Navigating a “No-Spend Month”
Whether you’re budgeting for the holiday season, or just want to learn more about your financial habits, a “no-spend” month might be exactly what you need.
A “no-spend month” is exactly what it sounds like. For one month, you will try to avoid spending money on unnecessary costs. No, you can’t stop paying your bills. But you will need to evaluate your monthly costs to separate necessary spending from your wants and nice-to-haves. The only costs you should have during this challenge are your usual monthly bills (utilities, shelter, transportation) and groceries.
Challenging yourself to a no-spend month is a great way to exercise your impulse control and can also help you create or refine your household budget. At the end of the challenge, you’ll probably have more savings and hopefully, you’ll have a better understanding of your spending habits.
Preparing for the challenge and budgeting necessities
Make your no-spend month more attainable by setting yourself up for success ahead of time. Here’s how to get started:
- Find your “why”
To better hold yourself accountable for your spending this month, take a moment to really think about why you wanted to do this challenge in the first place. Write it down and keep a journal throughout the month not only tracking your savings/expenses, but also about how you feel throughout the month. Then, when you’re feeling the urge to splurge, you can look back at your journal and remind yourself to push through.
- Prepare your phone
Online shopping is one of the easiest ways to give in to emotional spending. Try removing any shopping apps from your phone, or if you don’t want to remove them, remove stored debit and credit card information from those retail apps as well as websites. This will make you think a little further before purchasing, as you’ll have to put in the effort to add your payment information back in. Consider unsubscribing from retail brands’ emails to avoid temptation as well.
Another tip is to limit your social media usage during the month. Not only can taking a break from social media great for your mental health, but it might even help your bank account.
Social media is full of brands selling products and targeting you with ads.
- Create a meal plan
It’s easy to overspend at the grocery store, but there are ways to enjoy healthy and delicious food on a budget. The simplest way to stay in budget at the grocery store is to avoid shopping when you are hungry, which can lead to unnecessary purchases. Also try creating a weekly or bi-weekly meal plan with a certain budget in mind, and only purchase the ingredients for the meals you planned. During no-spend month you won’t be able to eat out at all, so make sure your list has enough food so you’ll be able to do things like packing lunch for work and making your own coffee at home (This can also be a time for you to show off your cooking skills to your coworkers and friends!)
- Subscriptions
Your monthly Netflix subscription may seem like a small expense, but when paired with other subscription costs, it can really begin to take a toll on your finances. Create a list of all monthly subscriptions you’re signed up for and notice if there are any that you find yourself not using as much as you’d think. Pause or cancel any you don’t use that often.
- Get a friend or significant other involved
Telling friends or partners about your challenge can help you with accountability if you’re afraid of giving up early. They may even decide to join you! This way, if you start to think about making an unnecessary purchase, you’ll have people to remind you why you started this journey and encourage you to keep going.
Emotional Spending Tips
Emotional spending refers to the spending of money during periods of heightened emotions such as stress, sadness or excitement. You’ll start to recognize emotional spending if you find yourself buying items you later realize you didn’t need or want. This can vary from being out with your friends and offering a round of drinks on your card, or online window shopping and suddenly finding yourself clicking “checkout” before you know it. Here are some tips on how to control your spending this month:
- Shop your closet
Have a closet clean-out day, you’ll discover you have a lot more clothes than you think! Try putting together some new outfits you haven’t tried before to satisfy the shopping urge.
- Don’t get upset if you mess up
If you do give in to spending, don’t give up! We all make mistakes. It doesn’t mean all your hard work leading up to the spending has to go to waste. Instead, turn it into a learning opportunity. Make a note of your purchase and reflect on what led you to spending that money in your no-spend journal so you can avoid them in the future. Then, keep pushing forward with the challenge.
- Don’t solve problems with products
With rush delivery services like Amazon Prime, it’s become too easy to try to throw money at your problems in hopes of a quick solution. Instead of ordering something as soon as you notice you need it, try looking up alternatives you can make/have at home.
Conclusion
Embarking on a no-spend month is not meant to cause stress or force yourself to live like a hermit—quite the opposite. Learning to avoid unnecessary costs can help you become more financially responsible and develop a healthier relationship with money so that your spending better aligns with your goals. And remember, you can continue using the habits you established during the challenge, even after your no-spend month is over. Your budget will thank you.