Tracking My Monthly Expenses Over 4 Years: Am I Ready for Barista FIRE?

I have been tracking my income and expenses all the way since 2008.  However, all these while I have only been recording, but did not evaluate and analyse my expenses all these years.  Since I have the intention to begin my first phase of Barista FIRE next year, I think it is time for me to analyse my expenses, so I can estimate the minimum amount of part-time active income I will need to achieve next year in order for my cashflow to be healthy.

Looking back at my expenses from 2022 to 2025, I am quite surprised at how my spending pattern evolved over these few years (and probably I have underestimated my expenses all these years).  I have always believed that being mindful about expenses is the foundation of financial independence and not just earning more, but also learning to live well within my means.  However, reality may be a little different from expectations.  Probably it is time for me to be more mindful of my spending.

Four Years Of Data: The Story Behind The Numbers

The chart I compiled shows my monthly expenses across four years: 2022 (green), 2023 (blue), 2024 (red) and 2025 (yellow).  Each line tells a slightly different story (all expenses here includes my cash mortgage payments as well as insurance payments):

2022 (Green):  This was a transition year for Covid in Singapore, as normality returned after most of the population had undergone vaccination.  This was also the year I started my solo travel journeys.  For the year, my spending was relatively modest, fluctuating mostly between SGD 2,500 to SGD 3,500.  There were some dips mid-year and slight spikes toward year-end, but overall, my expenses were consistent and relatively low.  Exceptionally high expenses in January was due to insurance payment.

2023 (Blue):  Expenses rose slightly.  There were months where I spent above SGD 4,000, but the yearly average still stayed below $3,800.  I attributed this to increased short trips, as this was the year I started bringing my mum for sponsored trips, where our first stop was to Ho Chi Minh City.  Though the trip was not without 'struggles and squabbles', but it was also money well spent with precious memories created together.  Exceptionally high expenses in January was due to insurance payment, which was soon terminated by me when I managed to change to another plan in the following year.  The high expenses in November was due to flight tickets and hotel bookings for my trip with mum to Japan in the following year.

2024 (Red):  The spending pattern became more volatile as more travel, family expenses, and lifestyle indulgences pushed some months past SGD 5,000.  This was mainly due to the 2 extended trips I went with my mum, to Japan in May, and to China in November.  The increased expenses in April was due to flight tickets and hotel bookings for my trip with mum to China at the end of the year, while increased expenses in October was due to the new insurance payment.   Besides the exceptional months, my overall spending remained within reasonable range, though average expenses had increased rather significantly year on year.  Overall, this year's average spending was the highest due to my plan to be a mile chaser to accumulate sufficient miles in order to redeem business class flight tickets for a one time experience with my mum.  

2025 (Yellow):  This year saw quite a wide fluctuation in expenses to end of October.  I had some low-spending months around SGD 2,500, but also sharp spikes exceeding SGD 6,000 in September.  The higher expenses in June was due to flight tickets and hotel bookings for my trip with mum to China at the end of this year again, while increased expenses in September was due to monies set aside for insurance payment and home repairs.  Undoubtedly, the data suggested that lifestyle inflation has crept in a little, though not excessively, but it is time for me to be mindful.  In addition, the fact that I have stopped chasing miles this year may have helped to suppress the lifestyle inflation a little.

Annual Expense Overview

To put things in perspective, here is an approximate summary of my annual spending trend:

Year    Average Monthly Expenses (SGD)    Estimated Annual Expenses (SGD)

2022                        3,420                                                    41,040

2023                        3,680                                                    44,160

2024                        4,040                                                    48,480

2025                        3,750                                                    45,000

Over four years, my annual expenses have risen about 20% (ignoring 2024 it will be 10%), averaging an annual inflation of roughly 5%, which is higher than the national inflation rate.  That is a sign that lifestyle comfort has expanded a bit - more experiences, more travel, better food, and occasional splurges.  As I progress to Barista FIRE, it is probably a good time for me to remind myself and keep my expenses in check.  However, yearly trips with my mum to create more memories will continue, albeit at a slightly lower frequency.

Evaluating My Readiness For Barista FIRE In 2026

My plan has always been to achieve Barista FIRE by next year (2026) - meaning I will live partially off my dividends while still doing part-time tutoring work.

Here is my current setup for next year:

1)     Projected dividend income in 2026: approximately SGD 32,000/ year or SGD 2,670/ month

2)     Target withdrawal from dividends for expenses in 2026: SGD 1,500/ month

3)     The remainder SGD 1,170/ month can be reinvested for compounding.

That leaves me needing to cover the rest of my expenses through active income.

Given my recent average monthly expenses of around SGD 4,000:

Category                                    Amount (SGD)

Total Monthly Expenses:                   4,000

Funded by Dividends:                         1,500

Required from Active Income:          2,500

To sustain Barista FIRE comfortably while maintaining some buffer for inflation and unexpected expenses:

1)     Minimum Monthly Income: SGD 2,600 – This would allow me to cover all essentials and some discretionary spending, assuming I keep lifestyle inflation in check, with only mandatory 9% contribution to Central Provident Fund (CPF) Medisave Account (MA).

2)     Average Monthly Income: SGD 3,000 – This gives room for travel, insurance, healthcare, and savings replenishment, but with only mandatory 9% contribution to CPF MA.

3)     Average Monthly Income (Comfortable Zone): SGD 3,600 – This gives room for travel, insurance, healthcare, and CPF contribution, with a sufficiently comfortable buffer.  This aligns rather closely with my calculation, where I earn around SGD 3,600/ month of active income, with about SGD 1,000 going to CPF (mandatory MA and voluntary 3 accounts contribution), SGD 1,400 for mortgage payments and the remainder (combined with SGD 1,500 from dividends) for living expenses.

If all works well in 2026, I may progress to the next phase of Barista FIRE starting 2028, where I may fund my lifestyle with an increased SGD 2,000/ month from dividends, while reinvesting the rest of the dividends.  I will continue to document my progress, reflecting on my journey.  I would probably document the outline of my plan in my next post.

My Reflection

Tracking and evaluating four years of spending has been eye-opening.  It definitely made me more aware of my expenses and a good reminder to keep my spending in check, as I probably has been underestimating my expenses recently.  While my expenses have crept up gradually, the increase has been purposeful to a certain extent- better food, more travel with my mum, and a higher quality of life.  That is not lifestyle inflation for the sake of status, it is intentional spending on what brings meaning and memories.

With my dividends providing approximately SGD 31K annually (in 2025) and a lean monthly income target of around SGD 3K, I can say rather confidently that I am on track to start phase one of Barista FIRE next year, with both freedom and sustainability in balance.

Financial independence is not about cutting every cost to the bone.  Instead, it is about designing a lifestyle where my money serves my values, not the other way around.  As I step into my Barista FIRE phase, my focus will shift from accumulation to more of preservation with slight accumulation.  Hopefully with the progression in phases, all will work out fine.  Barista FIRE, here I come...!