Anyone else feel like they just bleed money sometimes? Even if you have a budget and stick to it, Decembers, specifically, still pack a punch to the old bank account. That’s why my favorite tradition after the madness of December is over is to have a No Spend Challenge in January, but No Spend Challenges (or a No Spend January) are effective no matter when you do them.
PS – Scroll to the bottom for a free printable tracker. Screenshot it if paper isn’t your jam.
Table Of Contents
- What's a No Spend Challenge?
- Why a No Spend Challenge?
- How Long should a No Spend Challenge Be?
- The No Spend Rules
- Specific Rules for My No Spend January
- No Spend Challenge FAQs
- Can I buy food?
- Can you use gift cards during a No Spend Challenge?
- What happens if I make a purchase I shouldn't?
- Can I buy gifts for others during the No Spend Challenge?
- Join the No Spend Challenge movement
What’s a No Spend Challenge?
What’s a No Spend Challenge? It’s exactly what it sounds like. You try as best you can to not spend money unnecessarily. You choose the length of time and the categories you’re going to spend vs. not spend (like spending on groceries but not on dining out).
This post will walk you through setting a time frame, rules for yourself, tips for success and a spending tracker to keep you motivated.
Why a No Spend Challenge?
There are a lot of reasons to have a No Spend January (or any month)…
- Resets spending habits—especially after spending like crazy at Christmas time.
- Stops instant gratification — makes you wait to see if you truly need something before buying it, which is a great habit!
- It halts the influx of clutter and allows you to make solid progress in decluttering. It also allows you to keep your home cleaner.
- Keeps some extra cash in your pocket.
- Encourages you use up what you have–like all that food in the pantry that you never feel like eating
- It’s good for the environment. All those items we buy WILL eventually end in a landfill, not to mention the carbon footprint delivery/shopping makes.
How Long should a No Spend Challenge Be?
Personally, I think a month is a perfect amount of time for a No Spend Challenge. A month is long enough that you can actually see your work pay off (lower credit card bills, more money in the bank) and it’s short enough that it’s not overwhelming.
If a month feels too long, shorten it! Try a No Spend Week, a No Spend Weekend, or a specific no spend category, such as clothing, alcohol, or dining out. Choose a category that is a weak spot for you and see how you do.
If you’re really serious about your challenge, you can extend it to two months, 6 months, or a year. Again, you could choose a specific category to focus on, like no new clothing for a year.
I have a friend, Mary Ann, who did a “Buy Nothing New for 2022”. She attempted to only purchased consumables and second-hand items. Read all about how she did here. Spoiler alert – she liked it so much she did it again for 2023.
The No Spend Rules
There’s one simple rule: BUY ONLY WHAT YOU TRULY NEED
It would be VERY hard, if not impossible, not spending ANY money at all. We all have electricity bills, after all. But there’s a difference between necessary spending and unnecessary spending, and that’s what we’ll be reminding ourselves of.
The No Spend Challenge rules aren’t set in stone. Consider your areas of weakness and create rules that will help you battle your spending demons. Want some examples? Read on…
Specific Rules for My No Spend January
- No Coffee Shops / Dunkin / Starbucks
- Make coffee at home and skip the donuts. Good for your body and your wallet.
- No AMAZON.
- Even for the necessities — skip it, add it to your list and shop at the supermarket. Don’t open that Amazon door. And turn off notifications on your phone, too. Amazon is so easy that shopping on it actually becomes a habit. I use the No Spend Month to detox from it.
- No clothes.
- I’m betting there will not be a clothing emergency this month.
- No impulse purchases.
- Create a list of items you need and stick with it. Avoid aimlessly wandering around Target, grabbing a magazine in the checkout aisle of the supermarket, or running into The Dollar Tree.
- No toys, books, or entertainment purchases.
- Odds are the streaming service you already pay for has plenty of movies, and your local library is full of books, should you need some fresh reading material.
- Only dine out if you’ve planned it into your meal plan and budget.
- Be reasonable and not impulsive. No McDonald’s drive through just because it’s on the way home and you’re tired. We budget $150 per month for dining out, which we will continue to use in January.
- No manicures or salon
- I know this is a sensitive subject for some. Personally, these are once in a while items in my life, so I can go without them for a month.
Again, these are MY rules I’ve set. If they feel too restrictive, change them!
No Spend Tip: Make a wish list of items you’d like during your No Spend Challenge. If you still want those items when the challenge is over, purchase them knowing you did so with intention.
No Spend Challenge FAQs
Even though I always explain that participants can create their own rules, I often get followers that seek clarification for MY RULES. It can help some people to have strict rules that someone else has set — you do what’s best for you!
Related Post: Tips for Sticking to a No Spend Challenge
Can I buy food?
Yes! Don’t starve on account of a challenge, BUT this is a fantastic opportunity to see just how much you can eat from your pantry and freezer! I’m sure you’d be surprised at how long you can make it.
