Most of you know how it feels to need a little financial recovery. Is your bank account busted from cyber week deals and holiday shopping? Maybe you went extra hard on luxury groceries and alcohol to make things memorable during such a turbulent year. Or perhaps you had a life emergency that drained your savings. Either way, I know how it feels to need a financial reset. That’s why I’m going to try a no-spend month, and you should, too! Not only will it help us catch up on bills, but it could also be the start of new, helpful money habits.
What’s a no-spend month?
A no-spend month is almost precisely what it sounds like: You plan on living off of what you have and not spending anything extra. Of course, you can’t spend zero dollars in a month because there are still necessities such as food, wifi, heat, and electricity. But the goal is to stop any unnecessary spending for at least a month. For me, that means deleting my DoorDash and Uber Eats apps to avoid buying late-night snacks and desserts. Plus, my real weakness is mindless scrolling on Amazon and clothing store websites.
Why this challenge?
It can feel like a lot of pressure to commit to a no-spend challenge, but it could be worth it. For one, it allows you to get creative and find new ways to have fun instead of meeting for drinks or going to the movies—not to mention the innovative solutions you’ll find for the food in your pantry once going out to eat is off the table. A no-spend challenge also allows you to take a hard look at your budgeting to realize what you absolutely need and what you tend to spend on that isn’t necessary.
It’s tough for us to get out of debt when we keep making impulse purchases. If you’re serious about getting out of debt, it’s crucial that you avoid any unnecessary shopping until your bills are paid off. Sure, it might be hard at first, but you should be able to make it through January without dropping another dime on consumer goods.
You can start to save more money in the long term by eliminating or cutting down on bad spending habits. Of course, it’s alright to splurge every now and then, but you shouldn’t spend constantly and uncontrollably. Once the challenge is over, you may have a better idea of how you should handle your finances going forward.
This 2021 post has been revamped and updated for accuracy and comprehensiveness.
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January 21, 2021 at 9:36 pm
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