How to Do a No Spend/Low Spend Challenge
This post may contain affiliate links which means I may receive a commission for purchases made through links. I will only recommend products that I have personally used, if still available, or a similar item if not. Learn more on my Privacy Policy page.
You may want to try a no spend challenge. You may have overspent a little over the holidays, or you may just have a hard time making ends meet. When you are trying to organize your finances, this can be a great way to reset or help you reach a goal. It may also help you to get to know yourself better to understand why you spend the way you do. When you understand your triggers you can take steps to change your bad habits and realign with your values.
What is a No Spend Challenge?
A no spend challenge is just that. It can be easy, moderate or extreme. Of course you will still pay all your bills and non-negotiable expenses. Do you have gift cards or points from a reward plan? You can use them if you want to or save them for another time.
First decide on your why...Have a goal for the money you are saving...
Without a good reason to do this you will not be able to stick to this challenge.
*It is called a challenge because it isn’t supposed to be “easy”.
Do you want to pay off some debt – how much? Are you looking to replace some furniture or appliances that are on their last legs? Maybe you want to travel somewhere. Are you saving for a big ticket item like a car or house or a renovation? Perhaps you have other non-financial goals that would also benefit. (Eat healthier, declutter and get organized, live more simply, help the environment, etc.) What goal will motivate you?
You decide on your rules...It's Your no spend challenge!
This challenge needs to be catered to you and Your needs. Make firm decisions upfront about what you will or will not allow yourself to do.
- Will you do the easy challenge where you just cut down on one or two categories that are a problem?
- The moderate category where you eliminate spending on one or two categories and set a lower limit on some others.
- Or the extreme type where you don’t spend anything at all beyond your regular bills? – Use only the food you have, walk everywhere you need to go, fix items instead of replacing them, etc.
- Set a time limit. Try it for a weekend or a week to start if you are unsure. Doing it for a month is a popular time-frame. (January is an easy month because you may have received gifts for the holidays and don’t need anything.) Some people like it so much they do it for a year or more.
For the rest of this article I will just refer to a month. Apply whatever tips work for you and your situation.
What categories will be on your "No Buy" or "Low Buy" list?
Here are a few categories you may be able to eliminate for the month (or cut down drastically):
- Clothes
- Toiletries
- Beauty Supplies
- Entertainment
- Books & magazines
- CDs, DVDs or other entertainment media
- Eating out & coffee shops
- Alcohol
- Cigarettes – Wouldn’t you love to quit smoking?
- Binge shopping
- Home goods
- Tools
- Electronics
- Unused Subscriptions
- Toys (for grown ups and for kids)
- Craft supplies or
- Anything else that you have a lot of.
Most people do not need clothes. We already have enough to get us through the month. If there is something you know you will need, can you wait to make the purchase until next month? Can you get it at a thrift store?
You may not need any toiletries or beauty supplies. This would be a great time to use up what you have.
If you tend to spend money on home goods, get specific about what your weakness is. Do you have an over abundance of cushions or candles? (Like I do.)
Eating out and entertainment...
Eating out might be an area you can cut out for the month. Take your lunch to work or school. If you really have to go out for dinner, do you have a gift card you could use?
Entertainment is another area you can cut down on. Have a meeting with your family to come up with alternative, free, cheap fun things to do. Can you go skating at the public rink? Go to a park and picnic? Go for a hike somewhere? Take advantage of public swim pools? Have a family board game night? Do a Mexican theme night for dinner and play games? Make some crafts with the kids with supplies you already own?
If books are your weakness, look at joining the local library, or just enjoy re-reading your favorites this month. Same with DVDs (if you still have those.)
What exemptions, allowances or limits will you have?
Here are some things you probably WILL be spending money on:
- Things you absolutely need.
- Items you use regularly that you run out of.
- Perishable foods.
- Food that supports your healthy eating goals.
- Fixing/Repairing things you already own to extend their life.
- Health needs – vitamins, medications, dental, other appointments.
- Gas or transportation costs.
Food and Transportation...
Food and household supplies tend to be one of our biggest expenditures that we actually have some control over. With the rapid rising cost of food these days it is crucial that we squeeze our budget and eliminate waste as much as possible. For my no spend challenge I decided that the only food I would buy were perishable items and other “super deal” sale items I use all the time. The first time I tried this, my budget for all these items was not to exceed $100 for the month. I actually went over by about $15, but I would have spent a lot more if I hadn’t been so intentional. The second time I tried this, I went way over because the cost of food had gone up so much and I hadn’t figured in the extra mouth I have to feed.
