Looking to rein in the spending after a season of excess? Try a “No Spend Challenge.”
Following the holidays, there is a growing trend that helps reset your financial habits, starting the new year off with more awareness and less consumption.
The “No Spend Challenge” is a concept that’s simple enough – take a month off from spending money on unnecessary and/or nonessential purchases. Example: Use the coffee in your kitchen instead of stopping by your local coffeeshop… rinse and repeat every day in the month of your choosing.
This isn’t a one-size-fits-all challenge. Make your own rules, do your best to stick to them, but know that life will show up. Sometimes, the moment one commits - the pipes burst, the tooth cracks, or the car hits a pothole. These surprises, unfortunately, need immediate attention. But other than the unexpected curveballs, your challenge month is an opportunity to get back on budget and reflect on any impulsive spending.
Rules can look like this:
- Grocery shop but don’t eat out.
- Tip: Shop your pantry and freezer. Clear them out!
- Tip #2: Meal plan. If you’ve audited that freezer, you already know there’s a frozen pizza in there, so there’s no need to order carry-out after a long day at the office.
- No wants, only needs.
- What’s the difference? Do you have a growing child who jumped two shoe sizes overnight? Their shoes would be a “need.” Is the pair of shoes you’ve been eyeing for a while finally on sale? That’s a want.
- No impulse purchases.
- Tip: Set yourself up for success by deleting shopping apps and unsubscribing from shopping emails. Out of sight, out of mind.
- Tip: Unfollow or mute influencers, brands, and even friends whose social media posts tempt you into buying things you may not need.
- No new entertainment (no new books, no movies or concerts, no toys or games).
- Tip: Remember all the free resources you have at your disposal: libraries, hiking trails, and new hobbies. Chances are your streaming services will offer plenty to watch. But if you must have physical items: books, CDs, DVDs, and vinyl – libraries offer these in spades.
- Tip: Audit your home. You may re-discover all the supplies you purchased ages ago, when you first had the notion of learning how to knit. Now with all your free time you’ve accrued because you’re no longer scrolling influencer pages, you are finally ready to knit.
- Tip: Audit your closet. Maybe you’ll discover early on in the challenge that scrolling/shopping really is a pastime that you miss. Try shopping your closet. Chances are, there are items you’ve forgotten. What’s old is new again.
Lastly, keep a list. Either in your Notes app, or in a notebook, keep track of all that you want… but do not purchase. Sometimes just writing it down relieves the itch to purchase. You’ll be amazed at how many of these items will be forgotten. The few that keep returning to your mind throughout the month? Maybe they are worth the purchase in the future.
Maybe your challenge keeps going. With a month under your belt, you may continue the practice, continue the list, and continue pausing on spending. Your No Spend Challenge can create new, positive spending habits that you want to hold on to. With your new outlook on spending, you can redirect your money, and your time, to what matters most.