It’s time to do a quick review of spending for the year. As a reminder, here’s how I categorise my expenses using action words to make them more meaningful.
Anticipating higher spending on vacations, electronics, and furniture this year, I initially budgeted S$90,000. However, we were fortunate to capitalise on sales to reduce costs. Additionally, we deferred certain purchases as existing items are still in good working condition.
As a result, our average monthly expenditure was approximately S$7,100, which is S$400 less than the initial budget and only a slight increase to the previous year.
I have excluded government subsidies like U-Save and CDC vouchers. While I appreciate the support, it’s prudent to assume these may not be permanent.
I will briefly highlight the categories that saw significant changes to previous year.
Celebrating and recharging: The increase in spending is primarily due to our recent cruise vacation. It was wonderful to have my parents and in-laws joining us for this memorable trip, and I am happy to pick up the bill.
Creating a loving home: Much like a company’s capital expenditure, our home requires regular maintenance and upgrades. This year, we invested in replacing our water heater, washer, and vacuum cleaner, as well as repairing a broken window hinge.
A quick tip: When planning to purchase significant household items, consider waiting for sales or flash deals on platforms like Shopee. We saved around S$300 by taking advantage of a flash deal on our new washer!
Connecting with others: The surge is due to the recent purchase of iPhone 16 for missus. Again, I waited for yesterday’s 12-12 sale and save about S$100.
Educating children: This is simply due to my daughter stopping her piano lessons.
Contributing to the community: The drop is attributed to not having to pay income tax for the last assessment year. However, this year I proudly participated in the A Very Special Walk 2024 challenge, helping to raise S$2,700 for the Autism Resource Centre (ARC).
Thanks to everyone who joined me in supporting ARC’s incredible work. You can find the full list of articles I wrote for The Smart Investor here.
This holiday season, let’s extend our financial wisdom beyond our portfolios. If my articles resonated with you, consider donating to a cause you care about on giving.sg. It’s a privilege to be able to invest, so let’s all strive to give back to those in need.
Should You Track Your Expenses?
You might be wondering, “Is it really worth the effort to track expenses?”
I completely understand. For years, I didn’t bother tracking my spending, as my year-to-year expenses were relatively stable. Plus, with consistent savings, I didn’t see the need.
However, in recent years, two significant changes prompted me to revisit this practice: leaving my regular job and the rising inflation. I needed to ensure my lifestyle was sustainable and use data to inform future decisions.
Surprisingly, thanks to digital payments, tracking expenses has become easier than ever. The real benefit, however, is I’ve become even more aware of what matters to me, such as prioritising experiences like our unplanned family cruise, while consciously (maybe subconsciously) reducing other spendings.
Given my current financial obligations, I’ll continue tracking my expenses to maintain a sustainable lifestyle. With some home improvements postponed to next year, I’ve budgeted an average monthly expenditure of S$7,300.
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