10 Simple Rules for a No Spend Challenge - Debt Free Forties (2024)

Thanks to Tik Tok, plenty of folks have been turned on to trying a no spend challenge. I love it when social media helps people cut unnecessary spending and find new ways to save.

If you’re not familiar with a no spend challenge, the key takeaway is to spend less money by cutting out unnecessary purchases. Yes, you’re already doing that with a budget, but during a no spend challenge you’re amping it up and cutting even more for a short period of time.

What is a No Spend Challenge?

A no spend challenge (or spending freeze) is choosing a set amount of time, say a weekend, week or even a month, to not spend any unnecessary money. Some people choose to have allowances, like groceries and gas.

The purpose of the no spend challenge is to help you reset after a holiday, vacation, or to get back on track from an emergency or stop impulse spending. It can also be one of the best ways to kickstart your savings or debt repayment on things like student loans with the chunk of money you save from the challenge.

Before we get into the nitty gritty of the no spend challenge rules, download this free no spend challenge printable, calendar, and step-by-step directions to help you personalize the rules and goals for your challenge. Just enter your info to get the no spend challenge PDF:

Now that you’ve grabbed your free worksheets, read through the rules below, grab a pen, and get to planning your own personal no spend challenge!

Why do a No Spend Challenge?

Most of the time, no spend challenges are used as a way to stop non-essential spending for the average person. However, there can be other great reasons why you might want to start one:

Stop spending after the holidays or a vacation
Break an online shopping habit
Help you save up for something, such as a new car or something fun
Teach kids the difference between wants and needs, especially when all family members participate
Stop discretionary spending due to emotional struggles, and conciously refocus your energy elsewhere
Build up an emergency fund quickly
Stop acquiring credit card debt and pay it off
Start new habits that help your overall financial health

The reason why you should do a no spend challenge are personal, but there’s plenty of good reasons to try one. It can also be fun to do with the family or a friend if you’re worried you won’t make it through the time period.

How Long Should a No Spend Challenge be?

Choose your preferred set period of time for the challenge:

No Spend Weekend Challenge: This focuses on finding new ways to do free activities with family or friends. It’s perfect for anyone who finds themselves spending too much on activities on the weekend, especially with kids.
No Spend Week Challenge: This challenge entails making changes to your daily habits – whether it’s getting a coffee from Starbucks or grabbing lunch with coworkers.
No Spend Month Challenge: The the 30 days no spend challenge can be a doozy, but the rewards are greater. This is about starting to make a permanent lifestyle change for good, rather than just for a week. It’s about stopping potentially bad habits like shopping and replacing them long term with other cheaper (or free) activities. Going a whole month is not only impressive (and a long time), but a sign you’re ready for some big changes!
No Spend Year Challenge: This is for the super serious folks who not only want to make a change, but have it beccome a lifestyle. It’s not for the weak of heart, but the payoff can be amazing.

What are the Rules of a No-Spend Challenge?

No spend challenges work by setting rules for spending and then locking away those credit and debit cards. The rules can vary depending upon your needs, but primarily there’s no shopping for wants, just needs.

Some people chose to do a bit of stocking up on groceries, pet supplies and personal needs prior to their challenge.

Allowed spending on the challenge includes items such as:

How to Get Started on Your No Spend Challenge

There are some key steps you need to do in order to ensure that your spending challenge is a success. They’re all about setting rules and making sure everyone is on the same page so there’s no miscommunication and “accidental” (ahem, side eyeing you, donuts and coffee!) spending during the challenge.

Here are the steps to starting your official No Spend Challenge 2023:

1. Figure out why you’re doing it.

A big key to figure out your no spend motivation or savings goal. Is it to accelerate your debt payoff? Save for retirement? Do you want to boost your debt repayment? Are you saving for a vacation?

Figure out your long term goal. If you have that in mind, it makes it easier to focus on not spending when a large mocha is staring you in the face.

Once you’ve figured out your “why”, make sure to keep it at the top of your mind so you have something to focus on, especially if things get tough. Print out a picture of your dream vacation spot, or a debt tracker printable and tape it on the fridge where you’ll see it often.

2. Decide how long you want to do the challenge for.

The point is to challenge yourself and see how far you can stretch! A month can be really difficult, but the longer the challenge, the greater the reward. If you’re worried about how difficult it might be, start off easier with a smaller time frame, like a no spend weekend or week.

3. Set your rules.

Write them down and post them as a reminder. Are there exceptions, such as purchasing fresh groceries like dairy & produce? Are you setting up cash envelopes for groceries and gas? Make a list of what’s an acceptable purchase and what’s not and hang them on the fridge.

