This month, my wife and I participated in our annual month-long spending freeze (No-Spend Month). You might be surprised to learn that my wife has been doing this for over ten years – long before she met me! She calls it “No-Spendtember.” I have since joined in the “fun” of participating in this annual financial cleanse. The rules for us are simple: We can only spend money on gas, groceries, and bills for the entire month of September.
We’ve been hearing more about no-spend months (or low-spend months) lately. Our favorite podcast, Young House Love Has a Podcast (on which I was interviewed in September of 2017), did a month-long shopping ban in May/June and saved several hundred dollars. They were inspired by a book about a year-long spending ban called “The Year of Less” by Cait Flanders.
Here’s how you can have your own successful no-spend month:
- Start by tracking your spending. The best way to establish the rules for your no-spend month is to track your current spending. This will also help you gauge your success because you will know how much you typically spend, which in turn, will allow you to see how much you saved! A great way to do this is to use a software program like Mint.com to see where your money is currently being spent. A bonus of using Mint is that you will get three months of spending history! It is important to have an awareness of where you are spending your money now so that you can see the true impact of any changes you make.
- What is your motivation? Examine why you want to do this… Are you interested in cutting back on the stuff coming into your life? Do you want to jumpstart savings to pay off debt or go on vacation? Do you just want to see if you can do it? Determining your “why” will help you get through during those days when you want to give up.
- Plan Ahead. You can’t plan for everything, so try not to stress yourself out here. It is important to look at your calendar and pick a month when sticking to your financial cleanse will be achievable. For example, if you participate in Christmas you may not want to pick December as your no-spend month. Also, try to anticipate as much as you can. For example, my niece’s birthday is in September, so we buy her gift in August since we know we will be giving her something on her birthday every year.
- Determine your rules. There isn’t a “no-spend month” law book… you can determine rules for yourself, so make it your own! Start by looking at your current spending and decide where you want to save. As I’ve mentioned, other than bills (i.e. mortgage payment, utilities, cell phone, etc.), my wife and I plan to spend nothing except on gas and groceries. YHL outlined their rules here. Cait Flanders determined she could spend money on other people, but only for things like birthdays.
- Say Yes! Be sure to outline areas where you can spend money so it’s not a month-long bummer. Maybe you determine for yourself that you don’t want to spend money out on special treats (frozen yogurt, baked goods from the bakery around the corner, ice cream at the mall), but you can spend money on ingredients to make cupcakes or ice cream. Maybe you can’t go out for drinks, but you can open a bottle of wine at home and invite your friends. Give yourself some room to get creative (while saving money).
- Your health is always a priority. Don’t ever jeopardize your health for a no-spend month by only eating bread for the month, or not going to the doctor if you need urgent medical attention. You will save a lot of money in the long-run if you take care of your health.
I feel it’s important to mention that, in some ways, a spending freeze goes against what Dr. Budgets money coaches teach our clients. We believe in spending money in the areas that are important to you. We are against crash budgeting and are all for spending money with intention. However, a no-spend month (or a low-spend month) can help jump-start savings, identify your spending triggers, and provide some clarity about your finances.
So, are you going to give it a try? What rules are you going to establish for yourself? Maybe you’ve already tried it out. If so, that’s great! How did you do? How much were you able to save? Where were your pitfalls? We’d love to hear about it in the comments section below! If you need a money coach to hold you accountable to your no-spend month, click here to schedule your complimentary consultation.