Unless you live in a city where there is a good transit system, you will have to buy gas for your car. Figure out where you will be going for the month. Limit your shopping days and plan to do multiple errands per trip. Don’t go out every day, or just for one or two little things. (If you know how to calculate your gas usage you may want to do this too to be more exact in your tracking.)
There may be birthdays or other special events in the month. Budget for gifts and events if they are important to you.
You should not skimp on healthcare just because you are doing a no spend month. If you need to go to the dentist or a physiotherapist then go. Keep taking your vitamins and medications. If you know you will need these you can put them in your budget. Perhaps even allow extra for emergencies.
Track your progress...
Use a budget notebook or spreadsheet on the computer to track the different categories in your budget. You can also track the days you have succeeded with your challenge to help keep you motivated. I have made a free printable to help you below.
Examine your feelings when you go shopping...
Recognize if you want to shop because you are bored, depressed, or stressed out and needing a distraction. Or you may even be happy and just want to treat yourself. Feelings can’t be fixed by shopping. The endorphin rush is only temporary and it will make you feel worse when you get the bill. Don’t do this during the no spend challenge.
If you like to shop in thrift stores (or any other stores) for “fun” stay out of them for the duration of the challenge. Assess your weakness and avoid all places that trigger you to spend unnecessary money. Find something else to do for fun that doesn’t cost anything.
You might also want to stay away from social media if you feel envious for whatever someone else has. If seeing their shiny object makes you feel dissatisfied with the shiny object you already have, just stay away.
*Feel gratitude for the abundance you already have.
Preparing for a no spend challenge...
One of the first things I did to reset for the new year was to go through all my food and inventory it. Look through the the fridge, the freezer and pantry to see what you have and what you need to use up. Make meal plans for the week using those things you already have. You may not need to buy anything new, or like me, you may only need to buy a few perishable items.
Sometimes shopping for groceries can trigger unnecessary spending. Don’t go shopping when you’re hungry or you will be tempted to buy more. Take a grocery list that aligns with your meal plan and stick to it.
Declutter your clothes or any other item you feel you need to. Assess what you have and take note of anything you may need. (You probably won’t really “need” anything.) But if you do, you can put it on a future list. If you have any items worth selling, you can use that money to put towards your goal.
Other no spend Tips and rules...
Make a list of anything you know you may want to buy. Can you delay the purchase for another time? Maybe you could borrow it from someone? Is it something you can get second-hand and therefore less expensive?
If you suffer from impulsivity, give yourself a firm rule to wait at least 24 hours to 1 week before buying anything. Was it on your list in the first place? If you still want it after that cooling off period – fine – go and buy it, if it fits in with your budget. A lot of the time, you will find that you don’t really want it anymore. How often have you got your credit card bill and forgot what you bought?
- Delete shopping apps on your phone.
- Delete your credit card info saved on your computer.
- Unsubscribe from email offers.
- Audit recurring subscriptions to see if you still need them.
- Watch inspiring, like minded videos.
- Use websites like Supercook that suggest recipes based on the ingredients you have.
- Have an accountability partner if possible.
- Do it for yourself even if your partner or family isn’t onboard.
Lack forces us to get creative...
I love the old saying from the Great Depression, “Use it up, wear it out, make do or do without.” My dad grew up during this time period so I consider myself fortunate that I grew up learning these values second hand. We’ve all become very spoiled, being able to just go to a store whenever we want something. Is there a skill you would like to learn that could help you save money?
- Sewing
- Knitting
- Hair cutting
- Wood working
- DIY skills
- Basic plumbing
- Changing light fixtures.
- Painting
- Gardening
- Canning
- Cooking
- Cleaning
- Car detailing
- How to change car oil.
- Changing a tire.
A few final thoughts...
Set boundaries with others that might try to sabotage you. Also set realistic expectations for yourself and allow yourself some grace if you “screw up” with a purchase. Don’t give up for the rest of the month just because of that one thing. You don’t need to start on the first of the month, or the first of the week either. Start today and start getting the benefits of a no spend challenge today!
You can watch the video below...
Share this:
