In 2017 we jumped off a cliff. We left our jobs and, having no income, lived off our savings, hoping they would last nine years. Gradually, since 2020, various pensions have begun to pay out and we have started to relax, as it became clear the experiment was going to be succesful. In 2025, for the first time our income was more than our spending, an event we haven’t seen since our nine-to-five days of 2016. And this exciting event happened before I became eligible for my state pension which came in at the end of 2025. Apart from my occasional travel writing earnings, our income is now predictable.
Although our income might be considered low by many standards, after having nothing it seems like a fortune and I no longer consider our spending frugal. Those living on the state pension alone are the pensioners who are the real shoestring retirees.
My review of our spending for 2025 will just give some highlights. We are still a couple living in the northwest of England and our spending is very much individual and flawed.
Here is how our budget breaks down:
Essentials – total £9,599 [29% of total spending]
Food – £4,675 [2024 £4,970] – We seem to have bucked the national trend and spent less on our supermarket shop in 2025. Maybe this is my canny use of the savings available in the Lidl App?
Utilities, insurance & phones for a 2-bed 57.2 sq mtrs [615.7 sq feet] bungalow – £4,156 [2024 £4,131] – Not much change here either!
Our health – £768 [2024 £736] – Specs and dentists and some over-the-couter meds soon add up.
The money we spend on the essentials above are, in theory, the minimum we need to survive.
Experiences
Holidays [still our favourite spending line] – £8,783, [2024 £7,358] – We pushed the boat out and had a cycling trip to southern Poland in 2025, taking trains across Europe. We have also been away in our campervan in the UK and stayed in hotels occasionally.
Restaurants & cafes – £3,661, [2024 £3,554] – Not a lot of change, we still like watching the world go by over a coffee.
Running the campervan [servicing & insurance etc] – £2,634 [2024 £1,975] – A campervan continues to be a luxury but one we love and we don’t have a car. This total does include £1,400 for a new lithium leisure battery for our campervan and a new van battery.
Diesel for the above ‘van – £888 [2024 £1,076 ] – We have travelled fewer miles and diesel has reduced in price.
Tickets for concerts, football & attractions – £1,029 [2024 £1,081] – This includes films, rock concerts and U3A classes.
Public transport costs – £1,190 [2024 £1,017] – Cycling and walking are our first choice for getting around, with the bus and train next. We now both have a bus pass and, even with the capped bus fares, these will save us around £500 a year.
Other Spending
Along with the above we spent money on maintaining our house, clothes and gifts and charities.
TOTAL SPENDING FOR 2025 – £33,024 [2024 – £33,840]
I am pleased that our spending in 2025 was similar to 2024 and below our £35,500 budget, even with the splash-out holiday to Poland.
This total doesn’t include the cost of installing a heat pump this summer, an amazing bit of kit that is keeping us warm all day and is using about a third of the energy of our gas boiler. The whole heat pump story might be a separate blog post!
Let me know in the comments below how your budget matched your spending in 2024 and your hopes for 2025.
Back on the road again 
You’ve both done so well to have made the experiment a huge success and coming out the other side. It’s great that you’ve still been doing plenty of things that you enjoy and making memories too. It must all feel so easy now! I don’t document our spends to that level at the moment, but I do know we spend a lot (far too much really…) on food and if we needed to, that would be our number one area to cut back on.
Thank you for sharing, and happy new year 😊
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Thank you. I found keeping an eye on our spending was the first step in getting a grip on where our money was going. Yes, it feels easy now and we are relaxed about our life. I remain determined to not buy stuff, as you can’t take it with you and concentrate on those experiences.
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Like you, we are financially independent and frugal. Our pensions haven’t kicked in yet, but we have income from rental properties. We have a similar budget and track our spending. The dogs have cost us a lot this year – they all had their teeth cleaned and Rosie and Ruby needed minor operations to have skin tags removed. My teeth have also been expensive – two broken crowns and a root canal. Fortunately all this medical mayhem happened in France where it cost half the price! The dogs cost £5K and my teeth around £2K. Ouch! Plus, we lost £250 by cancelling our ferry to Morocco on 7th January because the tooth saga is still ongoing…
Nevertheless, I feel we have riches beyond belief from the experiences we have with this lifestyle, and I wouldn’t trade it. The only thing I miss is a bath…
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Thanks Jackie. Those pensions are a game changer to how secure I feel. Sympathy with your vet and dentist bills. Having animals is a luxury and I wonder if vet bills and dental costs will eventually bring the country down! We have hung on to our Salford NHS dentist, as it is much cheaper than private even with the £30 train fare to get to an appointment. We are on a list for a local dentist but the wait is long! It is good to appreciate how lucky you are to be doing what you do and I hope you get to Morocco soon.
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Vet bills have rocketed in the UK because big conglomerates are buying up small practices and then imposing targets on staff, which means they try to foist unneccessary procedures on pet owners for profit. I was so impressed with the French vet who had us sign a consent form for a 500 euro CAT scan for Ruby, but after the procedure, told us she hadn’t needed the scan so we didn’t have to pay the 500. I am sceptical about whether that refund would have been made in the UK…
At least the medical care costs a fraction of what it would in the UK.
Definitely hang on to that NHS dentist. Our UK dentist costs £50 the second you walk in the door!
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I’ve heard how vets have changed recently. It is about 15 years since we had moggies and things were different then. Now big business has found a new way to make money. Isn’t capitalism marvellous!
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