Are you looking for a unique and rewarding money saving challenge? In this article, we’ll explore the concept of a “No spend month” money saving challenge.
Outlining why you should give it a try and how to successfully complete the challenge.
What is a No Spend Month
A “No spend month” is exactly as it sounds.
It’s a money savings challenge where you commit to not spending money on nonessential things.
So all in all, you’re only spending money on “essentials” Such as:
- Tithe
- Rent
- Transportation (Car insurance, gas, Lyft, etc.)
- Groceries
Examples of Things to avoid on your no spend month
- Going out to eat
- Buying coffee at a Cafe
- Spending money on entertainment activities
- New clothes and makeup
- Home decor
Related: How to Manage Your Money in Your 20s
Benefits of a No Spend Month
In today’s convenience based society, it’s so easy to make small purchases throughout the day without much thought.
From daily coffee runs to impulse Amazon purchases, we often find ourselves reaching for our wallets more often than we realize.
This is where the “No spend month” challenge comes in.
In encouraging us to pause and examine our spending habits for a month.
This interesting savings challenge has so many great benefits, such as:
1. Acting as a great financial detox, in increasing awareness of our spending habits and the places that we spend money.
2. Since you’re not spending money on “unnecessary” things, you’re able to tremendously lower your expenses for the month.
3. With the money that you’ve saved, you’re able to allocate those savings towards your financial goals.
How to do a No Spend Month
Successfully completing a “No spend month” savings challenge, requires only a few things.
One, the commitment to stick to the challenge; and two, some general planning.
Here are a few ways to help you plan and kickstart your no spend month.
Set Clear Goals
Define your goals and the outcomes that you’re looking forward to for the month.
Are you looking to:
- Increase your savings
- Pay off debt
- Invest
- Increase your financial giving/donations
- Save to buy a new item or service (Ex: a new dresser or a weekend vacation)
- Or/and just want better control over your spending habits
Having clear goals will keep you motivated, especially when it becomes tempting to spend money outside of your necessities.
Define Your Necessities
When preparing for the challenge, make a list of your essential expenses and what you’ll allow yourself to spend on during the month.
This way, when temptation strikes, and you’re tempted to buy something not on your list of essentials, you won’t rely on emotions to justify the purchase.
Lastly, it’s crucial to note that there might be unexpected emergency situations during the challenge where you have to spend money, like a visit to the mechanic for a flat tire.
Meal Plan
One area where we tend to spend a significant amount of money is on our food expenses.
While food is a necessary expense, dining out doesn’t have to be a requirement.
When you compare the significant cost difference, between eating out and preparing meals at home, cooking at home is often a lower cost option.
So, To address your food needs and prevent impulsive and unnecessary food purchases, think about meal planning and cooking as part of this challenge.
If your response is that you lack cooking skills or time, there are so many online resources that can help you prepare easy, delicious and quick meals.
Find Free Entertainment
Since you won’t be spending on non-essentials during this challenge, take the opportunity and find free entertainment options.
Attend free community events, explore nearby parks, watch movies at home, or have a game night with friends.
There are plenty of activities that you can enjoy without having to spend money.
Remain Accountable
Share your “No Spend Month” journey with loved ones, who can support you and help you stay on track.
Additionally, by sharing your challenge with others, you’ll make them aware of your goals.
Reducing the chances of unintentional temptations or invitations to spend money on outings.
Stay Away From Temptations
Lastly, during your “No spend month Challenge,” avoid temptation and constantly think about your initial goals to keep you disciplined. (Think of short term discomfort for long term gain)
Reducing temptation can involve:
1. Unsubscribing from marketing emails
2. Steering clear of online shopping websites
3. Leaving your debit card at home and only carrying emergency cash
The end of the No Spend Month
Finally, at the end of the “No-Spend Month” challenge, resist the urge to splurge.
Avoid going on a spending spree to make up for what you didn’t spend during the challenge.
Instead, take time to evaluate what you’ve learned during the challenge and consider what habits you can incorporate into your daily routine.
For example, you might discover that you don’t need a daily coffee run but can treat yourself to coffee once a week.
Or you may find that you enjoy cooking at home and want to make home-cooked meals a regular part of your routine.
In essence, this challenge is all about refining our habits.
Most importantly, celebrate the end of the challenge and use the savings you’ve accumulated to work towards your financial goals.
