Lately, it certainly feels like food expenses, especially when dining out, have been climbing. Is this just a perception, or do the numbers tell a similar story?
A quick comparison of our spending data for the first half of the year, as illustrated in the above chart, reveals something interesting.
While our overall monthly expenses have edged up by about S$100, or roughly 1.4%, the amount we spend on food and groceries has actually remained quite stable, even dipping slightly by about 2%.
This figure doesn’t include savings from CDC Vouchers, which I’m anticipating will be phased out eventually.
Perhaps, without even realising it, we’ve unconsciously reduced our frequency of dining at restaurants, which seems to have helped offset the increasing cost of eating out.
While this overall spending shows a slight increase, a deeper dive into specific categories reveals some significant shifts that contribute to the bigger picture. Let’s take a closer look at where our money is really going.
Leisure/Vacation: The 65% jump is mainly due to the recent Taipei vacation.
Compared to a year ago, when we just had a short getaway to Bintan, the further destination and longer duration naturally cost more. It’s money well spent as we had a wonderful time together.
Insurance: Amount paid for insurance ballooned by 50% this year!
Both my spouse and I crossed the age band, resulting in the significant increase in premium for private hospitalisation plan. This is an expense that I am monitoring closely, and I am likely to downgrade our plans eventually, as it no longer make sense to pay for the excessive premium.
Tax/Donation: For the first half of last year, I was still paying my 2023 income tax due to the GIRO arrangement. Without it, expenses for this category plummeted by 85%!
Medical/Appearance: It feels good to see a near to 60% drop in medical expenses.
I needed to bring my daughter to see a skin specialist last year for her acne situation. With the issue resolved last year, there isn’t a need for further follow-up, resulting in the much reduced expenses.
Besides the above four categories, the spending has remained fairly stable.
As per usual, I am anticipating higher expenditure for the second half of the year due to premium for critical illness insurance and a longer year-end school holidays.
Besides, there is likely to be more home improvement work, to repair and replace the older interior finishes, furniture and appliances. Consequently, this will drive up the spending further.
At the beginning of the year, I have budgeted S$96,000 spending for this year. Based on current situations, I should be able to keep within that and maybe I can bring it down further to S$90,000.
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