This post is by our regular contributor, Erin.
Have you ever participated in a no-spend challenge before? Has the idea intrigued you? Or did it scare you away?
As you might guess, a no-spend challenge involves not spending money…but it doesn’t have to mean you stop spending all your money in one go.
You can choose to stop spending money in “trouble” areas like restaurants, groceries, or clothing, or you could choose to go all out and impose a total shopping ban on yourself, aside from necessities.
You can hold the challenge for a week, a month, or a whole year. It’s up to you.
If you’re on the fence and you’re considering a no-spend challenge, there are a lot of benefits you can reap by participating in one.
My Not-so-Normal Experience With No-Spend Challenges
I have to admit, I haven’t done a no-spend challenge in the traditional sense, but that’s all the more proof there’s no one definitive way to do it.
There was only one thing I ever intentionally stopped spending money on. A few years ago, as I was reviewing my expenses, I realized I needed to stop spending so much money on beauty related things. It was getting a little out of hand.
Literally any time I went into Target or Walmart, I would find myself browsing the cosmetics aisles. After amassing quite a collection of makeup, I knew I had to start spending my money more wisely.
I didn’t declare myself to be on an outright “beauty products” shopping ban, but in my mind, I committed to only buying things when I needed them…and I haven’t looked back since.
In the non-traditional sense, when I moved, I decided to be much more intentional about what got brought into the apartment. I was amazed at how much stuff I had managed to acquire over the past few years, and now that I’m moving again, I’m hyper-aware of it.
So I didn’t go on a shopping ban per se, but I got majorly turned off to knick-knacks being around my place. If anyone suggested buying me something that wasn’t functional, I wanted nothing to do with it. I value my space; I don’t value things. My spending naturally aligned with that, and my bank account has profited!
Anyway, enough about how I’ve benefitted from “no-spend” challenges. Let’s talk about how you can get use them, especially if you’ve discovered a bad spending habit that you want to get rid of, or you’re in credit card debt!
1) No-Spend Challenges Save You Money
Obviously, the clearest benefit to challenging yourself not to spend money is that you’ll be saving it!
However, you need to make sure you’re taking action with the money you’ve saved. It’s one thing to stop spending $3 everyday at a coffee shop, but if you spend it on a snack at the vending machine at work, you’re not doing yourself any favors.
Each time you don’t spend money, try to remember to keep a tally of it. Transfer the money you’ve saved to a specific savings account you set up for the challenge.
Having a goal for your money will help, too. Are you going to use the money toward debt? A vacation? A new computer? Give yourself a little extra motivation to succeed!
2) No-Spend Challenges Uncover Spending Triggers
I think the biggest benefit to no-spend challenges is that you’ll likely figure out exactly why you have the spending problem you do.
For example, maybe entertainment expenses are super high for you, and you’re trying to cut back on that by finding fun, free alternatives.
But every time you’re tempted to spend on entertainment, you’ll have to stop and tell yourself “no, not while the shopping ban is going on.” At the same time, you might question why you feel the need to spend.
Is it because your friends are going out, and it’s a good way to spend time with them? Are you afraid you’ll miss out on something?
In any situation, you should figure out what action you need to take to develop better spending habits. Perhaps time with friends is something you simply value enough to spend money on, but you realize you prefer an intimate potluck dinner as opposed to going to a comedy club. Or maybe you realize staying in once in a while isn’t as bad as you thought.
3) No-Spend Challenges Force You to Use What You Have
I find this to be very true when it comes to groceries, stuff that gets sent to the garage/attic/shed/closet, and clothes.
I actually hate grocery shopping. I really do. This sometimes works to my advantage, because I will try to empty out my freezer, fridge, and pantry to delay going.
Instead of shopping, I ask myself what kind of meals I can string together so I can go out tomorrow (or next week) instead. You might be surprised at what you can do with all the food you have when you’re desperate!
On the “stuff” front, I’m willing to bet many of us have bought something we already had, at least once, because we either forgot about it or couldn’t find it. It’s the worst feeling to come home and then magically find what you need hours later.
