The Ultimate Guide to Crushing a No-Spend Challenge

What if you could commit to a full month of not buying anything new?  How much of an impact could that have on your bank account, the environment, or even your debt? A no-spend challenge is a great way to see these impacts and hit the reset button on your spending habits. 

We all have those little purchases that add up without us even realizing it. A no-spend month forces you to be mindful about where your money is going. This can be a real eye-opener.

Whatever the reason behind your decision – it can positively impact your financial future and significantly lessen your environmental impact at the same time.

If committing to a full month makes you break out in cold sweats, start small.  Pick one week, or even one weekend, and commit to paying your monthly bills and necessities, and nothing else. 

Because of the commitment, this will take some planning and willpower.  It’s not going to be easy.  Rather than purchasing coffee on your way to work, consider redirecting that money into your savings account and brewing your own coffee at home. Or put that towards an extra payment on your credit card debt. 

It will get easier once you start seeing the overall impact it can have.

7 Steps to Successfully Complete a No-Spend Challenge

• Create a list of rules and stick to them.

Decide on your parameters.  This will vary greatly depending on your goals for the month as well as the needs of your family.  Decide what works for you – the key is to stick to them.

• Write a budget.

Write a budget based on your needs, not wants.  Hopefully you already have a budget and you can edit it to remove anything that isn’t need-based. Remove things like eating out, manicures, movies, etc.

For example, think of it as the budget you would write if you were unemployed. A bare-bones budget.

• Use what you have!

I get great joy in throwing out an empty container.  Whether it’s food or bath products, it means I wasn’t wasteful.  Before deciding to buy something new, go shopping in your house and see what needs to be used first.  

Do you have a pantry full of food that never seems to be eaten?  Try using an app like SuperCook to help find recipes utilizing items you have on hand.

• Commit to a plan. 

When doing a no-spend challenge commit to it.  Keep a wish list of items you want or add items to an online cart. Once the challenge is over, if you still want it, purchase it.  Chances are you may forget!

By eliminating impulse purchases, you ensure you’re only buying things you really want.

If your weakness is eating out, then make a meal plan for the month.  Make sure to have quick meals on hand for nights when preparing a full meal may not be feasible.

Related – 20 Tips for Saving Money at the Grocery Store

Plan for downtime as well.  If your go-to weekend plans involve last-minute spending (like going to see a movie because you’re bored) plan for those impulses. Research free events, camping sites, and hiking trails ahead of time.  Try a picnic in the park or a bike ride in the afternoon.  The possibilities are endless.

• Avoid temptation!

Unsubscribe to emails and delete shopping apps from your phone.  Out of sight out of mind. If you don’t get notifications, you won’t know what you are missing.

• Establish an end reward.

Want to save for a specific purchase?  By having an end goal you’ll stay motivated, but the key is to not needlessly spend the money you have saved once it’s over. 

If your goal is to increase your savings or pay off debt – keep track of your savings throughout the month and make an extra payment at the end so you can see the impact.

Want to make the no-spend challenge a regular thing? Create a separate savings account specific to these savings. Use this for your future Christmas or gift budget, or save for a vacation.

• Track your success.

Print a no-spend tracker and keep it in a visible location.  Successful days are marked in green and unsuccessful days in red. Visibility holds you accountable and helps to motivate.

Benefits of a No-Spend Month

• Boost your savings quickly. 

By seeing the benefits, you may feel motivated to push yourself further.  Think of the ramifications a year-long no-spend challenge could have.

• Help pay down debt faster.

Put the money saved towards an extra payment.  You’ll pay it back a little quicker and save a little on interest in the long run.

• Put extra money towards your 401K.

If you qualify make an extra contribution towards your 401K.  Even if you don’t, you can still see how much less you can realistically live without. Then raise the percentage of the amount you are contributing each pay period and watch your savings grow.

• Help with offsetting a month of excessive spending, like December.

Just about everyone could benefit from a no-spend January.  Try doing a no-spend challenge with similar months and see how you benefit by year-end.  

• Identify your spending weaknesses.

Keep track of the impulse purchases you resist making. By consciously tracking your expenses and questioning every purchase, you’ll gain a clearer understanding of your financial habits.

• Reset your brain regarding needs vs. wants.

Review your spending on both necessities and non-essentials in relation to your long-term goals. If your spending habits don’t align with those goals adjust them.

Common Pitfalls to Avoid During Your No-Spend Challenge

Lack of proper planning and preparation can sideline well-intentioned individuals when attempting a no-spend challenge.  Make sure this doesn’t happen to you by creating a plan upfront and preparing for your weaknesses.

A lack of accountability and support can also doom you from the start. Attempting to go it alone, without the encouragement and accountability of friends, family, or a dedicated community, can make it all too easy to rationalize exceptions and give up.

Embrace the Power of a No-Spend Challenge

Whether you’re trying to save up for something big or just want to get a better grip on your finances, a no-spend month can be a game-changer.

So, if you’re feeling like your spending is getting a little out of control, consider giving a 30-day no-spend month a try. It might just be the reset you need to get your finances back on track.