There is a fine line between balancing a budget and living a little. Once you cover the things you need, extra cash can go to the things you want. Marshal Cohen, the chief retail analyst at Circana, breaks down discretionary spending in 2025.

"The average American consumer, and this is for household income, runs at about $850 on an annual basis for pure discretionary product," said Cohen.

According to Cohen, subscription services are among the newest ways consumers are indulging and enhancing their lifestyles, and the opportunities are expansive.

"We're spending on average about $35 a month on subscription and entertainment programs," said Cohen.

In order to keep those costs in check, Cohen recommends you check the annual statement from your credit card not just your monthly.

"Sometimes [they] come in on a quarterly or annual basis. They don't show up on every moth's bill."

If you are not actively reviewing those expenses, it can be difficult to know which subscriptions you are actually utilizing. It can also be difficult to eliminate these services once you do decide to drop them. There are, however, apps that will not only list your subscriptions but also offer to cancel them for you.

While these packages provide a lot of enjoyment within the home, many are seeking adventure outside it. In 2025 on a four day local vacation for a family of four, Cohen says you can expect to spend around $650.

"That means car or, local travel, accommodations as well as entertainment."

If your trip includes a flight, the retail analyst suggests buying those plane tickets very early or very late to capitalize on the least expensive offerings.

Overall, Cohen predicts spending to be robust in 2025. January, once a month to catch up on holiday debt, is emerging as a month to spend and treat ourselves to anything we wanted but did not get before the new year.