The less you spend, the more yousave.
It sounds simple in theory, but in practice, its much more complicated.
We treat spending as a pastime when were bored, dropping hundreds with a few taps on our phone.
Sometimes the best way to shake up our shopping habits is to go on a spending freeze.
A no-spend challenge can help you reset your spending habits and pad your savings.
Its kind of like a crash diet, but in a good way!
Sound like its easier said than done?
Some of our favorite ways to make quick cash can help you get ahead.
And that way you might watch your savings grow even once your no-spend challenge is over.
What Is a No-Spend Challenge?
Despite the name, a no-spend challenge doesnt mean you sit on your hands and spend no money whatsoever.
The basic premise of a no-spend challenge is to cut out non-essential spending for a certain amount of time.
It could be for a week, a month or even an entire year.
The purpose is to greatly limit your cash outflow so you could watch your savings build up.
So groceries, yes.
Candy bar in the checkout line, no.
Also, no new iPhone, even if youve been dreaming about an upgrade.
No new shoes, even if theyre on a huge sale.
This is not the time to make excuses to buy stuff you dont really need.
The goal of this challenge isnt to make life harder on yourself by cutting out spending on essential expenses.
You could use it to pay down debt.
Ideally, your no-spend period will help break poor spending habits.
But be careful not to deprive yourself so much that you binge spend once your challenge ends.
These steps will help you halt spending unnecessary money.
However, it’s possible for you to choose to do your no-spend challenge any time of the year.
Pick a time when you dont anticipate needing to do a lot of shopping.
You might want to avoid doing a no-spend challenge during major holidays.
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2.
Decide What Your No-Spend Challenge Will Look Like
There isnt just one way to do a no-spend challenge.
Gear your challenge to what works best for you.
This is probably what comes to mind when most people think of a no-spend challenge.
you’re able to start small with five days or try something more challenging, like 15 days.
The upside to this approach is that you dont have to ban spending for a long stretch of time.
Just be careful not to overspend on the days that arent no-spend days.
You know your shopping weaknesses.
Maybe its buying new clothes, ordering take-out too often or overspending on Amazon.
Try going 90 days or maybe even six months without indulging your vices.
(And dont pick up any other bad spending habits in its place.)
Its easy to fall into overspending during special occasions.
Try prohibiting spending around holidays, birthdays or other celebrations.
Challenge yourself to celebrate in new ways or set new traditions.
You could commit to a year of DIY presents.
Or look through your belongings to find something you’re free to regift.
Volunteer with friends and family rather than exchanging presents.
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3.
Transfer that amount into your savings account.
Switching up your shopping habits will likely affect the people you live with.
If you better wrangle your budget, it may be time to consider a savings challenge.
Plan Ahead
Some advanced planning can help you avoid spending money during your no-spend challenge.
You might want to stock up on food so you dont have to step foot in a grocery store.
Another smart tip is to plan meals.
Meal prep will help you avoid the temptation to order takeout after a long day at work.
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Continue with your challenge.
Dont let a slip up be an excuse to stop your savings progress.
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Tips to Avoid Spending Money During Your No-Spend Challenge
They call it a challenge for a reason.
Heres some helpful advice to get you through your no-spend challenge.
Find Free Things
Check Craigslist for items posted for free.
Join your localBuy Nothing group, where community members offer up items they no longer want.
Ask your local librarian aboutwhat your library loans out besides books and DVDs.
It doesnt have to cost money to have fun.
Shop at Home
Take inventory of stuff you already have at home but have long ignored.
you’re able to probably make a couple meals out of the food in your pantry and freezer.
Laying out all the shoes you own may help you realize you actually dont need to buy another pair.
You might even discover you have unopened makeup or clothes with the tags still on them.
Swap, not Shop
Exchange goods and services with neighbors, friends and family without exchanging money.
Organize a clothing swap or exchange kids toys.
Volunteer to babysit your neighbors kids in exchange for them cutting your lawn.
Avoid Temptation
Leave your credit cards at home.
Delete those sales promotion emails from your favorite stores.
Dont tag along with a friend to window shop.
Make it easier on yourself by not putting yourself in situations where youd be tempted to buy something.
After the challenge is over, review your list.
So we looked into it.
What we found aresimple, millionaire-approved tipsthat anyone can use to manage their money.
Nicole Dow is a former senior writer at The Penny Hoarder.
Deputy editor Tiffany Wendeln Connors updated this post.
