6 Steps to a Successful No Spend Challenge

Do you feel like you are constantly spending money? Are you cringing before you check your bank account balance? Do you need some extra cash but need help determining where to get it? If your answer is yes to any of these questions, maybe you should try a no spend challenge.

What is a no spend challenge? It is a commitment to only spend money on necessities for a certain amount of time to attain a goal.Necessities usually include things like:

• Your regular bills
• Transportation costs
• Food

Necessities usually don’t include things like:

• Eating out
• Online shopping
• Books
• Magazines
• Clothes
• Entertainment spending
• Getting hair and nails done
• Classes and courses
• Anything just because it’s on sale

Not spending money can be incredibly difficult if you don’t have a plan. If you want to try this type of challenge but are unsure if you can stick it out, here are six steps to help ensure your success.

STEP 1: KNOW YOUR WHY

Pulling off a no spend challenge can be very difficult for most people. To be successful, you will need a strong reason why you want to do this. Your why should probably be more than, “I’m doing this just to see if I can.” That might not be a good enough reason to motivate you throughout this challenge. Some reasons why you might want to start this challenge could be:

• To save money for a specific goal.
• Cutting expenses during a bad economy so you can live within your means.
• To save money to pay off debt.
• Getting your finances back on track. Put the brakes on overspending and get back in control of your money.

You will be more likely to achieve your goals if you write your “why” down. Then tell someone your plans so you are held accountable.

STEP 2: DEFINE THE RULES

A no spend challenge looks different to different people. How you do it is totally up to you. You make the rules. Here are some things to consider:

• Decide what you can and cannot buy.
• Decide on how long the challenge will last.
• Be clear on what your basic needs and necessities are. Do they only include the absolute basics? Is it okay to make purchases such as birthday presents?

STEP 3: PLAN AHEAD

Make sure you have a plan for certain situations, so you don’t end up giving in and spending money.

• Have a plan for entertainment. Make a list of free activities to do for fun and recreation.
• Have a plan for nourishment. Don’t get caught away from home without having something to eat. Bring a homemade lunch or snacks with you, so you aren’t tempted to eat out.
• Have a plan for shopping for necessities. Make a list of all the essential non-food items you need to buy. Plan out what you are going to eat for meals, so you can make a list of your grocery items based on your meal plan. Don’t go shopping on an empty stomach. Make online purchases and schedule a pickup when possible. All these tips will help ensure that you don’t get off track and make purchases you didn’t intend to make.

STEP 4: UNDERSTAND YOUR TRIGGERS AND WEAKNESSES

You know you best, and you know what you can handle. You may want to leave your credit card at home when you are out and about.  Eat before you leave home. And avoid impulse buying by staying away from places you might be tempted to spend money. This might include:

• Malls
• Starbucks
• Target
• Fast food restaurants
• Thrift stores
• Book stores
• Shopping channels
• Online shopping websites

STEP 5: KEEP YOUR BASIC NEEDS AND NECESSITIES DOWN TO A MINIMUM

It will defeat the purpose of this challenge if you overspend on your regular purchases. Try to cut expenses wherever you can. Here are some tips:

• Have a budget. Spend less than your budgeted amount if possible.
• Buy cheaper brands.
• Use pantry and freezer items.
• Limit traveling to save on gas.

STEP 6: BE RESOURCEFUL

Instead of buying items you need, try being creative and use what you have. It might not be exactly what you wanted, but it still might work. Here are some ideas:

• Make your own products. You can find directions on how to make many simple products online. As long as you have the ingredients (and it’s safe), you might be able to make a product that works just as well as what you can buy in a store.
• Shop your home. You may already have what you are looking for. Extra storage containers that have been hanging out in the basement? Lightbulbs in a kitchen cupboard that you forgot about? Look around, you may be surprised at all the things you already have in your home that you don’t have to spend more money on.
• Reuse and recycle. You may have items in your home that you can repurpose instead of buying new ones. Use your imagination and save money.
• Try making recipes from scratch. Instead of spending money on a ready-made version, try your hand at making it yourself. You can save money, have a delicious meal, and have the satisfaction of knowing you created it yourself.

Conclusion

Follow these steps and you will have a good chance at accomplishing the goal you set out to achieve in this no spend challenge. If you get derailed at some point, don’t abandon the challenge altogether. Keep on going and learn from your mistakes. Even if you slip up once or twice, you will probably be a lot better off than if you hadn’t started the challenge to begin with.