What do you include in your spending money? Is that random bills that pop up? Is that eating out, Or new clothes, or activities? If it's purely your "let's go see a movie, do we have enough? " Then yes, it should be plenty. But if this is for ANYTHING not accounted for already (unexpected change in bills, books for school, random need to pay for vehicle registration, etc) then I would work on having some fully funded sinking funds before taking the cut to income.