Tips to help you curb spending and save more.

Have you heard about no-spend challenges? They’ve been trending on TikTok and capturing the interest of folks who want to curb spending and save more. In a no-spend challenge, you don’t cut your expenses to zero. Instead, the only thing you spend money on are the essentials. If you accept the no-spend challenge, here are tips to help you succeed.

Set a goal

How much do you want to save? Having a clearly defined goal will help keep you on track. Your target might be $1,500 for a new computer or $25,000 for a house down payment, paying off a credit card or maxing out your retirement savings.

Once you have a goal, set a timeline. Depending on the amount and your income, you may be able to reach your goal in a month. Large goals may take a year or longer.

Consider starting small

Limiting spending requires a big change in habits for many people. If you have a big savings goal that will take several months to achieve, you might ramp up your efforts by starting with a smaller goal first. For example, you might save $100 to go out for a nice dinner. The initial success can help establish new habits and put you on track for a larger goal.

Buy only essentials

When you do a no-spend challenge, you still spend money on essentials. Before you start your challenge, identify what’s essential and what falls into the “nice to have” category.

For most people, the essentials include:

• Food
• Housing—rent or mortgage
• Utilities
• Transportation—including gas, insurance, and maintenance
• Health insurance and medical costs
• Loan repayment(s)

Food is essential but use discretion. Use what’s in your pantry instead of going out. Before you shop, learn how to save money on groceries with these tips. Meal planning is a powerful tool that will help you stretch your dollars. For example, buy on-sale vegetables in bulk and use leftovers from a meal of roasted veggies to top a salad or make soup.

Limit your purchasing methods

When doing a no-spend challenge, many folks implement a “cash-only” policy and this can be very effective. Several studies have shown that when we pay in cash, we’re more conscious of our spending.

If you’re not comfortable carrying cash, you could opt for a debit card. Using a debit card helps keep spending in check because you can only spend what’s in your account. This is a big contrast to a credit card where you can spend up to your limit.

Resist online shopping

It’s so easy to make purchases with one-click shopping. If you find it difficult to curb online shopping, delete your credit card information from the retailers you regularly shop. If something does catch your eye, the act of typing in account information will slow you down. The friction of entering the numbers is your signal to ask, “Is this essential?” If it’s not, forego the purchase.

Another technique is to add the item to your wish list and reconsider the purchase in a week or a month. When you come back to the item later, you may find you no longer want it.

Plan to do other things

Lots of us like the activity of shopping. It’s fun to see the latest electronics and fashions. However, during a no-spend challenge staying out of the stores (in person and online) helps you avoid the temptation to buy.

Before you start a no-spend challenge, identify things you can do instead of shopping. Some alternative activities include purging your closet, selling items you no longer need, catching up with friends or going for walk.

Share your plan

Let family and friends know that you’re doing a no-spend challenge. Family members can help find ways to save money and friends will understand when you want to opt for low-cost or free activities.

Identify and share your emotions about shopping with those closest to you. Do you tend to shop when you’re bored? Or because you feel depressed? Maybe you treat spending as a reward. When you know what leads you to buy and communicate this with others, they can better support you in not spending.

If you slip, don’t give up

Changing spending habits isn’t easy for many folks. And, life often throws unexpected expenses our way. If you slip up and spend on non-essential items, acknowledge why it happened, resolve to do better, and move forward.

Watch your savings grow

Moving money to a designated account helps you track your progress. A money market account, high yield savings account, IRA and investments can all be used to help grow your savings.

 

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