Clothes? Forget it. I have a closet and drawer full of clothes. I also happen to hate shopping for clothes, so I’ve focused on buying classic, plain pieces of clothing that I can mix and match and create new outfits from easily.
In all of these cases, putting yourself on a shopping ban means you need to get creative and resourceful. You’ll have to use what you already have in your home (or closet) to “survive” the next week or month or so.
4) No-Spend Challenges Make Values Clearer
Should you choose to do a total no-spend challenge, or critically evaluate your spending to see which areas you struggle with, you’ll probably get clearer on what you value in life.
There are so many things we spend on without question because it’s simply automatic. A friend of mine once told me a coworker of theirs stopped at McDonald’s every day for the same exact breakfast. They never skipped a day. It was just their routine.
Well, having a no-spend challenge will definitely disrupt your normal routine, so much so that you’ll have to question your spending decisions. That’s not a bad thing, because you look deeper into what makes you happy.
Maybe you’ll come to the conclusion that spending on coffee, clothes, makeup, etc. doesn’t actually bring you the happiness you thought it did. You clearly don’t value them enough, then. Instead, you should start focusing your spending on your values, so that you’re spending money on things that will make you happy.
A No-Spend Challenge is a Great Way to Get Your Finances in Order
Again, no-spend challenges are whatever you make them to be. You don’t have to follow anyone else’s rules. This will work better when you personalize it.
Some people freak out trying to imagine going a month without grocery shopping, meanwhile, I’ve seen many people complete that challenge successfully. It’s all about getting prepared beforehand.
You shouldn’t make the decision to do a no-spend challenge on a whim. Carefully consider the implications, your limits, and other life circumstances. For example, if work is going to be insane for you for the next month, perhaps you’re better off delaying until things calm down.
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Either way, I think everyone should do a no-spend challenge in some area of their financial life at least once. It’s very insightful, and if done correctly, will prove useful for years to come. At the very least, you’ll have the confidence to know you can do it after going through it once!
Have you ever completed or set a no-spend challenge? What were the rules? How long did it last? Do you think no-spend challenges are a good idea?
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I LOVE a good challenge. I think it forces you to prioritize and focus on whatever it is that you’re doing in the challenge, which helps you succeed when you otherwise wouldn’t.
I don’t think they are a good idea overall. People who have said they are doing them always have exceptions, which is, in my opinion, not a no spend challenge. I think if you are restricting your buying to certain things that are important to you, you are spending mindfully, a big difference. I also think what you resist, persists. Can you tell I’m not a fan? lol!
I think no-spending challenges are very valuable. Often times after you complete the challenge, you realize that you don’t really miss whatever you were spending on all that much. Another benefit is as you mentioned…using what you have. We have so much stuff already that we don’t use and a lot times we just buy more, so it’s good to be forced to use what you have.
I’ve not really done a no-spend challenge in the traditional sense outside of being forced into it when I was paying off debt. I’m more along the lines of Tonya with mindful spending as I’ve found it helps us better align our spending with our goals.
I’ve considered doing a no-spend challenge. The only area I anticipate having trouble with is socializing. I like to go to happy hours and other social events that require you to spend money.
Financegirl It can definitely help you reframe things!
jdonovanart That sounds awesome! I really need to start giving myself a time limit for grocery shopping. That + a list = speedy trip and less chances to spend on unnecessary things!
Beachbudget I do agree with the whole exception thing. Some people can go overboard on that. I (unintentionally) went a year without buying clothes or anything related to that. I just hate shopping that much, haha. But I get that unexpected events arise and maybe you need to plan accordingly. I’m much more of a fan of spending mindfully, but I know that doesn’t come naturally to some people, in which case, a no-spend challenge can at least give them a push in that direction.
Andrew LivingRichCheaply Exactly! There are things we get so used to buying that it comes naturally and we stop questioning it. No-spend challenges can overturn that mentality.
FrugalRules I’m with you two there! I love mindful spending. I don’t intentionally force myself not to spend, but a general “rule” I follow for myself is no bringing useless stuff into my living space. That naturally makes me spend less since I always question and items usefulness to me.
