How to Run a No-Spend November (or Any Month) Challenge

Do one thing: If you take on a no-spend challenge, decide ahead of time where to stash the cash you could potentially save. One idea is to move the money into a separate savings account.

Ready, Set, Stop Spending

Maybe you are saving to buy a house. Or perhaps you want to pay down some debt and have a little more financial breathing room. Whatever your motivation, launching a no-spend challenge could be just the thing to help reset your buying habits this month or even in the new year. 

Now we’re not suggesting you need to quash your spending on necessities — trips to the grocery store, those school trips for the kids are all still sanctioned. It’s those other expenses (the ones you know you really don’t need, even as you’re tapping your card on the kiosk) that are in play.  

What’s a No-Spend Challenge?

Much like it sounds, a no-spend challenge is when you:

• Pay only for essentials and monthly bills.
• Don’t allow yourself to buy non-essentials, such as concert tickets, makeup, the latest vinyl album, or book club recommendations.    

Reframe

Spending Delay. Eric Maldonado, CFP, MBA, owner of Aquila Wealth Advisors, LLC, says one way to succeed with this type of challenge is to reframe it for yourself. “Don’t think of it as no-spending, rather think of it as a spending pause or a spending delay,” he says.

Turn it Into a Game

For that next big purchase, see how long you can delay spending money on it.

• Need a new propane BBQ grill? See how long you can last with the old one.
• Want a new king-size mattress? Try delaying till the following credit card payment cycle.
• Eyeing a new jacket? Try delaying the spend till next month. 

Tips for Your No-Spend Challenge

To successfully run a no‑spend challenge that can potentially offer a lasting impact on your spending habits, consider these additional tips and strategies:  

Clearly Define the Rules

Before you launch your challenge:

• Define exactly what “no‑spend” means to you.

For example, you have to eat and pay your debts, of course, so perhaps you would set a rule that you will only spend money on essentials such as:

• Groceries that are on your list (no impulse buys)
• Utilities
• Transportation to and from work or school
• Other monthly needs, such as rent and student loans. 

Set a Time Period

You can potentially be more successful in a challenge when you set a:

• Specific time frame, such as one month or four weeks.
• It’s also a good idea to plan for what happens after your initial challenge.
• If you are successful and save a tidy sum, consider using the challenge to identify non‑essential habitual spending that you may be able to let go of moving forward.

Track Spending Daily

Just as you might do on a diet, when you would keep a food journal, it’s a good idea to:

• Keep a record of your spending in a notebook
• Use a budgeting app
• Write on a calendar on your fridge

Invisible Expenses Become Visible

Doing this helps to make the invisible more visible, because one reason some people tend to overspend is because of a lack of awareness. In other words, not everyone realizes they pay so much for take-out until they write down everything they buy for a week. 

Move Your Money

If your no-spend challenge is successful, you should have some extra cash in your bank account at the end of the time period you put in place.

Make sure that you redirect the money you save to:

• Emergency fund
• Debt repayment
• Separate savings account to make the benefit of the money more tangible

Review Lessons Learned

After the end of the challenge, make sure to review what you learned by asking yourself some key questions: 

• Which purchases did you really miss? 
• Which ones didn’t sting as much as you thought they would? 
• How did you overcome the desire to buy something? 
• What, if any, swaps did you make to compensate for not spending?

Ready to Rinse and Repeat?

If this type of spending challenge works for you, it may be time to extend the practice for a longer time period.

• You could consider repeating the challenge periodically
• Try a no‑spend weekend once a month to keep the mindset fresh, instead of it being a one-and-done deal.
• Sometimes, you may be surprised at how long you can postpone a purchase that once felt like an urgent need, Maldonado says. “Now it’s an afterthought. You forgot you even needed it. You realize you don’t even want that item anymore.” 

Spending Challenges Aren’t for Everyone

While some people thrive under the pressure of not having exactly what they think they need exactly when they think they need it, not everyone is cut out for such stress. Lisa Eaton with Firm Footing Financial Planning says no-spend initiatives are an idea that works really well for some people, but should be avoided by others. A spending reset may not work for people who have difficulty examining the hows and whys of their overspending, she explains. 

“Spending can be very emotional, and restricting spending can be like being on a strict diet — shame and a sense of failure can result from not being perfect,” Eaton says. “Anyone who tries a spending reset needs to be very clear about this as a learning experience rather than a success or failure experience.”

With reporting by Casandra Andrews