4. Review rules with your spouse/family.

Make sure everyone’s on the same page, otherwise it’s useless. It’s important that your spouse and family understand and agree to the goals, so that they’ll be much more likely to play along. Make sure there are no special occasions that might disrupt the no spend challenge, or factor those in as an exception if needed.

5. Use this period to eat the stock of items in the pantry/freezer.

It’s the perfect time to use up all those items that get pushed to the back of the pantry every week. Often, a no spend challenge can be used to rotate out your pantry’s stock and use up items before they expire, rather than hitting the grocery store multiple times a week. It’s the perfect time to get creative with your meals and start some new habits. Get started with some of these easy dirt cheap meals.

6. Research free entertainment for the kids/family.

Since having kids, I’ve found out just how expensive it can be to do anything – from eating out to an event, it can put a big dent in your cash flow. Use Google to find sites with free events in your city, have a family game night, or hit the park.

7. Put away the credit/debit cards to avoid temptation.

Just do it, as the saying goes. Don’t keep them on you. It’s just too easy to whip out a credit card and use it. Consider creating cash envelopes to help monitor and control spending as needed for things like groceries and gas.

8. Need a distraction? Use this time to get stuff done!

If you’re used to cruising sites for the latest deals, this is the perfect time to distract yourself with household activities. Clean out garage and basem*nt, declutter and organize. Donate, throw away, and sell stuff. It’s the perfect time to pick up a side hustle selling your gently used stuff and get it out of your house at the same time!

If you still need some no spend challenge ideas to distract you from spending, try:

9. Still want to buy something?

Write it down on the no spend challenge tracker and keep it. Promise yourself that if you can wait until the end of the spending period, you can purchase it. Chances are, after you’ve made it through your no spend challenge, you won’t want it anymore. It’s a great way to break yourself of those impulse purchases!

Another great idea is to take the extra money you would have spent on that item and move it into savings. By the end of the challenge, you’ll see how much you would have spent on impulse purchases, which can be a real eye opener!

If the item you need is an absolute necessity, try pulling together any gift cards you have laying around, or cashing in credit card points to get what you need. (No, a stop by the coffee shop does not count as an absolute necessity…I guess.)

10. Move your money.

Put it into a separate savings account so that at the end of the month, you can apply it towards your goal. Don’t let it float away into the ether of bank account limbo.

No matter how you chose to do your no spend challenge, what’s important is that you are making an effort to change your spending habits. It can be really hard at first, but it’s a great way to reset your mindset and focus more on long term goals versus instant gratification.

Tips for a Successful No Spend Month

Spending no money for a month is a lofty goal but definitely doable. Doing a no spend month on a regular basis is a great way to relearn how not to spend money needlessly.

To spend no money for a month, you will need to have a budget in place where you’ve planned ahead for that month’s costs.

One of the biggest keys to success is thinking ahead. If you know you’ll be participating in kid’s events or extra curricular activities, plan ahead and pack snacks or food.

If you know you’ll be meeting up with friends, suggest get togethers that aren’t at a restaurant or cost money. If you’re looking for ideas, check out 50 best things to do on a no-spend weekend. If you do have to meet up at a restaurant, check out this list of cheap places to eat to avoid overspending.

If you have a freebie, no spend weekends are the perfect time to cash them in. Keep an eye on your emails from retailers to see what kind of freebies you can cash in on. But make sure you don’t break your no buy challenge by getting sucked into spending money while you’re there!

Just this past week, I was able to grab an entire 12oz bag of coffee from World Market, just for being a rewards member. There’s nothing like the taste of free coffee in the morning!

Lastly, if you’re looking for even more inspiration, check out The No Spend Year: How You Can Spend Less and Live More by Michelle McGagh. In it, she details how she set financial goals for herself to just pay bills with a minimal budget for groceries during a no spend challenge year. The rest she saved while she learned how to socialize and travel for free for an entire year! If you’ve looking for inspiration to try a no spend year, this is it.

Another great book to check out is The Year of Less: How I Stopped Shopping, Gave Away My Belongings, and Discovered Life is Worth More Than Anything You Can Buy in a Store by a fellow personal finance blogger, Cait Flanders. Cait’s journey doesn’t focus on minimalism or decluttering, but instead focuses on a no buy year and consuming less in all aspects of life.

Have you ever done a no spend challenge? How’d it go? What tips would you recommend for next time? Leave your thoughts in the comments below!

Interested in other money savings challenges?

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$1000 Savings Challenges + Free Printable

Ready to start budgeting or want to hear more about ours? Click here to learn how we’ve paid off $26,619 of Debt in 17 Months! Or, if you’re on a tight budget, here are 11 easy ways to save money on a tight budget. If you’re still struggling with spending too much money, check out my post on not spending money you don’t have.

