I look at it roughly this way:
-Need are needs.
This is a really vague part.
Needs to be broken down. What are needs....
(Rent) Do I want to live in a nice condo or not?
Is getting new clothing for yom tov a need?
(Utilities)Is having a cell phone a need?
Is going out with your wife to a restaurant a need?
Is having a car a need or can you waste extra time and take a subway?
(don't want to sound depressing)
(Food)Is eating steak/fish/meat every night of the week a need?
There are many such questions and
that's what pple. Have to decide.
Do I want a lifestyle like A and have the consequences of being 110% in the needs or want to give something up.
Or will he go out and make more money so that the budget is balanced.