How to Do A No-Spend Month
What I’ve come to learn as a financial coach is that the number one reason people don’t reach their financial goals is overspending. It seems obvious, but it’s true. We live outside of our means, and then wonder why we can’t make any progress on savings, investments, or debt reduction. The truth is, it can be hard to see what’s essential and what’s non-essential when we live in such a highly commercialized world, so sometimes the process of cutting a budget and reducing spending feels totally impossible. What is there to get rid of?
One of the best ways to exercise your budgeting muscles and learn some valuable insight about your money habits is to do a “no-spend month” challenge. It can be more fun than you think and a beneficial method of reaching a financial goal, getting motivated, and being a much-needed refreshment to your personal finance habits.
Here’s what it is:
How to Do A No-Spend Month
It’s difficult to save money and pay down debt, no matter who you are. Part of the difficulty can be comparison. In our world of social media, we are constantly faced with what everyone else is doing, what their lives look like, and wanting to make our homes and lifestyles Pinterest perfect. While going through this experience, I encourage two things. 1) Find what a healthy balance of social media looks like for you. To help with this, check out this book “Love your Life not Theirs by Rachel Cruze.” She does such an incredible job of helping you find contentment and happiness with where you are in your own life and not comparing yourself to others in your financial transformation journey!
2) Doing a no-spend month every so often. It can help realize that conquering financial goals is possible with the right habits, mindset, and perspective.
What Is A No Spend Month?
A no-spend month is a month-long challenge where you only spend money on absolute essentials. Things included in your “four walls” like food, utility bills, gas, mortgage/rent, etc. are the only things coming out of your account! All the extras: morning coffee, gym memberships, takeout, and all the other unnecessary expenses are paused for one month!
This commitment is to really show you what is a need and what is a want. It also shows you how fulfilled you can be spending less and having less! Your no-spend month should be focused on a goal: whether that’s fixing saving challenges, bad habits, overdue debts, or something else.
How Does A No Spend Month Work?
During a no-spend month, you only spend money on essentials. Here’s a list of things you should still buy/pay during your no-spend month:
Mortgage/Rent
Utility Bills (Electricity, Gas, Water/Trash)
Insurance
Other Essential Bills (Internet, Phone, Security System, etc.)
Debt Payments (Credit Cards, Loans, etc.)
Transportation (Gas/Necessary Maintenance)
Groceries
Essential Toiletries or Personal Care Products
Medical Needs
Emergencies or Unexpected Repairs
I hope that helped! However, understand that your no-spend month might look different from someone else’s. Like, maybe someone else would cancel their Photoshop subscription for their no-spend month, but you need it for work. In that instance, it’d be an “essential bill.” Or, for people with kids, their monthly sports or activity fees may still be included in your budget, whereas other people might try to hold off for a month. You need to determine your goals! Find out what works best for you and your household, but also don’t be afraid to step outside of your comfort zone here!
Though there is some flexibility, here are things you definitely won’t be paying for during your no-spend month:
Daily Coffee/Other Drink
Eating Out or Takeout
Gifts
Non-Essential Clothing or Accessories
Entertainment and Hobbies
Non-Essential Personal Care Products
Travel and Vacations
Non-Essential Home Improvement Projects
Non-Essential Subscriptions and Memberships
Home Services like House Cleaners and Landscapers
Okay, you’re all set! Now that you know how to do a no-spend month. Here are some tips for a successful no-spend month:
How To Have A Successful No-Spend Month
Set clear goals.
One of the biggest benefits of a no-spend month is your opportunity to achieve a big goal. Whether that’s saving up a starter emergency fund (I recommend one month’s expenses) or paying off some debt, you’ll need your goal set before you start for the best chance of success. This goal will be your motivation when you’re really wanting takeout or you poke a hole through your last pair of socks. You’ll power through with a good “why!”
Announce your plan to friends and family.
Accountability is great for a no-spend month. Having a financial coach in your corner is your best-bet for staying committed during your no-spend month. However, it’s a good idea to also tell your friends and family, because not only can they encourage you, but they can support you by respecting the fact you won’t be making any unnecessary purchases that month. That way, you don’t have to deal with the temptation to spend when invited to brunch or asked to go shopping. They’ll know that the answer is no, avoid asking at all, and find other ways to socialize and hang out with you!
Rework your budget.
In order to determine if your goal is really possible with a no-spend month, you need to rework your budget. Set it up with the bare bones (and then review it again!) and see how much you have leftover. Then, you can decide exactly how you’ll use that money. Maybe $1,000 will go to savings and $300 extra towards debt? That’s for you to decide! Whatever you do, make sure it’s in your budget.
