My way is as follows. Have three accounts: current, savings and retirement. The first two are cash, the third is something more long term. First work out the percentage of your income that you need to go into your retirement fund to maintain your current lifestyle when you retire. I plan to retire at 50. Your salary will get paid into your current account periodically. When it does, you check how much was still in your current account from last month and (hopefully) move the correct amount to your retirement fund. Whatever is left after that goes into your savings account. You can spend your savings on things you don't need like car, holiday etc. But never spend it all as you don't want to liquidate your retirement in an emergency. You'll know you always have enough in your current account for your essentials (bills, groceries). You never have to worry.