Can you use gift cards during a No Spend Challenge?
For me, this one is 50/50. If using a gift card leads to you breaking the challenge, avoid it. If your frame of mind is better when you avoid ALL shopping, put those gift cards away. On the other hand, I’m betting you have a TON of gift cards just sitting around your house. If this is the push you need to actually use them, then do it!
What happens if I make a purchase I shouldn’t?
Put a red mark on the chart (linked below) and try again tomorrow! Don’t let one slip up ruin your whole no spend month!
Can I buy gifts for others during the No Spend Challenge?
If you or your child get invited to a party and you feel you need to purchase a gift, do it! If you your goal is to have less stuff in your life, consider throwing your child a “No Gifts, Please” Birthday Party.
Join the No Spend Challenge movement
Interested in trying a No Spend Challenge of your own? Screenshot, download, or print this free spending tracker and keep it handy. Color each bubble green when you’ve avoided spending unnecessarily. Leave it blank or color it red when you slip up.
LWLM No Spend Challenge PrintableDownload
If this is your first time participating in a No Spend Challenge, go easy on yourself. Take a deep breath, read these tips, and do your best. The goal is to change your spending habits and changing habits takes times. If you’re not 100% successful on your first try, it doesn’t mean you didn’t grow.
UPDATE: Want to see how my No Spend Challenge Went for January 2021? This post provides a summary.
Are you taking part in a No Spend Challenge? Leave a comment below and let me know!
Insights, advice, suggestions, feedback and comments from experts
As an expert and enthusiast, I have personal experiences or beliefs, but I can provide you with information on the concepts mentioned in this article.
No Spend Challenge
A No Spend Challenge is a personal finance strategy where individuals commit to not spending money on non-essential items for a specific period of time. The challenge aims to reset spending habits, encourage mindful consumption, and save money. It involves setting rules for oneself, such as avoiding unnecessary purchases and focusing on needs rather than wants.
Benefits of a No Spend Challenge
- Reset spending habits: After periods of increased spending, such as during the holiday season, a No Spend Challenge helps individuals regain control over their finances and develop healthier spending habits.
- Stops instant gratification: By delaying purchases and considering whether they are truly necessary, participants learn to distinguish between wants and needs, fostering a habit of thoughtful spending.
- Reduces clutter: By avoiding unnecessary purchases, the challenge prevents the accumulation of clutter in the home, leading to a cleaner and more organized living space.
- Saves money: By cutting back on discretionary spending, individuals can save money and build their savings or pay off debts.
- Encourages resourcefulness: Participants are motivated to use up what they already have, such as food in the pantry, rather than constantly buying new items.
- Environmental benefits: By reducing consumption, a No Spend Challenge can help reduce waste and the carbon footprint associated with the production and transportation of goods.
Duration of a No Spend Challenge
The duration of a No Spend Challenge can vary depending on personal goals and preferences. Many people opt for a month-long challenge, such as a No Spend January, as it provides a meaningful timeframe to see the impact on their finances and habits. However, shorter challenges like a week or a weekend can also be effective. Some individuals may choose to extend the challenge beyond a month or focus on specific categories, such as clothing or dining out, for a longer period.
Setting Rules for a No Spend Challenge
While the general rule of a No Spend Challenge is to only buy what is truly needed, participants can customize the rules based on their weaknesses and goals. Here are some examples of specific rules that can be implemented:
- Avoiding coffee shops and fast-food chains: Making coffee at home and skipping unnecessary purchases at coffee shops or fast-food chains.
- Limiting online shopping: Avoiding online retail platforms like Amazon, except for essential items that cannot be purchased elsewhere.
- No clothing purchases: Refraining from buying new clothes during the challenge.
- Avoiding impulse purchases: Creating a list of necessary items and sticking to it, avoiding unplanned shopping trips or unnecessary purchases.
- Limiting dining out: Only dining out if it is planned in advance and fits within the budget and meal plan.
- No non-essential services: Pausing non-essential services like manicures or salon visits for the duration of the challenge.
Additional Considerations
- Using gift cards: The use of gift cards during a No Spend Challenge can vary. Some may choose to avoid using them to maintain a stricter challenge, while others may use them as a way to reduce expenses. It depends on individual preferences and goals.
- Recovering from slip-ups: If a participant makes an unplanned purchase during the challenge, they can mark it on a tracker and continue with the challenge. The focus should be on progress and not letting one slip-up derail the entire effort.
- Buying gifts for others: Whether to buy gifts for others during a No Spend Challenge is a personal decision. If it aligns with personal values and is within the budget, it can be considered. Alternatively, participants may choose to avoid gifting or opt for non-material gifts.
Conclusion
A No Spend Challenge is an effective way to reassess spending habits, save money, and reduce clutter. By setting personal rules and focusing on needs rather than wants, individuals can cultivate mindful consumption and financial discipline. The challenge can be customized in terms of duration and specific rules to suit individual circ*mstances and goals.
