No-Spend Challenge - Ideas to Consider
More and more people are finding themselves at the end of their paycheck faster and faster each year, especially during the holidays and thereafter. For many people, buying the essentials like groceries and food is becoming challenging. So many people are trying to figure out how to adjust to this new economy.
Maybe you have had to drain your savings just to get to the end of the month, or you are reaching for that emergency credit card. You have already canceled some of your nonessential monthly expenses like streaming platforms and food prep services, but you are running out of things to cut out.
So, what else can we do to navigate through these types of challenging seasons? Here is one suggestion that many people just like you are jumping on board with this year. It’s called a “No-Spend” challenge.
What is a No-Spend Challenge?
It’s basically what you think it is. Take a period of time where you spend money only on the essentials and ditch the things that are non-essential. This can be up to a month, it can be a week (my favorite), or even just for one day! And, by essential this truly just means food, utilities, mortgage/rent, and transportation. Anything outside of that is off-limits during that specified period of time.
What are the benefits?
A No-Spend challenge is a lot like a full restart on your computer. It helps reset your brain and clear the clutter in terms of your finances and spending. It gives you a chance to take a close, hard look at your monthly expenses, and learn what you really can and can’t live without. If at the end of the challenge, you find yourself not missing something at all, don’t add it back in after the challenge is over.
You will be surprised how much of your spending is driven by emotion. Taking a break from emotional spending will also help you take a step back and really learn what you need versus what you want.
So, let’s look at some guidelines that can help you make the most of your No-Spend Challenge.
Make a Plan
Lack of planning is probably the biggest reason why some don’t succeed when doing a no-spend challenge. So, sit down with your spouse, house mates, or family and put a plan on paper that you can stick on the fridge, the bathroom mirror or by the back door.
This plan should include:
Expense Budget - This will have your rent or mortgage, any regular bills or debts that need to be paid, a set food budget, and a gas budget.
Meal Plan - Don’t get caught on the way home from work wondering what you are going to do for dinner and decide to pick up take-out. Have a solid, yet flexible plan for your meals. There are thousands of meal-planning videos on YouTube and thousands more blogs out there. Find one that works for you. I even have some on my YouTube channel HERE.
Reminders of what is and what isn’t allowed - It is easy to go back to the routine we are used to. Remind yourself every morning before starting your day what your plan is and what your goals are. “I’m making my coffee at home this month, instead of heading to that coffee shop so that I can save money for the new car…”
No-Spend Printable - There are great printable No-Spend Calendars available out there that you can hang on your wall as a visual reminder and count down. You will feel great at the end of the day when you check off another day of no spending!
Avoid Money Pits
You know what yours is. Is it Dunkin Donuts, Amazon, Hobby Lobby, Target, Temu or even Craigslist? Don’t go to those stores or websites! Just stay far, far away. Remove your debit card number from Amazon if you have to, or have your spouse change your password. I find that removing the apps from my cell phone helps tremendously. It may sound extreme, but we are so good at justifying expenses. Which brings up the next tip…
Make a Wish List
Like I said, we can rationalize just about any purchase. We can be very convincing to ourselves! So to help combat this, when you find something you think you can’t live without this month, write it on a “Wish List”. I usually do this normally with Amazon now and only allow myself to purchase from my cart once a month.
Don’t Cheat during or Binge After
Don’t have cheat days. This challenge is Just for one day or week or month. You can do it! You really can.
Don’t binge after! Yes, you will be tempted. But, try to carry over as many of the new habits and tools you have learned into your daily routine. Of course it is okay to have a reward at the end of the challenge. Decide at the beginning on one goal or reward that will encourage you and your family to stay diligent and write it on your Calendar. Just keep it realistic. Like, a dinner and a movie out. Not a new big screen TV.
Find Free Entertainment
Are you someone who thinks that all entertainment costs money? That just isn’t the case. To start with, there are lots of free streaming services out there to watch TV and movies. You just may need to watch a few commercials.
Check out your local community activities. This time of year, there are tons of things going on for adults and kids that may be completely free and festive! Check out your city or area social media to see what is going on in your community. Or, plan fun activities at home!
Instead of meeting your friends for drinks on Friday, schedule a game night at your house and everyone brings something. You provide the location, games and a couple snacks, they bring a drink and an appetizer. No gas money spent, no $75 dinner bill. Inviting your friends over will help you not feel left out on the fun for the month and also is related to my next tip:
Tell Your Friends and Family
This is bigger than you might realize. If you share your journey with your friends and family they can help support the process by reducing temptations. They may even be inspired to join you and do a No-Spend challenge themselves. It never fails that just when you make a commitment to stay home and not spend money, your buddies that you haven’t seen in months decide they all want to go to a hockey game, or movie, or a weekend ski trip. It is so tempting when this happens to justify the expense. But, if they know ahead of time that you have locked the bank account, they may be willing to come up with alternate plans. So, post your journey on social media so everyone knows that you are taking back control of your finances.
So, whether you are just trying to make ends meet or saving for a specific goal, use this month as an opportunity to take control of your finances and life by being purposeful and conscious of your spending. Brainstorm some of your own no-spend alternatives and share them in the comments!
