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The 30 day no-spend challengemeans to stop spending money on non-essentials for a fixed time. Many people do no-spend challenges for one month. Thirty days is long enough to cut bad spending habits but not so long that you feel there is no end in sight. You can start with one day or one weekend if a month seems daunting.
The longer you go without spending money on non-essentials, the better off you’ll be. You won’t skip your rent payment or necessities, but you will eliminate discretionary spending.
The amount of money you can save when you don’t buy anything you don’t have to may surprise you.
Why Do a No Spending Challenge?
If you want to start living below your means, recover from money missteps, or progress toward financial goals, a no-spend challenge is excellent to get your finances on track. By doing a no-spend month, you can rid yourself of bad spending habits and increase your savings at the same time.
Doing a 30-day no-spend challenge forces you to evaluate your relationship with money, examine your daily habits, and think about your money goals. You can use the time to build healthy spending habits. You’ll also save a good chunk of money relatively quickly.
How Much Can You Save on a No-Spend Challenge in a Month?
Most people can save a few hundred dollars by doing a no-spend challenge. That’s a reasonable expectation, but it’s not unreasonable to think you could save $1,000 or more. It depends on your spending habits and discipline.
All the cash you might typically spend on entertainment, meals out, and impulse spending stays in your bank account. You’ll see how much money you usually spend unnecessarily and uncover poor spending habits.
Review your spending for the last month to figure out exactly how much you can save. You’ll likely identify some things you could stop buying to save money and possibly some bad habits. Total up your spending on wants and other non-essentials.
How much is left if you cut out everything except your monthly bills and basic needs? That’s close to how much you’ll save during your no-spend challenge.
You could discover ways to save even more during your challenge by reviewing your monthly spending. For example, you might cancel that gym membership you don’t use, give up a bad habit, or switch to a streaming service like YouTube TV instead of cable.
How to Do a No-Spend Challenge
The rules of no-spend challenges are simple enough: don’t spend any money you don’t have to. But simple doesn’t mean easy. No spending for a month might seem daunting, but it can be done.
Here’s everything you need to do to complete a no-spend challenge successfully.
1. Know Your Why
Why are you doing this? Maybe you want to:
- Eliminate out-of-control spending habits and build good money habits
- Save a significant sum of money quickly
- Get one month ahead on bills
- Start an emergency fund or add to your existing one
- Free up extra cash to put toward your financial goals
Before you start, be clear on your reason for going on a spending diet. Keep it in the front of your mind at all times.
If you struggle during the challenge, remind yourself why you’re doing it. A gentle reminder might be all you need to change your daily habits and stay on course.
2. Pick Your Time
The sooner you can start your spending freeze, the better. You will need time for preparations. Some months might be better than others as well.
Doing a no-spending period around major holidays or special occasions is difficult. Discretionary spending is practically unavoidable during these times, so you probably won’t maximize your savings. You can still do it, but leave room for holiday spending and travel.
Don’t make it harder for yourself, but don’t wait for the perfect time to start. You might never find an ideal time.
3. Pick Your Time Frame
30-day challenges help establish new routines without being overly long. You might not want to jump into a month-long spending diet at first. Try a no-spend weekend instead.
People typically spend more money on the weekend. Two consecutive no-spend days could put that money back in your pocket. Fill your weekend with fun and free activities, or catch up on things around the house.
Prove to yourself you can go a whole weekend without spending money. Once you do that, extend the challenge to a week or two, then move on to an entire month.
4. Set the No Spend Challenge Rules
No spend challenges are about being intentional with your spending. First, identify your needs and wants. There are bills and essential items that require spending money. Things like:
- Rent or mortgage
- Utilities
- Gas and transportation
- Groceries
- Basic household items, like toilet paper
- Internet and phone
- Insurance
- Prescriptions and other out-of-pocket health care costs
- Pet food
- Daycare
- Credit card payments
- Payments on student loans
These are the expenses you need to survive, satisfy your obligations, and meet your minimum standard of living. Anything other than that is a candidate for cutting during the challenge. Consider eliminating:
- Restaurant meals
- Coffee shop visits
- New clothes
- Movies, video games, and other forms of entertainment
- Leisure travel
- Beauty products
- Getting your hair done
- Hobbies
- Impulse purchases
The more unnecessary spending you can eliminate, the more you save.
