No-Spend Challenge
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Every day there seems to be a new challenge on social media. They range from fun and entertaining to downright dangerous – but then you find one that’s interesting and thought-provoking. One that fits well in the latter category is a No-Spend Challenge. I admit that this one gains a lot of popularity during “No-Spend November,” but why not start the no-spend challenge a little earlier?
If you’ve never ventured into a no-spend challenge or financial freeze before, let me explain. As the name suggests, the goal for the challenge is to not spend any money for a pre-determined time. For newbies, jumping into a no-spend month may be a bit too extreme, but a week or a weekend would certainly be more doable. Before we get any further, I need to address the elephant in the room…
A NO-SPEND CHALLENGE DOES NOT MEAN THAT YOU FOREGO PAYING BILLS!!!
No matter what, you are going to have essential needs that have to be met. There are two schools of thought on that.
You can plan ahead so that you don’t have to spend money during your challenge, or you can agree to only have essential spending. “Non-essential” purchases/wants can wait until the challenge has ended – or not.
If your endgame is to change your spending habits and develop a healthier relationship with money, you may not have the desire to spend as much or as often after you complete the challenge. I don’t mean to say that you will never again spend any money on a non-essential (that’s unrealistic and it sounds really boring!) but, you may have a new appreciation for saving and want to be more conscientious in the future.
Where do you begin?
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If you’ve decided that you want to take on the challenge, but don’t know where to start, it’s best to start with where you want to end. I know that sounds confusing so let me explain. Take the time to determine your financial goals and what you are doing to achieve them. If you have been following my budget advice, you have probably already done that…right? Once you know what you want, you can calculate the steps to get there. Need an example? Let’s say that you are pretty good with money, but you want to be able to save another 5% of your income. Calculate how much that is and check your spending to see if it is possible to make that happen. This no-spend challenge comes in handy if you have developed some “bad” financial habits that are preventing you from reaching that goal.
Set clear rules and goals
Start by writing down your goals! While you’re at it, write down your challenge rules and post them where they are visible to you every day. You want a reminder close by when the challenge gets difficult. You might want to put one in your car, near your phone, iPad, or computer, or wherever you do your shopping. You can also opt to take part in a group challenge with set rules, but make sure that you will be able to do what is expected. Consider upcoming events that may call for gifts or food and plan accordingly. One great benefit of participating in a group challenge is being held accountable. Just like when you start a new diet or exercise plan, having a buddy to talk to can help you overcome hurdles and celebrate your wins along the way.
But…how?
You know what the rules of the challenge are, but how are you going to make it through to the end?
Get creative – Breaking a habit is hard to do. You are going to have to find alternative ways to live during your challenge and afterward. That means finding the best free family entertainment and kid-friendly activities while staying preoccupied, and motivated. A good support system helps, so make sure your family is on the same page and share your progress with friends so they can help you succeed.
Avoid impulse buying triggers – Does late-night insomnia send you on a beeline to Amazon? Will returning items to Target set you on a shopping frenzy? You have to know what triggers your spending to avoid it. It will help to remember this when your willpower is waning.
Use this time to clear out your pantry, fridge, and freezer. Meal planning is a great way to save money and use items before they go bad. Why not plan some freezer meals leading up to your no-spend challenge? You can avoid spending money at the grocery store or dining out and make saving a habit.
Plastic counts. Consider your credit and debit cards off-limits during your challenge. On the other hand, if you have a bunch of gift cards lying around, now is the time to use them!
A no-spend challenge doesn’t have to be a “one-and-done” deal. You may find that you enjoy the process and, of course, the outcome of saving all of that extra cash! Consider trying these challenges throughout the year to help you save for your next vacation, or to finally break free from the cycle of debt.
My goal is to embark on a quarterly challenge. What’s yours? Leave a comment below or email me.
Krista Kyte is a personal finance blogger and personal banker with over 18 years of experience in the financial industry. Krista is passionate about helping our members understand their financial situations. She writes tips that will help consumers reach and maintain financial security, and start living the life they’ve always wanted.
