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Have you completed a no-spend challenge? Maybe you’ve thought about it but you weren’t convinced.
I’m here to tell you that no-spend challenges are definitely worth it!
A no-spend challenge has allowed me to drastically reduce my spending (I am a recovering shopaholic – btw), eliminate unnecessary debt and meet particular savings goals (such as saving money for maternity leave)
Is it possible for you to go just a few days or maybe a week without spending any money? Imagine the amount of money you’d save if you packed your lunch all week or avoided that afternoon Starbucks run? Would you be able to reach your financial goals if you temporarily eliminated these expenses? Hmmm, that’s something to think about.
What is A No-Spend Challenge?
Let’s be clear, you will spend money during a no-spend challenge. It would be impossible not to spend any money. Recurring expenses such as bills, gasoline, groceries and rent/mortgage must be paid in full each month. Unfortunately, there’s no way to avoid this.
A no-spend challenge is when you spend money on things you need. It’s up to you to determine the time frame of the challenge. The challenge can be done only on weekends or you can extend it to a month or two. The choice is yours, there’s no right or wrong way. In order for it to work, you must set realistic goals.
Is A No-Spend Challenge Necessary?
Based on my own experience, I believe a no-spend challenge is very necessary as it’s a great way to get your mind and your finances back on track. As a mom, I find that I am a creature of habit. I tend to fall into the same routines on a weekly and daily basis. These routines often spill over into my finances. I pay bills, buy groceries and I’ll purchase a few extra items here and there.
A no-spend challenge helps me to bring everything back into perspective. When my spending is on the verge of getting out of control, I know it’s time to get my finances together, like ASAP.
By completing the challenge, I’m able to:
- Reevaluate my spending and get my finances back on track
- Set Goals (such as replenishing my emergency fund, paying off a credit card)
- Jumpstart my savings fund for goals for household projects or personal goals
I am guilty of purchasing items without giving any thought to it. It’s easy for me to pull out my debit card without fully thinking about the purchase. A no-spend challenge is a way to evaluate my purchases and determine if the purchase needs to be made beforehand. It gives me to discipline to say no when I was always accustomed to saying yes.
How A No-Spend Challenge Works
It all begins by setting boundaries. The premise behind this challenge is to focus primarily on your wants, and not giving into your needs.
I’m not telling you not to spend money, you are allowed to spend budgeted funds on:
- Monthly Mortgage/Rent Expenses
- Household Expenses (Utilities – ex. electricity, water, gas)
- Child Care Expenses (if applicable)
- Internet/Phone Expenses
- Groceries, if you have a set budget allotted in this category.
- Automotive Expenses (ex. Fuel/Auto Insurance) for your vehicle
How To Start A No-Spend Challenge
- Set Goals. Ask yourself what are you trying to accomplish? How much do you want to save? The answers to these questions will help you to meet your end goal.
- Plan Ahead. – Evaluate your prior spending. Identify your weaknesses and develop a plan that prevents you from falling back into this habit. Review your prior budget to examine how much you’ve spent on impulse purchases in the past 30 days. By doing this, you can determine how much you’re projected to save during the challenge. As you complete the challenge, be sure to make changes as needed.
- Challenge Duration. – Set the time frame. Figure out when you will start and end this challenge. Ask questions, will I be able to commit to a weekend challenge or a 30-day challenge. Make realistic goals!
- Identify your Spending Triggers. – Can you drive by Starbucks without being tempted to purchase a coffee? Target is my weaknesses. I have to take alternative routes because I’m always tempted to walk in. The store is very enticing. The overall atmosphere is inviting. It’s the perfect combination to set you up for failure…LOL. I’m kidding. I always walk in with the intention to pick up a few items. Next thing I know, I’m walking around the home decor department when my intention was to go in and pick up a bag of sugar. Placemats, candles, and decorative items weren’t on my list. I am always having a come to Jesus moment when I approach the register. There was a point in time when I’d purchase those unnecessary items because I felt guilty telling the cashier that I no longer wanted certain items. How crazy is that?!
Tracking Progress with No-Spend Printable
To ensure that I meet my goals for this challenge, I created a template and I post my monthly progress on Instagram. Click here to follow my debt-free progress on Instagram.
This no-spend tracker is a visual that allows me to see how I’m progressing on this challenge. Initially, when starting out, I didn’t apply myself as much as I should. When I decided to document my progress and post it on Instagram to hold myself accountable, I took it a little more seriously.
Download the FREE No Spend Challenge Tracker to document your progress. If you’re nervous, start slow. This is your journey, you are the only one who can determine what’s feasible and what’s not. Take it slow and remember this is just temporary. You can always go back and purchase that coffee from Starbucks or that #4 combo from Chick-Fil-A. Hey, you never know if you master the no-spend challenge you can incorporate it in other areas of your finances and save mo’ money, mo’ money and even mo’ money!
After tracking your progress, take some time to think about those days when you used your card. How did it make you feel? Did you have regrets after making the purchase? What motivated you to stop spending during the challenge?
Ultimately, this challenge is to make you aware of your spending habits. If you overspend in certain areas, this challenge will help you to reel things back in and possibly save money that can go towards your saving goals.