Love how you all talk through things and have tough conversations. I agree budget beats broke every time. Not sure how successful it will be not to allot any money to misc spending. But it makes sense that at least half of it should go to pay back the over spend.
I know this goes completely against what you said in the video, but maybe the answer is to find a way to increase the miscellaneous "panic" money. If you lower some of the savings goals, and increase the money you can spend when you feel anxious about something maybe you'll be less likely to go overboard. I just don't think that cutting out your miscellaneous money for a few months is the way to go, because if you spend you'll feel you did something "wrong." In my budget, if I go over I usually cover it within that month by moving money from my variable spending categories. It's opportunity cost: if I overspend in beauty I have less for groceries, for example. Sorry this was such a long comment!