Insights, advice, suggestions, feedback and comments from experts

Introduction

As an expert in personal finance and budgeting, I can provide you with valuable insights and tips on the topic of no spend challenges. I have extensive knowledge and experience in helping individuals cut unnecessary spending and find new ways to save money. Let's dive into the concepts mentioned in this article.

What is a No Spend Challenge?

A no spend challenge, also known as a spending freeze, is a period of time during which you commit to not spending any unnecessary money. The goal is to reduce expenses and save more by cutting out non-essential purchases. It can be as short as a weekend or as long as a year, depending on your personal goals and level of commitment [[1]].

Reasons to Do a No Spend Challenge

There are several reasons why people choose to embark on a no spend challenge. Some common motivations include:

Post-Holiday or Vacation Reset: After indulging in holiday or vacation spending, a no spend challenge can help you get back on track financially.
Breaking Online Shopping Habits: If you find yourself frequently making impulse purchases online, a spending freeze can help you break that habit.
Saving for a Specific Goal: Whether it's a new car, a vacation, or any other financial goal, a no spend challenge can help you save up more quickly.
Teaching Kids about Wants vs. Needs: Participating in a no spend challenge as a family can be a great way to teach children the difference between wants and needs.
Managing Emotional Spending: If you tend to engage in discretionary spending as a way to cope with emotional struggles, a spending freeze can help you refocus your energy and find healthier alternatives.
Building an Emergency Fund: A no spend challenge can provide a significant boost to your emergency fund, helping you establish a financial safety net.
Paying Off Credit Card Debt: By cutting out unnecessary expenses, you can redirect that money towards paying off credit card debt and becoming debt-free.
Developing Better Financial Habits: A spending freeze can serve as a catalyst for developing new habits that promote overall financial health and long-term financial stability [[2]].

Duration of a No Spend Challenge

The duration of a no spend challenge depends on your personal preferences and goals. Here are some common timeframes:

No Spend Weekend Challenge: This challenge focuses on finding free activities to do with family or friends over the weekend, reducing expenses associated with weekend activities.
No Spend Week Challenge: During this challenge, you make changes to your daily habits, such as avoiding buying coffee from Starbucks or eating out with coworkers.
No Spend Month Challenge: The 30-day no spend challenge is more intense and requires a greater commitment. It aims to create lasting lifestyle changes by replacing potentially bad spending habits with cheaper or free activities.
No Spend Year Challenge: This challenge is for individuals who are extremely dedicated to changing their spending habits and making it a long-term lifestyle. It requires a high level of commitment and can lead to significant financial transformation [[3]].

Rules of a No Spend Challenge

The rules of a no spend challenge can vary depending on your specific needs and circ*mstances. However, the primary objective is to avoid spending on wants and focus only on needs. Here are some common guidelines:

Allowed Spending during a No Spend Challenge:

Mortgage/Rent
Utilities
Insurance
Internet/Phone
Groceries (if not stocking up prior)
Gas for your vehicle

Suggested Items to Cut during a No Spend Challenge:

Activities
Eating out, coffee, drinks
Clothes
Shopping
Ubers/Lyft
Hair/Nail Services
Anything else that is not a need

It's important to establish clear rules for yourself and communicate them with your family or spouse to ensure everyone is on the same page. By setting boundaries and sticking to them, you can maximize the benefits of a no spend challenge [[4]].

Tips for a Successful No Spend Month

Spending no money for an entire month can be challenging but achievable with proper planning and mindset. Here are some tips to help you succeed:

Plan Ahead: Anticipate upcoming events or activities and make necessary preparations. Pack snacks or food for kids' events or meetups with friends to avoid unnecessary spending.
Explore Free Entertainment: Research free events in your city or find low-cost alternatives for entertainment. Family game nights, visits to the park, or exploring free local attractions can be enjoyable and budget-friendly.
Avoid Temptation: Put away your credit and debit cards to minimize the temptation to spend. Consider using cash envelopes for groceries and gas to better monitor and control your spending.
Stay Productive: Use the time you would typically spend browsing for deals to tackle household tasks, declutter, or even start a side hustle. This can distract you from spending and help you make progress in other areas of your life.
Track Desired Purchases: If you come across something you want to buy during the challenge, write it down on a tracker and promise yourself that you can purchase it at the end of the spending period. Often, you'll find that the desire to buy it diminishes over time.
Move Saved Money: Transfer the money you would have spent during the challenge into a separate savings account. This way, you can see the tangible results of your efforts and apply it towards your financial goals.

Remember, a no spend challenge is an opportunity to reset your spending habits, focus on long-term goals, and develop a healthier relationship with money. It may be challenging at first, but the rewards can be significant [[5]].

I hope these insights and tips help you understand the concept of a no spend challenge and provide you with the necessary tools to embark on your own personal financial journey. If you have any further questions, feel free to ask!