How to Prepare for a No Spend January - Money Tip Tuesday

What resolutions have you made this year? Did you decide it’s time to start making some financial changes?

Financial resolutions aren’t for the faint of heart, and if you’re gearing up to make this year one of your best for financial discipline then there’s nothing better than a no-spend challenge to put yourself to the test.

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Transcript:

Welcome to Money Tip Tuesday from the Making Money Personal podcast.  

The New Year has finally come and if you’re like many other people you’re likely sitting down to plan out some resolutions. When it comes to resolutions, people often choose to start a new diet or exercise routine while others set financial goals.   

One goal you may want to consider participating in is a no-spend challenge.   

A no spend challenge can last for a week, a month or even a year!  

The purpose of a no spend challenge is to cut back on frivolous spending and have a better grasp of your financial habits.   

How does a no spend challenge truly work?  

Although the name suggests it, it’s impossible to not spend any money for a whole month.   

You need to make sure you have your four walls—food, utilities, shelter, and transportation—covered.   

Note: When we say food we mean groceries, not restaurants. Transportation refers to gas, public transportation, or anything else that is necessary to get you where you need to go   

Once the four walls are taken care of, you are not allowed to spend money on anything else.   

When’s the best time to start a no spend challenge?  

This month, January, seems like the best month to start a no spend week or month for a few reasons:   

1. January follows the holiday shopping season and on average, Americans spend approximately $997.73 on holiday shopping each year. Starting a no spend challenge in January is a great way to let your bank accounts and credit cards breathe a bit. 
    
2. You might have received some restaurant or store gift cards over the holiday season that you can use during the challenge. This is essentially free money since it won’t be coming out of your accounts.  
   
   
3. No spend challenges are easier to participate in when the weather is cold or snowy since poor weather conditions typically mean staying indoors, thus you are less tempted to go out and spend money.  

How Do You Prepare?  

Before you begin this challenge, it’s important to plan out all your meals, snacks, desserts, etc. to ensure they fit into your grocery budget for the duration of the challenge. Be resourceful and take inventory of your pantry, freezer, and fridge, that way you know exactly what you have. 

To help yourself with online shopping, delete all shopping apps (Target, Amazon, Walmart, etc.) from your mobile devices. It may also be helpful to set up a filter on your email that will send marketing emails to a hidden email folder, that way you aren’t tempted to shop those deals.

One of the benefits of a no spend challenge is the money you save. Write down your plan for those saved funds. This will serve as a reminder and a motivator of your goals if you struggle during the challenge.  

Obviously, if an emergency arises, that does not break the no spend challenge.   

A no spend challenge may seem a bit daunting if this is a new idea for you, but once completed it is very rewarding.   

If at first you don’t succeed, don’t be too hard on yourself and don’t be afraid to try again! We’re rooting for you. 

 

If there are any other tips or topics you would like us to cover, let us know at tcupodcast@trianglecu.org. Like and follow our Making Money Personal FB and IG page and look for our sponsor, Triangle Credit Union on social media to share your thoughts.  

Thanks for listening to today’s Money Tip Tuesday and be sure to check out our other tips and episodes on the Making Money Personal podcast.  

Have a great day!