I’m 40 and while pinching every penny for retirement, I missed out on having fun in my 20s and 30s — can I have both without wrecking my future?

Meet Angie.

At 40, she’s on $300,000 across her 401(k) and other savings accounts — far more than most Americans her age (2). With an $80,000 salary, she’s already surpassed the common benchmark of having three times your income saved by 40 (3).

She’s proud of her being a good saver and the retirement it promises. Still, she wonders if she’s missing out on life. She skipped girls’ trips in her 20s and turned down so many nights out that some of her friends eventually stopped asking. Now she wonders if she sacrificed too much — and if she’ll even know how to have fun when she finally retires.

So how can Angie — and others like her — loosen their financial grip without losing control?

Angie’s financial situation

Angie lives in Texas and brings home about $5,500 a month after taxes (4). She pays $700 for health insurance and contributes $675 to her employer-matched 401(k). To keep costs low, she splits an apartment with a roommate, paying $800 a month.

On top of her retirement savings, she saves another 15% — about $825 — toward her emergency fund and other investments. That leaves around $2,500 for bills, groceries and discretionary spending.

She’s built an emergency fund could cover nearly a year of expenses. But because she grew up with parents who worked seasonal jobs, she’s always felt that money could disappear overnight. Saving, to her, feels like survival.

Lately, though, she’s realizing it might be time to breathe a little (6).

Finding balance in the budget

With her savings in great shape, Angie can afford to loosen up — maybe by redirecting some of that money toward experiences she’s been putting off. A big vacation. A summer rental with friends. Even just more dinners out.

She could start by reviewing how much she’s actually spending on fun. The popular 50/30/20 rule says 50% of income goes to needs, 30% to wants and 20% to savings (7). That means Angie could comfortably spend up to $1650 a month on fun without jeopardizing her future.

Here’s a sample breakdown she could follow:

• Rent: $800 (15% of income, well below the 30% guideline)
• Utilities: $275 (5%)
• Groceries: $800 (15%) — any leftover can roll into dining out
• Transportation: $200 (less than 5% with a transit pass)
• Insurance: $675 (12%)
• Giving: $550 (10%) — donating can actually make spending feel more rewarding, according to financial experts like Dave Ramsey.
• Saving: 5% — she can safely scale back here, given her strong nest egg
• Miscellaneous: 5% — for unexpected expenses or extra savings at month’s end
• Lifestyle and entertainment: $1,650 (30%) — guilt-free fun

For someone used to pinching every penny, this may feel indulgent. But trying it for a few months could be an eye-opener.

It might also help to meet with her financial advisor. Together, they can run retirement projections and see if Angie’s current pace of saving could overshoot her needs. If it does, that’s all the more reason to spend a little more now — and enjoy the wealth she’s worked so hard for.

How to evaluate your own budget

You don’t need to be as strict as Angie to benefit from rethinking your budget. The best budgets aren’t the tightest — they’re the ones you can actually stick to.

Here’s a common breakdown that works well for many people: