Find out the goal of the no spend challenge and tips on how to hack it. Check how to save money for the things that matter.
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Last year I decided that I’m a shopaholic and need to do something about irrational spending on dresses.
Usually, I’m a very rational persona in terms of budgeting. Moreover, I blog about personal finances and side hustles! Plus, I lead frugal lifestyle.
But I love challenges and love to push my limits to see what’s happening when I’m out of my comfort zone. Therefore I’ve decided to set a no spend challenge as one of my New Year resolutions.
No spend Challenge Goal
The goal of the no spend challenge is to reduce the amount of money spent on non-important things and save money for the things that matter.
My personal goal was to figure out if I can survive without apparel shopping, which I love! For me, it is very hard to leave my favorite shops without new things. Luckily, there are only several brands that I love and ready to buy everything. But still. I wanted to see if I can go through the challenge.
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No spend Challenge Rules
As strict as it may sound, no spend challenge is not about not spending at all. It is about no spending on stupid stuff that you actually don’t need.
To help you figure out what is permitted and what is not, here is a list of simple rules for the no spend challenge:
What is included in no spend challenge:
1. Healthy daily food.
We need food to stay alive. Therefore food expenses are excluded from the no spend challenge. Just make sure to buy what you’re going to eat and utilize leftovers.
I’m very concerned about food consumption because in the United States food waste is estimated at between 30-40 percent of the food supply, according to USDA.gov. With annual food expenses between $4,400 and $14,000 average amount of waste can cost $1,320 and $5,600.
Just think about these numbers! If you spend wisely, you can put aside up to $5,600 towards a saving account.
2. Necessities.
Think of household items and things you can’t substitute. Home/car/internet/utilities/etc. expenses are included.
3. Medical expenses.
No questions here. Just don’t go overboard and do a plastic surgery just because you want to. If you need to, then it is a totally different question.
4. Gifts for your dear ones and for yourself.
No doubt that our goal is to save money. But it is also important to treat yourself to keep motivation.
5. Things that broke and can’t be fixed
Things break. Try to fix them before giving up on them.
6. Planned travel
We all love traveling. Either it is a trip home for Thanksgiving or a long awaited trip to Europe, make sure to plan it ahead to avoid impulsive expenses.
Moreover, traveling can be done on a budget if you know the right tricks.
Check my post about Best Travel Hacks & Tips to Travel for Less.
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Tips to succeed in No Spend Challenge
To complete the no spend challenge successfully, I suggest incorporating a frugal lifestyle into your life. Frugal living is about smart spending and responsible consumption.
Here are some tips that will help you along the way and especially during no spend challenge:
1. Buy only what you need.
If something is broken, then before making a purchase, think if you can fix it. If you’re about to buy apparel, think if you really need it or it is a nice to have purchased. For every major purchase, think a day or two. Sometimes we look for excitement from a purchase more than an actual thing. That is totally my case with apparel shopping. Therefore, think twice before any purchase.
2. Incorporate meal planning.
This will help you stay on track with purchasing only the food items you need, safe on food, and follow a healthy diet.
3. Find free entertainment.
Instead of going to a movie theater, you can play board games, for example.
4. Use a library instead of buying books.
I read a lot and suggest you do so. But books cost a lot when you read a couple of them per month. Using a library can be a great way to stop spending money on books. Moreover, once I signed up for my local library, I started to read more!
5. Stop shopping at coffeeshops and brew your own coffee at home.
I love coffee with all my soul. I even blog about it here. A long time ago, I had a golden status with Starbucks that I lost because coffee shops are non-essential expenses. You can brew coffee at home, use a thermo cup, and save money!
Here is my favorite thermo cup: Corkcicle Tumbler in Rose.
Find out more frugal lifestyle tips in my post What is Frugal Living & How to Live a Frugal Life?
Final thoughts
To sum everything up, I’d like to say that no spend challenge helps to see clearly what matters and what expenses are non-essential. No spend challenge can not only help you save money but also to put your budget and spending in order.