The Frugal Doctor doesn’t track expenses to optimise every dollar. Instead, I track mine to see whether my money is buying the life I actually want. In 2025, my total spending came in at $69,967. On its own, that number doesn’t say much. However, the shape of that spending tells a far more interesting story. To make sense of it, I divided my annual expenses into three categories: necessary, discretionary, and occupational. This breakdown helps me calculate different FIRE (Financial Independence, Retire Early) numbers. It keeps me motivated and grounded on the journey. Because of how we manage our finances, these figures include my contribution to our shared household expenses.
2025 Spending: The Big Picture
At a glance, the story becomes clear. A significant portion of my spending went to the basics: housing, food, transport, and health. These are the costs that keep life stable and predictable. At the same time, a meaningful share went toward deliberate choices. Travel, family support, and experiences that added space and texture to the year. What matters most is the balance between the two. Enough spent on stability to feel secure. Enough spent on choice to live intentionally.
The Necessary (35%)
These are the costs that keep life stable and functional. They’re the quiet scaffolding holding everything else up. What stands out here isn’t excess, it’s restraint. Clothing barely registers. Most of this money went toward staying housed, fed, mobile, and healthy. Groceries, in particular, are the quiet heavyweight: 7% of everything I spent went to food at home. That tells me something important. I value cooking, routine, and probably comfort more than I consciously realise.
Using the 25Ă— rule, this implies a necessary FIRE number of approximately $625,000. Encouragingly, my current financial independence portfolio already covers this comfortably
The Discretionary (48%)
This category shows the choices I made on purpose. This is where the year becomes recognisable: the movement, the relationships, and the things I said “yes” to. Most notably, nearly 28% of my entire year went to travel. That reflects our four-month mini-retirement, which shaped both our calendar and our spending. Additionally, as an immigrant, supporting family overseas is not just an expense. It’s both a responsibility and a deeply held value.
When I run the numbers, discretionary spending comes to $34,000 Ă— 25 = $850,000. Once again, my financial independence portfolio already covers this subtotal. From a mindset perspective, this is powerful. Knowing that even my discretionary life is financially supported brings a sense of calm and confidence. With time, both necessary and discretionary expenses will be fully sustained by the portfolio.
The Occupational (17%)
Occupational expenses totaled $11,975.79 (17.12%). These are the unavoidable costs of earning an income. Nearly a fifth of everything I spent was simply the price of staying professionally viable. This category includes income protection, indemnity insurance, and professional registrations. Importantly, these expenses disappear in retirement. As a result, I can exclude them entirely when calculating my FIRE number.
Mini-Retirements as a FIRE Strategy
I don’t see retirement as a single finish line. Instead, I see it as a skill set. In 2025, we took a four-month mini-retirement, and it showed up clearly in the numbers. Travel became the dominant discretionary category. I don’t see this as a budgeting failure. I view it as a deliberate stress test of the life we’re building toward.
Mini-retirements do three important things:
- They de-risk retirement: You don’t want your first long break to be permanent.
- They sharpen your FIRE number: You learn what expenses rise, what disappears, and what truly matters.
- They make the journey sustainable: A long path feels shorter when you step off it occasionally.
Ultimately, financial independence isn’t just about reaching a number. It’s about building confidence that the life on the other side actually fits. Mini-retirements help answer that question. I don’t see them as indulgent. I see them as practice reps for a time-rich life. And like any skill worth having, it makes sense to start training before you need it.