9 Signs To Tell If a No-Spend Month Is Right For You
Written by
Cindy Lamothe
Edited by
Amber Barkley
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At the beginning of the year, when everyone is broke from the holidays, you’ve likely heard of people taking a “no-spend” challenge — a money-saving method where you make it a point to quit spending money on nonessential expenses. Some people do this for a certain period of time, like a given month.
Here’s how to tell if a no-spend month is right for you. Plus, learn about the mistakes you’ll want to avoid if you accept this challenge.
You Feel Financial Stress Despite a Steady Income
According to Max Avery, a chief business development officer at Syndicately, if you find yourself worrying about money even though you have a stable income, it may indicate a disconnect between spending and saving. In this case, he said a no-spend month can help you identify unnecessary expenses and give you peace of mind by showing how much you can save with minimal lifestyle adjustments.
“For instance, you may realize that eating out every day is not worth the money when you can cook at home and still enjoy delicious meals,” he explained.
You Rely on Credit Cards To Cover Expenses
“I would point out that constantly relying on credit cards to cover expenses may be a sign of overspending,” said Avery.
He noted it’s important to remember that using credit comes with interest and can quickly add up, leaving you with debt and financial stress. “You may realize during a no-spend month how much money you save by not using your credit cards and can start implementing better budgeting habits.”
You Recently Experienced a Financial Setback
“I suggest spending no money at all for a month if you’ve faced unexpected expenses like medical bills or car repairs,” said Avery.
He explained that redirecting all non-essential spending to savings or debt repayment can alleviate financial strain. “The best way is to create a budget and plan ahead for any future emergencies. A no-spend month can give you a jump start on this habit and help you get back on track financially.”
You Have Little to No Savings
If you find yourself constantly living paycheck to paycheck and struggling to save any money, Patrick McDermott, executive vice president of Max Cash, said a no-spend month might be the perfect solution for you.
“It forces you to evaluate your spending habits and cut out unnecessary expenses, allowing you to build up your savings and improve your financial stability,” he explained.
You Have Large Amounts of Debt
Similar to having little savings, McDermott said if you are carrying a significant amount of debt, a no-spend month can help you pay it off faster. “By eliminating unnecessary expenses, you can put that money towards paying down your debt and freeing yourself from interest payments.”
You Often Make Impulse Purchases
Impulse buying is one of the main culprits behind overspending, said McDermott. “If you frequently find yourself making impulsive purchases, a no-spend month can help break that habit and make you more mindful of your spending.”
By setting strict rules for what you can and cannot buy, he said, you will be forced to think twice before making any unnecessary purchases.
You Want To Save Up for a Big Goal
Whether it’s a vacation, a down payment on a house or starting your own business, McDermott explained that a no-spend month can be an effective way to save up for a big goal.
“By cutting out non-essential expenses, you will have more money to put towards your savings goals and reach them faster,” he explained.
This can be even more effective if you store your savings in the right account. Look to a high-yield savings account so your money will grow faster.
You’re Looking To Declutter and Simplify Your Life
A no-spend month can also have non-financial benefits, said McDermott. “By limiting your spending, you will likely start to appreciate the things you already have and find ways to repurpose or make use of them instead of constantly buying new items.”
He added this can help you declutter your space and live a more minimalist lifestyle.
You Want To Challenge Yourself
“If you’re someone who loves a good challenge, a no-spend month can be an exciting way to test your self-discipline and see how much money you can save in one month,” McDermott said. “It’s not easy, but it can be very rewarding when you successfully complete the challenge.”
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