3 Mistakes To Avoid When Doing a ‘No Spend’ Month, According to Kate Kaden
Written by
Angela Mae
Edited by
Jenna Klaverweiden
Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.
20 Years
Helping You Live Richer
Reviewed
by Experts
Trusted by
Millions of Readers
In a recent video, Kate Kaden, a YouTuber who makes content related to minimalism and frugal living, discussed the idea of “No Spend” January. This is a month-long challenge designed to eliminate spending on wants so you spend money only on the things you need.
No Spend January is geared toward those who are trying to save money and those who are trying to become more disciplined with their finances. But as with any new financial habit, it’s easy to make mistakes or even give up.
In the video, Kaden shared the top mistakes people make when doing this challenge and how to avoid them.
Also see nine expert money challenges that can help you kickstart a frugal 2025.
Not Seeing the Big Picture
“The first big mistake to avoid is not seeing the big picture,” Kaden said.
No Spend January is just the start of something bigger. Despite its name, the challenge is meant to last beyond one month. The point is to form long-term financial habits for the better. “A no-spend month is a challenge we use as a tool to set up our year for mindful spending and saving,” Kaden explained.
She used an example of a boat with holes in it to illustrate this point.
“Imagine you are in a boat and every single thing you spend causes a hole in the boat, and the bigger the expense, the bigger the hole, and you’re trying to stay afloat,” she said. “How can we plug up the holes in the boat for the year to come?”
You can take it one step — or month — at a time. But the end goal is to look for holes in that metaphorical boat and make sure you don’t have so many financial “holes” that you sink. And that means viewing this challenge from a long-term perspective.
“If you keep doing things that are not leading to your ultimate vision, it’s going to be a lot harder to get there,” Kaden said.
Giving Up on the First Hard Day
“The second thing to avoid is to give up on your first hard day,” Kaden said.
It’s all too easy to give up when things get tough. Maybe you purchased something you didn’t really need. Or maybe you’re having a tough day at work that makes you want to splurge.
As Kaden pointed out, that’s life.
“You will have days that are way more challenging than others, but don’t quit on the first sign of trouble,” she said. “You have to stay open and realistic that something might get in your way.”
Challenges are even more likely to crop up the longer you stick with it. But that’s okay too. It doesn’t matter if you occasionally break the rules. What matters is getting back on track the next day and the next.
“If you fly off the rails for some unforeseen circumstances … adjust your rails,” Kaden said. “Isolate that incident and move on.”
This will let you learn from your mistake rather than let the whole challenge fall apart because of it. Remember, building better financial habits won’t happen overnight.
Going Back to Your Old Habits
“The third big mistake to avoid is reverting back to your old habits out of habit,” Kaden said.
Any kind of habit, good or bad, can be tough to break. Sometimes, you might think you’ve gotten past an old habit only for it to pop back up.
“We’re looking to create new habits to get somewhere new,” Kaden explained. “This is a challenge for a reason, and you still have to reel it in.”
According to the National Institutes of Health, becoming more aware of your unhealthy habits could help you break them. “Don’t go on autopilot,” Kaden said. “You have to be intentional and aware.” When you’re intentional with your spending and saving decisions, you can avoid reverting back to old habits and make more informed decisions.
If you do find yourself falling back on old spending habits, Kaden advised not beating yourself up over it. Instead, acknowledge it and keep moving forward.
If you’re struggling with old habits, Kaden also recommended reading the book “Atomic Habits: An Easy and Proven Way to Build Good Habits and Break Bad Ones” by James Clear.
More From GOBankingRates
