Good reminder on these. My personal preference is to divide the day thus:

8 hours for sleep (lately not fulfilling this much – 7 on a good day)

4 hours for work

4 hours for commute time (but, since I’m taking the bus, these are “free” hours – reading, meditating, being).

2 hours for meals (which, on most days, are shared with 43Things entries, and other items)

1 hour for formal meditation (hopefully; divided into two half-hours)

5 “Free” hours left over, as in your model, that are then filled with working on non-income producing interests, such as loving my beloved, creativity, contact with friends, fiddling with the computer, and just plain wasting time. :-)