Are There Benefits to a No-Spend Challenge? We’ll Give You 3!

A no-spend challenge can be a lifesaver for your wallet!

Curious about a no-spend challenge but aren’t even sure where to begin? Taking on challenges like these is a fantastic way to develop better routines, especially when it comes to your financial habits.

A no-spend challenge, in particular, is an effective way to prevent all that impulse buying and even reset your finances entirely.

Whether you’re trying to save more in retirement, become debt-free, or achieve any other financial goal, you have two options: reduce your expenses or boost your income. Decreasing your spending involves selling a vehicle or maybe even moving into a smaller home.

But you can also make a few minor changes that will add up over time. A no-spend challenge is a surprisingly exciting option if you can’t make significant changes but want to reduce your spending.

That’s why we’ve decided to go into greater detail and define a no-spending challenge and how to do one, and we’ll even give you some tips on how to succeed. Ready to get started? Continue reading to learn more!

No-Spend Challenge
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What exactly IS a no-spend challenge?

Essentially, a no-spend challenge is a period of time, like a month, where you try to not spend any money on non-essentials. You can spend your cash based on your budget list but anything else MUST be avoided. In other words, during a no-spend challenge… you DON’T SPEND!

This implies you keep your money where it should be, like a bank account. According to research, 80% of those living in America have a total of $14 trillion in debt, with a mortgage being the biggest deficit of all. And that’s not even the worst part.

The sad truth is that only 1 in 3 Americans have a written budget. So, if you’re having a tough time saving your hard-earned money, a no-spend month can be a fantastic way to do so.

Why should YOU try a no-spend challenge?

It’ll speed up your financial plans

The most important reason why everyone should start this kind of challenge is to achieve financial goals. With the excess money you save during these periods, you can reinvest to achieve them faster.

It can help you declutter

During the challenge, you aim to decrease buying, and you use the things you already have. This will help you declutter, use the clothes you barely ever use, and you’ll stop contributing to waste. During this challenge, you’ll essentially learn to value things you already have.

It can end your bad habits

A no-spend challenge will help you get rid of some of your bad spending habits. Right now, you’re probably spending money on anything you see as something new and exciting.

But this new routine will force you to think 10 times before buying something, and you’ll control your urge to spend on something useless. By constantly saying NO to things, you’re teaching your mind to understand the distinction between needs and wants.

Repeat this process a few times if you must, and \we’re sure that every time you see a new clothing line, you won’t be so easily tempted anymore to waste your hard-earned cash. Once the challenge is over, remember to treat yourself… just don’t overdo it!

How EXACTLY does a no-spend challenge work?

As we mentioned earlier, a no-spend challenge is when you don’t spend any extra money for a specific period of time and set some boundaries when it comes to spending rules.

Not using your credit or debit card is one of them. But it all comes down to only spending your money on essential items and not spending a single dime on wants. Here are a few tips to get you started:

Budgeting income expenses

Don’t confuse this period with no spending AT ALL. So, to have a successful no-spend challenge, you need to create a plan of action… and stick to it. Create a budget using a no-nonsense budget planner.

Once you’ve written down your expenses, toss out ALL the wants. And then, if possible, try minimizing some of those needs. Once you do that, begin saving money and spend as little as you can!

A few things on your “Needs” list:

-Rent/Mortgage
-Groceries
-Insurance
-Bills

A few things on your “Wants” list:

-Vacations
-Clothes shopping
-Hair services
-Dinners
-Fun activities
-Drinks

No-Spend Challenge
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How should you prepare for a no-spend challenge?

Mentally preparing yourself before beginning your challenge is crucial for this to work. We definitely don’t recommend doing this without planning beforehand. Here are 6 tips to get you started:

Speak to your family about your plans

You should discuss it with your family, and only once they understand what you’re up to should you go ahead with this challenge. You might be the sole earner of your family, but because of your actions, the rest of your household might face some issues.

So, the best thing to do is to get everyone on the same page. Who knows? They might even support and motivate you if you’re on the verge of giving up.

Plan for unforeseen events

Be sure to have some money set aside in an emergency fund at all times. We always recommend saving and having a little extra set aside for “just in case.”

Your main goal here is obviously NOT to spend. But if you’re stuck in a rut where the only choice you have is to spend, that emergency fund will come in handy. So be sure to include this category to your budget planner!

Plan your meals

Creating a meal plan can end up saving you a ton of extra money. So whenever you’re about to begin a no-spend challenge, we recommend you start meal planning. It’s a wonderful way to cut down on costs by buying strictly what you need for that particular meal.

At the same time, let’s be honest: Meal planning takes time, and you may not have the time to devote to meal planning.

So maybe a $5 Meal Plans Service is the right way to go. For just $5 a month, you’ll get a grocery list and a tasty meal plan sent to you weekly. This way, you can cook the most delicious meals while working on something else.

Don’t feel guilty

Feeling guilty is common but won’t do you any good. For instance, what do you do if your close friends want to meet for lunch during your no-spend period?

You go for that meal, but try spending wisely and extend your no-spend period by a day. Again, this process isn’t about strict rules you MUST FOLLOW. It’s simply to teach you the value of money so that you spend it WISELY!

No-Spend Challenge
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Start a side hustle

How can a small job help you in this no-spend challenge? So, since you’re not spending money because naturally, you’ll have some extra time that you usually spend on your wants, additional energy can be used to earn some extra cash.

Rather than slouching around all day, why not start a part-time job or small business? Now, we understand that it’ll take time to actually make any profits, but slow growth is better than no growth, right?

Begin thinking about a few simple issues in your daily life, try formulating a business around them, and don’t give up. If starting a new business is hard for you, freelancing is another fantastic way to go.

So what do you think? Have you ever tried a no-spend challenge? If so, be sure to share your experiences with us in the comments section below.

And if you liked this article, we also think you’d enjoy: 4 Reasons Why the Spaving Trend Is a HUGE Mistake

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