Aliyyah Perhaps you can start with a specific no-spend challenge outside of the social/entertainment area? If you don’t go overboard with spending on hanging out with people right now, there might not be as much sense in doing a no-spend challenge there. If you do, you could always ease into it and just limit the amount of times you go out, or how much you’re allowed to spend in a given night. Sometimes “no”-spend challenges are a little more than you need!
I used to do them but it was much easier when I was single and financially responsible for an adult household, and still had impulses to buy things for fun or entertainment. Now that I’m married and have a small child, the landscape has changed. I stopped spending frivolously and don’t spend mindlessly on anything so long ago that there’s no real benefit to forcing me to bunch up my spending for necessities at the start or finish of a no-spend period.
I had never heard of ‘no-spend’ challenges and to be honest, I’m inclined to doubt their effectiveness. They seem somewhat analogous to diets [the verb]. As we all know, when people drastically change how they eat over a short time period, they do lose weight. However, over the long-term, they typically gain back the weight. A better approach is to adopt a reasonable diet [the noun] that will become a part of how one lives and can be maintained indefinitely. Same with spending/saving money. Instead of dramatic short-term practices, a better approach is to develop a plan that methodically works better habits/practices into a life. Habits and practices that can be maintained over the course of a lifetime.
RevAGSL Nice! I do think our shopping habits tend to change with the phases of life we’re in. It seems like a lot of people stop spending as much once they have kids and a house to take care of. More financial responsibility means thinking twice about purchases.
James @RetirementSavvy I tend to agree with you, James. I think no-spend challenges can be effective in the sense that hopefully, it can give people the motivation they need to make a change. I’ve seen quite a few people experience epiphanies after a no-spend challenge that made them then adopt the necessary habits to change their spending. On the other hand, you’re right that solely doing a no-spend challenge is just a bandaid. The purpose isn’t to do it and then reward yourself with more spending and forget that it happened. So I would say, go into a challenge with a clear goal and be very intentional about it if you choose to do one.
I was JUST recommending this to my mother. She has really bad finances and spends like crazy. She’s always buying extra, “little” things. I told her to aim for one week. Unfortunately, she decided not to even try. The next chat with her will be about how she doesn’t really want to get out of debt, if she won’t even TRY to go without spending anything for a week.
As for us, we had an expensive weekend at the end of February (first dinner out in a while for hubby’s birthday and bowling with the kids), so we have challenged ourselves to go without weekend spending for the month of March . . . so far, so good :)
Harmony@CreatingMyKaleidoscope Ah, it’s so hard to talk about finances like that with people sometimes. I’ve tried with my parents, and there are just some things they refuse to budge on.
That’s a perfect example of a great challenge! Super simple and not too restrictive.
I really like no spend challenges to help me reset my finances if I feel like I’ve been spending too much. I usually do no spend weekends or weeks and as long as I have food in the fridge and don’t have rent or bills to pay, I try not to spend anything.
Chonce Yeah, that’s exactly like what I do, except I just kind of do it unintentionally. Then when I realize it’s been a week since I’ve gone grocery shopping, I get more motivated to try and extend it, haha.
I have been doing this each month for the past few months. Usually it’s around the end of the month for 3-7 days. It helps me use up groceries, refocus on my spending and bills and get back in the saving zone. It’s really not that hard if you have the right mindset and saves me a decent amount of money!
believeinabudget That’s awesome! It’s definitely a good “end of the month” tactic to use to get yourself back on track to start over for next month. I’m sure a lot of people could benefit from a no-spend challenge where groceries are concerned; I know so many people with super stocked fridges pantries, and they end up throwing so much out because it goes bad.
I tried a month long one and caved for takeout food. I knew eating out was my weakness and this confirmed it! I try to have at least 1 or 2 no spend days each week and I’ve found that I don’t even have to try anymore! Not sure I’d attempt a month again though.
SimplySave I’m glad you discovered something from it! Groceries, shopping, and dining seem to be the biggest ones. It’s great you’re naturally having no-spend days!