How To Do A No-Spend Challenge

Have you heard about a new trend called a no-spend challenge? This new financial trend is taking the country by storm and helping people to save hundreds of dollars by eliminating excess spending. If you love a challenge, especially if you need to tighten up your budget, this is the challenge for you and you can get your family and friends involved. If you feel like your spending is out of control or just want to be more intentional with your money, then you’ll love the no-spend challenge.

What Is A No Spend Challenge

A no-spend challenge is pretty simple, you only spend money on four financial walls: food, transportation, utilities, and insurance. Any other additional expenses that don’t fall under the four walls like Amazon purchases, going out to eat, or other non-essential purchases are out! You will be surprised how much money you will save and how small purchases add up over time. Some of the benefits of the no-spend challenge are awareness of your spending and the extra savings of money. 

How To Start A No-Spend Challenge

This challenge is easy to start, all you need is to create a monthly budget. If this is your first time creating a budget it might seem overwhelming, but take the time to be real with yourself and get an honest view of your financial outlook. The first step is to log on to your online bank account and review your expenses for the past 30 days. Start with your bare essentials like rent or mortgage, transportation, food, and utilities. These are the four walls that you need to survive and protect yourself from harm. Once you establish your baseline expenses then set aside a budget for miscellaneous expenses such as birthday gifts or a visit to urgent care. Any other luxuries like Amazon purchases, going to the movies, and going out to eat is off the table. 

Make A Budget 

If this is your first time making a budget, I highly recommend the EveryDollar app by RamseySolutions. The paid version of the app allows you to connect your bank account, making tracking your expenses quick and easy. This is a great time to end unnecessary Netflix, Amazon, or Disney+ subscriptions.

One way to help you evaluate if you should keep a subscription or not is to ask yourself if you’ve used the app on a daily basis. If you haven’t used the app recently, then it’s time to end your subscription and delete the app from your phone.

Stick To Your Budget

The hardest part of this challenge is staying on budget no matter what. You’ll notice that you will be tempted to grab a drink from Starbucks or grab lunch with friends or go to 7-ll for a quick treat for the kids. Those small expenses and purchases start to add up over time.

No Spending On Extras 

Expenses that are not planned like Amazon purchases, a Spring Break trip to Cancun, or Taylor Swift concert tickets (sorry T-Swift) are not allowed during this challenge. This even includes those little trips to Starbucks or a quick snack before heading to your next meeting.

Instead of mindlessly swiping your credit or debit card, use cash instead and track every expense in the Everydollar app or another financial tracking app. I was shocked when I added up my “extra” expenses. The things that I thought were essential like Target and Ulta runs, Amazon purchases, and trips to Starbucks ended up spending an extra $500 more than I had budgeted. That extra money could’ve gone into savings or towards paying off my debt. 

Clip Coupons To Save Money

Okay, so clipping coupons might seem dated, but you can use digital coupons to save money on items that you frequently purchase. If you shop at a store that has an app or rewards card make sure to look for digital coupons, weekly sales, and deals that can significantly reduce the cost of your bills. 

Get Creative With Food Budget

If you’re looking to save money on your food budget then check out stores like Aldi’s, Winco, or Food 4 Less.  Another cost-saving strategy is to have more plant-based meals on your menu.

Not only is this a healthier option but can save you money. I tried this strategy this week and didn’t purchase meat at all. My weekly grocery bill typically averages $78 when I purchase meat, but with no meat purchased, I cut down my bill by $25-$30! This is huge! Try this strategy instead and fill up your meals with vegetables, beans, and rice. 

Let Friends & Family Know That You Won’t Be Going Out This Month

So many of us are trying to keep up with the Jones’s and spending money on things that we simply can’t afford. This is the time, to be honest with your family and friends about your financial goals. You might have to miss flying out to your parents for the holidays because it’s not in the budget. This is only temporary and will set you up for financial freedom and security for your family. Be prepared for family members to think that you are losing your mind or trying to talk you out of your plans. Stay true to your goals and push through. This will keep you motivated to pay off your debt as fast as you can so you can enjoy that future trips debt free!

Use The Food In Your Pantry

Take a look at your cabinets and use what you already have. Challenge yourself to create your most creative recipes (just like Iron Chef). Have breakfast for dinner or try a crockpot recipe. You’ll not only use what you have but will save cash in the process. 

Doing this challenge will make you more aware of your spending and mindset on money. If you loved this article, then you’ll enjoy 7 Lessons I’ve Learned From My Mom.