Get into the Frugal Habit with a Successful No-Spend Challenge

This website may earn commissions from purchases made through links in this post.

A no-spend challenge is a great way to get motivated to save and make you aware of your spending patterns while saving money at the same time.

woman reading book on her lunch break at a city table with a reusable coffee cup and apple

Get your spending back on track with a no-spend challenge.

Frugal living isn’t usually about spending nothing at all. 

In fact, sometimes it can be frugal to spend more money because buying a quality item that lasts offers better long-term savings than buying something cheap and disposable. 

But sometimes, when spending has increased, maybe even gotten a bit out of control, a no-spend challenge can help us reign in our spending and get on top of the bills. 

Disclaimer: This is general information only. In this blog, I share my savings and budget planning and what works for us. You should always consult a qualified financial expert when making money decisions to tailor plans to suit your circumstances.

What is a No-Spend Challenge?

A no-spend challenge is pretty much what it says on the label – a challenge where you commit to not spending money for a period of time, often one month.

It doesn’t mean spending zero money – we still have to pay the bills and eat. It’s about reducing the amount of discretionary spending to zero (or an amount you’ve decided on – your challenge, your rules!).

In a way, it’s quite revealing about our culture that we have to challenge ourselves not to spend money, so deeply ingrained is consumerism. 

Why Take on a Spend Nothing Challenge?

There are many benefits to doing a no-spend challenge. It can help you:

  • Evaluate your spending habits
  • Save money 
  • Pay off debt
  • Find creative ways to meet needs and wants 
  • Exercise our delayed gratification muscles
  • Reduce the waste we generate
  • Foster resourcefulness
  • Improves budgeting
  • Helps identify non-essential expenses
  • can help break the cycle of impulse spending

A no-spend challenge is about mindful and intentional spending and can transform your approach to money and stuff, especially if you use the challenge to find creative ways to meet your needs without spending money. 

Bartering, swapping, sharing, freecycling – the challenge is an opportunity to go beyond simply not spending and really stretch your skills.

How to Do a No-Spend Challenge

Not spending can be a shift in habits. Here are some tips to make a no-spend challenge successful.

Before You Begin, Agree on the Essentials

Even during a no-spend challenge, we’re all going to have some expenses that need paying. We still need to eat and pay the bills.

The idea is to cut all non-essential spending.

What counts as essential and non-essential is up to you – everyone’s circumstances are different. It helps to discuss (if relevant) and write down what is essential and what isn’t. That way, when expenses crop up, you can resist temptation. Or there are no arguments about what is essential and non-essential.

To give you some ideas, your essential spending may include:

  • Basic groceries
  • Petrol and transport
  • Health care and essential medication
  • Essential repairs
  • School/childcare essentials
  • Rent/mortgage
  • Bills due

What about subscriptions like Netflix?

If you can pause your subscriptions or temporarily cancel, it can save you money if you do so. It’s up to you, but the less you spend in your no-spend month, the more you save.

Put away the Credit Card and Pay Cash

Relying on willpower can let you down. Instead, set yourself up for success by removing easy access to credit and use cash for your no-spend challenge.

(I use a pre-paid debit card instead of cash – once the money runs out, it’s gone. And I have an app for mine to check the balance).

Writing a shopping list of basics, sticking to your list, and only taking cash so you can avoid temptation will help you stick to your challenge.

Look Out For Hidden Spending

We spend money All. The. Time, without even thinking about it. It’s what I call hidden spending.

This challenge can bring that hidden spending into the light.

Consider electricity.

Leaving the lights on when you’re not in a room doesn’t cost you any money today, but you’ll be paying for it once the bill arrives. You’re actually spending money by leaving the lights on; you just don’t have to pay it yet.

Now I’m not suggesting you should stop using electricity in your no-spend challenge.

But it’s a good time to look at ways to stop wasting electricity or to reduce your electricity consumption. Other hidden areas of spending include:

  • Taking unnecessary trips in the car. Can you batch your errands to reduce running costs? Or walk or ride?
  • Wasting food. Food waste means last week’s money in the bin and more spending next week.
  • Unnecessary bank fees (like foreign atm fees).
  • Wasting water.

