Posted by Although we still have two months left in 2025, I decided to compare my monthly credit card bill to last year’s. In 2024, I had three months where I had over $500 on my cc bill. One of those months was when I had to buy a new refrigerator. Since that bill was $1900, it makes the average look bigger than it should. By removing that expense, the average cc bill in 2024 was $420. So far in 2025 (without any large expenses), my average cc bill is $570. That means that I’m spending $150 more each month than I did in 2024. That is a 36% increase from the previous year. The two months in 2024 that exceeded $500 where in Oct. and Nov. I put numbers in a graph and there is a steady rise in the data points over the past 22 months.
So far in 2025, I have exceeded $500 three times. But I have also exceeded $600 three times. In 2024, other than the appliance charge, I never exceed $600. The main reason for the increase is insurance and food. I would estimate that we are now spending over $300 per month on food for two people. Both car and home insurance has increased by 20% in 2025. My investments generate about $980 each month. I now need an average of $570 to pay the cc bill and I also take out $400 to pay utilities. So, I’m now using all of my dividends for my monthly expenses. It looks like my cc budget needs to increase to $600 per month going forward.
My biggest fear is that my health insurance situation will change. Trump is changing the laws about how much financial assistance the government will provide. This will cause my cc budget to increase even more in 2026. If I have to use invested money to pay for health insurance, it will decrease the number of dividends I receive each month. This means that even more investments will need to be sold to cover monthly expenses. It will be like a snake eating its tail. I always had a feeling that all the money I saved over the years would eventually go to healthcare. I just didn’t think it would start this soon. There are a lot of people with no savings who will be forced to go without health insurance. Meanwhile, the rich get richer and the poor die quicker.