How to do the no-spend challenge: your complete guide

Are you looking to reign in your spending habits? Get a better handle on where your money goes each month? Supercharge your savings goals? A no-spend challenge might be right up your alley. The idea is simple: choose a timeframe (such as one month) and commit to cutting all non-essential expenses. At the end of the challenge, you’ll have a better sense of your spending patterns, ideas for cutting back in the future, and extra money you could put toward savings and investments for the future.   

Imagine spending an entire month without splurging on coffee runs, new clothes, or dining out. If that sounds daunting, well, that’s why it’s called a challenge. But if you also imagine the benefits of saving up money and developing better money-management habits, you might decide you’re up for an exciting financial adventure. 

What is a no-spend challenge?

A no-spend challenge is exactly what it sounds like: an effort to abstain from spending money on discretionary expenses for a set period. While you continue to pay for necessary expenses like rent, groceries, and utilities, you cut out all extras. This includes things like restaurant meals, coffee shop drinks, alcohol, clothing, and entertainment.

The beauty of the no-spend challenge lies in its flexibility. You can tailor the rules to fit your needs and goals, making it as strict or lenient as you want. The time frame is also up to you. Many people decide to try a no-spend month, but you could also go for a shorter duration. Whether you opt for a weekend challenge or commit to a full month, you can enjoy the benefits of a no-spend challenge.

Benefits of a no-spend challenge

Saving money

By cutting out all discretionary spending, you’ll wind up saving money during your no-spend challenge. There are lots of things you can you do with that extra cash, such as:

• Build up your emergency fund

• Save for a specific financial goal 

• Work on paying off your debt

• Add to your retirement fund 

• Learn to start investing 

Improving financial awareness

The no-spend challenge forces you to pay close attention to how you spend your money. You’ll need to track your spending and make thoughtful decisions about each purchase. You’ll gain a clearer picture of where your money is going and increase your overall financial awareness. That insight can help you do things like:

• Develop a more effective budget

• Create a long-term financial plan

• Clearly understand needs vs. wants

• Find practical ways to save money

• Increase your financial stability 

Developing better spending and saving habits

When you commit to a no-spend challenge, the skills you develop can lead to lasting changes in your spending behavior and mindset. By the end of the challenge, you may find yourself naturally making more mindful financial decisions. That can leave you better equipped to do things like:

• Stop making impulse purchases

• Avoid falling into lifestyle creep

• Overcome barriers to saving money

• Start making your money work for you

How to start a no-spend challenge

Set clear goals

Begin by defining specific financial goals for your challenge. Maybe it’s something relatively small, like saving up for a vacation or new phone. Or perhaps you want to kick-start savings for something larger, like a downpayment on a house, hitting your emergency fund target, or creating a sizable nest egg. No matter what your goal, having a clear objective will keep you motivated. Write down your goals and place reminders in visible areas to keep them top of mind.

Choose a timeline

Choose a reasonable duration for your challenge based on your individual circumstances. You might start with a weekend to test the waters or go all in with no-spend month. Some people even stretch out their no-spend challenge to a season or even a year for a more extended financial detox. If you’ve never tried a money-saving challenge, you might want to start with a shorter time frame. You can always build on your initial success by doing a longer no-spend challenge after your first experience. 

Establish spending rules

Set clear rules for what counts as non-essential spending. Needs and wants are very personal; what counts as a nice-to-have for one person may be a truly essential expense for someone else. Be flexible and cater these rules to your personal preferences and needs. Also take into account any exceptions you might want to make for your no-spend challenge. For example, if a family member’s birthday falls within your no-spend month, you might decide that it’s okay to allow discretionary spending for a gift or celebration in that one instance. 

Plan ahead

Planning is crucial for the success of your no-spend challenge. Before you dive in, review your spending over the last six months and make a list of all your discretionary expenses. If you have automatic payments set up for non-essentials, such as streaming services, remember to cancel them. Identify your most common types of discretionary spending and plan alternatives. For instance, you might want to start meal planning so you’re not tempted to go out to eat. Research free entertainment options, like community events or library streaming apps, to replace your usual entertainment choices. 

Track your progress

Regular check-ins help you stay on track throughout your no-spend challenge. Use apps or spreadsheets to monitor your spending and make adjustments if you realize you’re making non-essential purchases. You might want to check off on a calendar each day you stick to your plan. It can also be helpful to keep track of how much money you’re saving; consider depositing your saved money into a savings account to better track your savings and avoid the temptation to start spending. 

Stay motivated

Maintaining motivation throughout a no-spend challenge can be tough. Set smaller milestones, such as making it through one day or avoiding a specific spending temptation, and celebrate those achievements to keep your spirits high. Finding an accountability partner or joining a community of other challenge participants can also provide much-needed support. Loud budgeting, in which you publicly share your money-management plans with the people in your life, might help bolster your motivation and accountability. 

The no-spend challenge: kick-start better financial habits

The no-spend challenge is an opportunity to hit the reset button on your finances, save money, and reassess how you spend. By abstaining from non-essential spending and focusing on your financial goals, you can save money, improve financial awareness, and develop better spending habits that can stick with you for the long haul. Ready to take charge of your financial future? Start your own no-spend challenge today, set a start date, and begin preparing for a more financially secure life.

No-spend challenge FAQs

What is a no-spend challenge?

A no-spend challenge involves abstaining from non-essential spending for a set period while continuing to pay for necessities like rent, groceries, and utilities.

What can you buy in a no-spend month?

During a no-spend month, you can purchase necessary items such as groceries, utilities, and rent, but you avoid discretionary spending like eating out, buying coffee drinks, and entertainment.

How to do a no-buy challenge?

To do a no-buy challenge, choose a timeline, set specific rules for non-essential spending, plan ahead, track your progress, and stay motivated by setting clear financial goals and celebrating milestones. By following these steps and maintaining a disciplined approach, you can successfully complete a no-spend challenge and lay the groundwork for a healthier financial future. 

Investing made easy.

Start today with any dollar amount.

Get Started