is 2Cr then I am allowed to buy a car worth 20L i.e. 10% of my current net worth. Similarly for all major spends I decide how far I can go. This way I feel one can indulge without putting their financial health at risk.
% of spends and target corpus etc can be decided at a personal level for e.g. international vacation only after reaching xx amount.
This way you are not depriving yourself of anything and making sure you spend within a comfortable limit for self.
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