In today’s economy, we’re always looking for ways to save money. But the allure of a new gadget, trendy clothes, or the latest restaurant often leads to impulse spending. Add in that iced latte here, that delivery through Uber Eats, and another impulsive online order, and expenses add up over time.
For those looking to cut back on wasteful spending and be more prudent with their finances, the solution to getting control over your spending may be to set aside no-spending months.
What is the No Waste Challenge?
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of No-waste challenge is a personal finance exercise where individuals commit to not spending money on non-essential items for a period of time. This can involve cutting out subscription services, cutting out drinking nights, cutting out online shopping, refraining from making large impulse purchases, and more, to see how much they can save in a month. The challenge encourages participants to evaluate their spending habits, identify unnecessary expenses, and redirect their financial focus towards saving and reducing debt.
This expense should distinguish between needs and wants, such as food, transportation, housing, basic bills, medical and mental health expenses.
Preparing for the No Waste Challenge
When starting a no-money-saving month, it’s important to prepare properly to make the most of the experience.
He is a financial expert, A modest feministaKara Stevens of xo says a compelling “why” will motivate you to endure the ups and downs of a challenge, especially if it’s your first time. “Think clearly about the goal and outcome of the challenge. Do you want to be grateful for what you have? Do you want to save some money?” she tells xoNecole. “Know what your ‘post-spend challenge’ sustainability plan will be, because we hope it will change the way you think about your habits and spending and help you find ways to make it a part of your post-challenge life.”
One of the latest trends in anti-spending challenges is combating “revenge spending.” This spending habit, triggered by the pandemic and “life is short” reality, has led many to try to make up for lost time and missed experiences, leading to reckless financial decisions that could jeopardize their future stability.
Because of this, Steven advises us to reframe how we think about revenge spending so as not to jeopardize our financial future.
“Let’s shift the way we think about revenge spending and think about how we can live our best life but do so responsibly,” she says. “How can we make revenge spending work within our budget? How can we erase the idea of revenge spending from our vocabulary and just live well and spend money with a plan that doesn’t detract from our future financial goals?”
The benefits of a no-spend month
Participating in No Spend Month has several benefits, one of which is the self-awareness and gratitude that comes with not wasting money. Non-essential purchases“It makes you more financially self-aware because you’re only thinking about what’s essential for you,” Stevens says. “It makes you more efficient with your resources because you’re forced to use what you have at home instead of going out and shopping.”
People who take part in this challenge often become more intentional about their purchases, distinguishing between what they really need and what they don’t need. The money saved during this time can be used to pay off debt, build an emergency fund, or put toward savings.
Because of the challenge’s rigor, Stevens says it’s important to have a sustainable framework for sticking with the no-spending challenge to ensure you don’t fall back into old habits. “It’s like a ‘yo-yo diet,'” she explains. “If you’re very strict for a period of time, but don’t create any habit or mindset changes to keep it going, ironically you can end up resorting to revenge spending.”
Things to keep in mind
While it may seem like just another financial trend, participating in a no-money-saving month can provide valuable data not only about how much money you’re spending, but also about your attitude and relationship to money. You can observe how your feelings about money change and identify areas for improvement. Or you could start a savings fund, where you set aside money for a big purchase or personal experience.
Ultimately, spending money isn’t bad, but it’s important to spend it responsibly to ensure financial stability and success in the long run.
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Feature image: Evgeniia Siiankovskaia/Getty Images
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