When the holidays roll around, it's common to spend more. December 2023 was no exception, with lots of socialising and extra expenses.
Here's a simple breakdown of what went on with the December 2023 budget:
Spending Went Up: In December, we spent 8% more compared to the previous month. This happened mainly because we spent a lot more on our lifestyle, which tends to happen during the holidays.
Changes in Food and Drink Spending: Overall spending on food and drink was reduced by 39%. Coffee led the charge with a reduction of 72% this month.
Gifts and Lifestyle: December is a big gift-giving month. Our gift spending shot up by a massive 194%, and we also spent more on hobbies, which added up to a 20% increase in lifestyle spending overall. Afterpay also took a large chunk here, gobbling up $750.
Buying Things for Hobbies: The extra hobby spending was mainly for things like art supplies or musical instruments. These might seem like a lot for one month, but they're things that will last and save us money on entertainment in the long run.
So, how do we plan for January 2024?
Spending Less: We aim to cut down our lifestyle spending by about half compared to December. This would bring us to November-level spending while keeping our reduced food and drink costs.
Using the Things We Bought: The hobby-related purchases made in December will create more entertainment at lower costs for the following months.
Keeping Food and Drink Costs Down: By meal prepping more consistently I reckon we can maintain our reduced spending on food and drink, and possibly reduce it further.
In summary, December saw a lot more spending, which is typical for the holidays. Our plan is to focus back on our finances and not lose sight of our goals. Current savings rate: 17%