A no-spend challenge is detox but for your finances. It is a way to get your finances and keep out unnecessary splurges. What it entails finding new ways to do fun activities with friends and family without spending, tweaking your daily habits –whether it’s eating out or impulse buying.
The idea is pretty simple; it means you go a day, a week, or even a month without spending money except on necessities.
Simply put, a no-spend challenge is when you set a goal for yourself to avoid spending money on items you don’t need or want. For me, it’s stopping impulse buying of candies, yogurt, coconut flakes e.t.c. A no-spend challenge can be different things for different people, like giving up cereal, Netflix subscription, or restaurant hopping.
A no-spend challenge allows you to become self-aware and know the amount of money that you are spending. It’s an expense tracking system that shines a light on your bad financial habits.
The idea of the no-spend challenge is to spend money on what you need and is necessary like:
- Internet, utilities, phone, and car bills
- Medical bills
How To Do A No-Spend Challenge
Here are a few things you should consider if you are looking to do a no-spend challenge:
Figure Out Why You Are Doing a No-spend challenge:
Before you start a no-spend challenge, have a goal in mind and talk about why you want to stop spending on specific things. Is it to pay off a debt, save for a phone or a vacation, or try to be more financially responsible? Regardless of what your goals are, short term or long term, starting a no-spend challenge requires an identified purpose.
Set A Time Frame:
Establishing a specified number of days each month when you will not spend money is a simpler method to implement a spending ban into your life. You can begin with a five-day challenge or progress to a 15-day challenge.
An excellent place to begin is going a few days without spending money to reveal a lot about your spending habits. For a few days, you can try going for a week or a month without spending money. Having a time frame will necessitate the most planning and discipline. If you do it for this long, you’ll save even more money in the end. In fact, this could be a good strategy to make long-term adjustments in your financial habits.
Find New Ways to Have Fun:
The idea behind a no-spend challenge is not to spend extra money on things that are not a necessity. But you don’t have to sit at home doing anything while counting down the days just because you aren’t spending money. It is not necessary to spend money to have a good time.
Exploring the great outdoors, picking up a new activity like reading, movie streaming at home, spending quality time with friends and family, and going to a free event.
Track Every Spending:
Keep track of your everyday spending so you can take note of all your expenses — and celebrate — when you don’t spend anything. This way you will learn about your spending habits and where your priorities lie when it comes to spending. It allows you to be mindful not to overspend.
To effectively do a no-spend challenge you need to plan ahead, think of ways to minimize your spending triggers, reward yourself when you reach a milestone, and share the good news with family and friends.