How to succeed at the ‘no-spend’ challenge | Saving money
Define your goals
The rising cost of living has placed huge pressure on household finances, so taking a no-spend challenge can help you to get a grip on your outgoings. You still pay for essentials, such as your mortgage and utility bills – the focus is on cutting out any extra spending on unnecessary items, whether it’s takeaway coffees, clothes or impulse buys.
It’s helpful to have a specific goal. This could be building an emergency fund, or saving for something in particular, an event, maybe, or weekend away. Think carefully about this and try to find something achievable to start with rather than setting yourself an impossible target.
You could write down your goal or cut out images from magazines to stick on a vision board to reinforce whatever it is you’re saving towards. This may help when you’re at risk of being distracted by your normal spending urges.
Maddy Alexander-Grout, a consumer money specialist who runs an app called Mad About Money, sets aside at least one day a week as a no-spend day. She says: “Over a month doing four to five no-spend days we save about £250. This money is being put towards our holiday to the Isle of Wight this year.
“I’ve always written down the things we’re saving towards, and once we hit a target we start working towards the next, which is now saving more for a deposit on a new house.”
Set your rules
You can adapt the challenge so that it works for you. Like Alexander-Grout, you could pick a day each week to avoid spending, or you could choose a longer period and do it less regularly.
Francesca Henry, the founder of The Money Fox, a platform that helps women learn how to budget and build wealth, says: “I started by not spending for a week and then increased the period when I wanted to delve a bit deeper into my spending habits. I use it as an analysis tool, rather than seeing it as a really strict challenge.”
Ultimately, a no-spend challenge is about gaining more control of your finances, rather than rigid restrictions. “You might have a certain event during the period that you decide to spend on, such as a day out with the kids,” says Henry. “It’s up to you whether you allow yourself to do that or not.”
Plan ahead
If your rules are that you cannot spend at all you need to make sure you have your essential needs covered before you start your no-spend challenge. This includes making sure you’re stocked up with toiletries you use every day and the food you need for your no-spend period.
To help you resist temptation, set aside a little time to first unsubscribe from any tempting sales emails you receive from retailers. You could also delete your payment information from sites that make it simple to shop at the click of your mouse, and remove your card information from your phone. Adding hurdles to make it harder to spend will give you time to think twice before you break your rules.
Get creative
You might be on a spending ban, but that doesn’t mean you can’t enjoy yourself. If you search the hashtag #nospendchallenge on social media you’ll find various posts on using this time for free creative pursuits, self-care, and finding new hobbies.
Lynn Beattie, a personal finance expert and the founder of the blog Mrs MummyPenny, says: “Days out with the children during a no-spend week may involve long walks and homemade picnics, time with friends might be a video call or popping to their house to watch a movie rather than an expensive restaurant meal.”
You could explore free events in your area, community gardens, or online courses. You could borrow books from the library instead of buying them, or start do-it-yourself projects to develop new skills, such as repairing household items, and clothing, or making homemade gifts.
Keep account
A good way to stay motivate is to track your progress so you can see how far you have got towards your goal. There are various ways to do this. Try printing off a no-spend calendar and ticking off every day you make it through, or using stickers to mark the days as you go.
You could use a no-spend diary to write down your challenges, and what you are learning along the way. This can help you to reflect on your successes, and what does and doesn’t work for you for future no-spend periods. Making notes each time you resist spending on an unnecessary purchase can be a useful process.
You might want to explain what you’re doing to your family and friends to keep yourself accountable, too….
Read More: How to succeed at the ‘no-spend’ challenge | Saving money