Stay Accountable With an Accountability Buddy

Studies show that we are more likely to stick to our goals with an accountability partner – someone you can give progress reports to, who will cheer you on, and who will ‘talk you down’ when the temptation to spend strikes.

No-Spend Meal Planning and the Great Pantry Clear-Out

creative cooking from the pantry

When it comes to groceries, a no-spend challenge is a great time to cut out all non-essential items for a month.

For example, I would consider vegetables to be essential but ice cream, not so much.

If you want to really get the most bang for your buck, you could pair a no-spend challenge with a $ 5/$10/$20-a-day meal challenge.

YouTubers Frugal Fit Mom and See Mindy Mom both do extreme grocery challenges like eating for $2 a day if you’re looking for meal ideas. They are American, so if you’re Aussie like me, the ideas and budget will need adapting, but I’ve tried some of their meals, and they were really good. There are a tonne of videos and ideas for inspiration, and they will help you cut the groceries for your frugal challenge.

Your no-spend month (or whatever period you choose) is also a good time to clear out the freezer and pantry and use up what you already have on hand. This keeps the grocery budget low for that month and can reduce food waste.

Exploring Free Alternatives

If you’ve taken the plunge and cut media subscriptions, then what do you do for a month?

This is the time to explore free alternatives for entertainment. Some ideas include:

  • Free-to-air TV
  • YouTube
  • Picnics at the park or beach
  • Take the kids to the park
  • Visit a botanic garden
  • Go for a hike
  • Finishing that craft of DIY project (assuming you have all the stuff)
  • Visiting free local museums, concerts, events, galleries
  • Listen to free podcasts
  • Take a free online course
  • Visit the library for all sorts of free stuff.

You might also like:

Can you Borrow, Barter or Get it For Free?

When you think of an item you ‘need’, the first question to ask yourself is ‘Can I borrow it? Can I get it for free?’ How often do we buy something only to use it once and then place it in storage?

Or worse, throw it away.

“…only one per cent of the total North American materials flow ends up in, and is still being used within, products six months after their sale.”

[source footnote 44]

Borrowing, swapping, bartering or freecycling the goods that we need is one way to keep our spending down and curb clutter.

Refusing doesn’t mean going without. Borrowing is a good way to meet your needs without spending more money (and consuming more resources).

Keep a Wish List

If stuff pops up during your no-spend month that you really want, write it down on a wish list.

Writing it down has several benefits: It gives you a cooling-off period. It’s amazing how many “needs” seem superfluous once we’ve had time to think about it.

You don’t feel like you’re depriving yourself – you’re simply deferring a spending decision. You may later decide you don’t need it.

If you do really want that item, it gives you time to save for it and pay cash. It also gives you time to shop around for the best deal, wait for a sale or see if you can get it second-hand.

A no-spend challenge is a good first step to living frugally. It gets you in the mindset and habit of not spending money.

The savings you make by not spending can be put towards paying off debt or increasing your emergency fund. You can put the money towards your financial goals or towards your bills. Or the habit can allow you to move out of the work-to-shop cycle and live a more simple life.

Have you ever taken a no-spend challenge? How did it go?

Similar Posts

Leave a Reply

Your email address will not be published. Required fields are marked *

4 Comments

  1. Hi, I have JUST found your site, and my goodness – I LOVE it!! I wish I had come across your page sooner!
    I have decided to start the challenge this week. I think I might struggle alot though lasting a month as I have a habit of spending all the ‘left over’ money after bills and essentials are paid and bought. I really want to kick this habit and I think your site as well as my hubby and I wanting to save for a house deposit will keep me focused :)

    1. Melissa Goodwin says:

      Hi Amy, welcome. Thanks for leaving a comment.

      Good luck with your no spend challenge. A few days and it will be a habit :). Having a goal is a great way to stay focused. Good luck :).

  2. Carryn McLean says:

    I have decided to try the no spend challenge in January. I have major works required to be done before winter so apart from bills, mortgage, grocery, Petrol and medical expenses I shall be saving money on what I would spend on a whim. I have set up a budget so hopefully I can keep to the one month which may go into two or three. Thank you for your great tips.