5. Set a Savings Goal
If you eliminate your discretionary spending, you should have a nice chunk of change saved at the end of the period. Stay motivated by setting a target number. Decide what you will do with the money you save when the challenge ends.
You can set a realistic and achievable goal by reviewing your expenses for the previous month before starting your challenge. Once you have a dollar figure set, decide how to use the money.
You could pay down debt, get a month ahead on your bills, add it to your emergency fund, or use it to pay for a shorter-term goal like a vacation or the holidays.
Sticking to the plan when temptation strikes is easier if you have a savings goal in mind. You’ll remember why you’re doing the challenge and what it means. You also won’t waste money when the challenge is over if you have a goal.
6. Get Your Family on Board
If you’re going to do a no-spending money challenge, it requires a total family effort. It won’t work otherwise.
Gather the family together and go over the rules. It might help to make a game of it.
Talk to your kids about the benefits of saving and explain your goal. Kids need to know that not spending money does not equal punishment or not having any fun.
No Spend Challenge Ideas for Planning Ahead
Going from spending money on your wants to eliminating them for an extended period requires some planning. It’s not something you can jump into with no thought.
Minimize the need to spend money or head to a store where you might buy something you shouldn’t.
- Plan your meals
- Create a list of activities you can do as a family that cost nothing
- Let friends and family know your availability might be limited
- Decide what you’re going to do when temptation hits. Make a list of alternatives. You might write down something like this: “When I feel like going to a restaurant, I’ll stay home and have a healthy meal with my family instead.”
- Pick up any pet supplies, cleaning products, and other essentials you need for the month before the challenge starts. Minimize the time you spend in stores during your spending diet.
The more you can prepare beforehand, the smoother the challenge will go. Here are three additional tips to help you succeed:
1. Track All Spending
Sticking to it might be tricky if you’re doing a no-spend challenge longer than a weekend. Tracking your expenses is critical to staying within the rules and holding yourself accountable.
If you’ve started a budget, you probably do this anyway. If not, set some time aside once a week to keep tabs. You don’t have to do it every day.
Watch your savings grow. It gives you an extra scoop of motivation. If you find you’ve gone off track, you’ll spot it. Figure out what needs to change to help you stay on course.
2. Stay Away From Temptation
We’re bombarded with marketing messages all day, every day. Turn on the TV, fire up your favorite news website, or take a drive, and you’ll see plenty of ads all designed to get you to part with your money.
Here are five tips for avoiding temptation:
- Skip regular television, which contains too many ads. Stream movies or your favorite shows instead.
- Unsubscribe from store email lists. You don’t need to know what’s on sale, and you don’t need the latest coupon codes since you won’t be doing any online shopping or non-essential spending.
- Throw the sales flyers, postcards, and other mailers you get from stores straight into the bin without thumbing through them.
- Limit your availability. Let people know you won’t be available. It’s hard to say no if you’re constantly receiving invitations. If you inform people that you won’t be available or tell them what you’re doing, you’ll reduce the number of offers you refuse.
- Know what to do when temptation strikes. Make a list of alternatives. You might write down something like this: “When I feel like going to a restaurant, I’ll stay home and have a healthy meal with my family instead.”
3. Put Your Credit Cards Away
Not spending your available cash and charging something instead is cheating. Don’t allow yourself the option. Take your credit cards from your wallet and stash them in a drawer. Leave the house with your debit card and a list of essentials.
We all have spending triggers, and we all crave instant gratification sometimes. Stay away from temptation as much as possible.
What to Do if You Break the Rules
It’s hard to go from spending with little regard for how much or why you spend to being intentional and only spending on the things you need to live. What if you purchase a non-essential item or spend some unnecessary money?
If you slip, forgive yourself and move on. Don’t beat yourself up, and don’t quit. Tomorrow is a new day and a new opportunity to move forward.
Feel Free to Reward Yourself
At the end of your challenge, the money you save is the reward. But you can also allow for something more than a high five. Setting aside some guilt-free fun money at the end of your challenge is fine.
Enjoy a small treat, but don’t go crazy and undo all your efforts. It will give you something to look forward to and help you fend off frugal fatigue, that feeling you get when you feel sick of living on a budget.
Is a No Spend Challenge Worth It?
No spend challenges are worth it if you want to save money aggressively. They’re perfect for getting your finances in shape. You can use the money you save to establish an emergency fund, pay down debt, or build momentum toward your financial goals.
