If your spending has gotten out of hand, a “no-spend challenge” is a great way to hit reset on certain financial behaviors. Not only does this type of challenge help you save money, but it allows you to see where exactly your money is going so you can adjust your habits accordingly. Intrigued? Read on to learn more!
What Is a No-Spend Challenge?
A no-spend challenge is when you refrain from spending money on non-essential items. The goal is to limit spending to basic living expenses for a certain amount of time. Because groceries are essential, you will buy them; however, that iced coffee in the middle of a Monday afternoon just because? Not so much. (Sorry to be the bearer of bad news!)
What Can You Buy During Your Challenge?
Think: living expenses and bills such as rent or mortgage, household bills, gas or transportation, groceries, healthcare, and any debt obligations. Any savings goals can be continued during this time as well.
What Should You Avoid Spending Money On?
Avoid spending money on anything not considered a necessity or a savings goal. This includes clothing, home decor, takeout, and online purchases. The exception is if something is beyond repair (for example, your winter coat has a huge rip).
No-Spend Challenge Benefits
While it may not sound fun, a no-spend challenge may be just what’s missing from your life. Here are a few things to look forward to:
- Saving money
- Boosting your savings
- Editing or revamping your budget
- Paying down credit cards or other debts
How to Tackle the No-Spend Challenge
No-spend challenges are straightforward, but make no mistake: It’s important to have a plan before you start. Here are our best recommendations for setting yourself up for a successful no-spend challenge:
- Determine Your Goals: Make sure you find your goal motivating so you can stay focused, even when it’s difficult.
- Set a Timeline: This challenge is entirely self-guided, so the time limit is up to you. Just make sure you evaluate which parts of your budget need restriction and which require leeway.
- Create Your Budget: A budget is not 100% necessary, but having one in mind may help you stay focused.
- Keep Track: This is another way to stay motivated and gain insight into your spending strengths and weaknesses.
- Be Patient With Yourself: Drastically changing any behavior is a challenge in itself. Even if you stray from your budget, don’t chalk this up to a failure; instead, reflect and move forward with your challenge.
No-Spend Challenge Tips
Before we turn you loose on your no-spending journey, here are a few tips to make the whole thing easier:
- Download a no-spend challenge app (like HabitShare) to help keep things in order.
- Take note of what you have on hand, and use these materials, supplies, and ingredients first.
- Remove auto-saved banking information from your phone and computer to avoid overspending.
- Make sure to treat yourself as you go (within reason).
- Find someone to hold you accountable.