One of the most exhausting parts of personal finance is the constant second-guessing:

Can I afford this?

Should I be saving this money instead?

What if an emergency comes up next month?

Even people earning well up to six figures still face this invisible tax. And that is where the “Safe to Spend” Formula comes in. It is a framework designed to show you how much you can safely spend without sabotaging your future goals or triggering guilt (Like at any moment). And this is not about budgeting or even limiting fun, it is about helping build a flexible system to spend. 

In this article, I will show you the process of how to use the “Safe to Spend” method to build a Financial System That Lets You Spend Without Guilt or Guesswork

Why Do you Second-Guess Your Spending

For every problem, there is always a root cause, so the reason why most of us second-guess our spending is because we lack structure.

When your money is not clearly divided by purpose, every expense feels like a threat to your financial health. Rent, savings, groceries, and fun all come from one bucket, so each transaction feels like a mental math test.

And in order to fix this, we need to move from our regular used system to a purpose-driven system, which starts with defining what’s truly safe to spend.

The “Safe to Spend” Formula (STS):

In the safe to spend method there’s a formula that helps you determine what is safe to spend on and it is: 

STS = Total Income − (Fixed Costs + Automated Goals + Buffer)

Note: STS means Safe To Spend

So don’t worry you don’t need to be a mathematics genius to do this. Let me take you through: 

Total Income: This is the total amount of money you’re earning from your workplace or the device you’re providing. 

Fixed Costs: These are your non-negotiables like rent, bills, foodstuffs & groceries, and transportation. I mean these are the things that must be paid, no matter what.

Automated Goals: This includes savings, debt repayment, investments, emergency fund contributions, like anything you’re paying your future self first and should always happen automatically right after you get paid.

Buffer: This is your safety net, a small token (often 5–10% of income) that stays untouched in case of surprises, timing misalignments, or emergencies.

So Whatever is left after covering these three is your “Safe to Spend” amount.

Now let me show you an example:

  • Take-Home Pay: $4,000
  • Fixed Costs: $2,000
  • Automated Goals: $1,200
  • Buffer: $200

So now you can spend $600 on whatever you want without guilt or anxiety. New clothes, Dinner with friends, Solo retreat, anything you want. 

How do I apply this to my financial life 

To make this work you have to follow through the process of: 

  1. Automate everything except your STS amount. Use bank rules or apps like Balancc, YNAB, Monarch Money, to move funds into “Goals” and “Bills” categories the moment income drops.
  2. Create a separate debit card or spending account for just your Safe to Spend money. 
  3. Review monthly to adjust. And when you get a raise, Update your goals and fixed costs, then recalculate. 

Why does this system Work

This formula builds confidence into your money system. You’re no longer relying on gut feelings or mood-based decision-making. You have a clear number, signaling a green light.

Most importantly: it changes your mindset from “Should I?” to “I already planned for this.”

Bonus: A much more effective way is to break your STS into a weekly allowance if you want even tighter control or want to avoid overspending early in the month.

Example: since your safe to spend is $600/month and we have 4 weeks. Divide the $600 by the 4 weeks and the result is you'd have $150 to spend weekly.

This is especially helpful if you’re impulsive, ADHD-prone, or managing an inconsistent income.

JSYK Real financial freedom is about cutting out fun, but is all about never having to worry about whether you’re messing up your future. The “Safe to Spend” Formula gives you that clarity. You’ll know your goals are covered, your needs are protected, and your lifestyle is funded intentionally. And with Balancc you can achieve the results you desire.