Use cash as much as possible.
Using cash is one of the best ways not to spend any money that’s not budgeted. Of course, all your bills should come out of your checking account, but things like groceries and toiletries should be purchased with cash. That way, when your cash runs out, you know that’s all you have to spend, and there’s no temptation or ability to go over the amount you planned. It’s a built-in accountability partner for your budget! Here’s more on the benefits of cash over card.
Meal plan.
Groceries (and food in general) can be expensive, especially without a plan. However, planning your meals can be a great way to reduce your grocery bill! You can be mindful to use ingredients for multiple meals before they go bad and you can avoid buying too many extras like snacks and drinks. If you need help getting started, here’s my step-by-step guide to meal prepping!
And, budgeting your groceries doesn’t mean you can’t eat healthy! You can learn more here about how to eat healthy on a budget. It’s all about using lots of kitchen staples and being strategic about how you shop for healthy ingredients.
Swap services.
Need a service like a hairdresser or dog walker? Since you can spend on non-essentials this month, consider swapping services with professionals you know. Just trade skills! Maybe you have a friend with the know-how and equipment for an oil change, so they agree to do your oil change in exchange for house cleaning or help painting a room. There are probably tons of people around you who will barter for services!
Make a list of free activities and comforts.
You or your family are probably going to want to still have some fun during your no-spend month. To keep the temptation to spend out of your mind, make a list of free activities and comfort you can do throughout the month! It could be hiking, having a movie night at home, going to a public library, or attending free events. Just have that list ready for when boredom strikes.
Get creative with solutions.
A no-spend month will definitely challenge you to be creative. Maybe you upcycle things, reuse whatever you can, and take a crack at fixing things yourself when they’re broken. Think through every possible solution when you feel pushed to spend on something you hadn’t planned to!
Have an accountability partner.
Like I said earlier, having a financial coach is the best way to be successful with all your money goals, including a no-spend month! A coach can always be there to push you in the right direction, even when you’re really considering swiping your debit card. They can help hold you to your commitment even when you fight back. A good accountability partner wants you to win!
If you choose not to go with a coach, you can find accountability partners in mentors and friends. However, without the training and the available time, they can quickly get super busy and forget to check in with you. Or, if they’re too personally connected to you, they could have a hard time pushing you when you need it. It’s always best to go with a trained professional!
Here are some pretty crazy stats that show how important these steps are to your success:
10% likely to complete goal if you have an idea or goal set
25% likely to complete goal when you consciously decide you will
40% likely to complete goal when you determine when you’ll do it
50% likely to complete goal if you make a plan
65% likely to complete goal if there’s someone doing it with you
95% likely to complete goal with regular meetings with a coach
Don’t forget about non-essential subscriptions and memberships.
Don’t forget to cancel any non-essential subscriptions and memberships before you start your no-spend month! This could include streaming services, gym memberships, meal delivery kits, subscription boxes, recurrent app fees, online tools, and more. You don’t need these during your no-spend month—and you might find you don’t need them at all!
Pause before you spend.
Before you spend on anything, even if it’s one of your essentials, take a second to think about it. Look back at your cart of groceries and ask if the cookies are necessary. Look again at that car wash upgrade option on the fuel pump and ask yourself if you really need it. And, look again at the office vending machine and ask yourself if you really can’t wait two hours to eat a snack at home. These pauses can be powerful for staying on budget!
Stay busy! (for free)
Staying busy is a great way to distract yourself from wanting to spend. Of course, I mean staying busy for free! Whether you plan free outings, agree to volunteer, or work a ton of overtime while you’re doing your no-spend month, the less time you have, the less opportunity to spend you’ll have. Side note: this is not meant to mean stay busy so much that you exhaust yourself and overdo it. Maybe these activities are more restful like a walk or reading. I personally find that what we expose ourselves to can have a HUGE impact on our mindset. If you are seeking inspiration and motivation during. this month and want a restful activity like reading, here are my top Financial Books I recommend to keep you excited and inspired :)
Reflect on your goals and experiences at the end of the month.
At the end of the month, reflect on what you learned and gained during your no-spend month. What did you learn about your spending habits? How much did you get saved up? How much did you pay off? What new personal finance principles will you bring with you into future months? These are the questions you want to ask yourself!
A no-spend month is a great way to achieve your goals!
No-spend months are a great way to learn about yourself, learn about money, and accomplish goals both big and small. Use these tips to help you be successful and learn just how much you can do with your income! And, if you’re ready to hire a coach to be the ultimate accountability partner, work with me! I help people every day get control of their money, health, and lifestyle. Until then, be sure to browse the blog for more helpful financial resources. I’m here for you!
