Is It Possible To Win The No-Spend Challenge?

At this time, you may not want to give a toss to your financial concerns even if you run out of money every month and cannot work out where it is all gone. It raises an alarm bell when your money is not just serving you but a household. You can be fussy about tracking the account of each penny you spend, but when you are not in control of your finances, you cannot escape biting the bullet.

The no-spend challenge comes in handy to many of you to get a grip on your outgoings. It does not mean an absolute ban on your spending. It is rather a question of cutting back on your discretionary or inessential expenses to be able to retain some of your money at the end of the month.

1.  Set specific goals

As the cost of living is soaring, the pressure on your finances will continue to build on. While you will be paying towards essentials such as a mortgage, rent, and utility bills, you should also set a specific goal such as building an emergency cushion or stashing away for an occasion.

When you have defined goals, you will be able to keep motivated to stick to them. They bring transparency and clarity to your money-saving strategies. Experts suggest writing down your goals cutting out images from magazines, and adhering to a vision board will help you cut out all distractions.

When you are on the no-send challenge, you should focus on your saving goals rather than saying no to the coffee you buy on the way to work every morning. Shifting your focus from cutting out your favourites to what is important to you as of now will help you stay positive and motivated. You will automatically whittle down on your frivolous purchases when you honestly achieve your saving goals.

2.  Set your rules

The no-spend challenge is aimed at gaining control of your outgoings rather than rigid restrictions, so instead of sending no money at all for a full week, you should set rules to pare down your frivolous purchases. Identify your comfort zone, which, of course, cannot be the same in two different months because no amount of recurring expenses can be part of your budget in both months.

You can either pick a day in a week for no spending at all or you can choose to do it less frequently. You may have certain events that you would want to spend on, like taking your kids out on a picnic. It is completely up to you whether you want to go on the picnic with them or stay at home. The choice will be absolutely yours.

3.  Plan ahead

In order to make the no-spend challenge work for you, you will have to ensure that all your essentials are covered. It is vital not to be missing or running out of your essentials like toiletries or food you need. Before you head to your grocery store, you should carefully check what is already in the cellar, cabinets and refrigerator.

Make a list of items you need for the whole month, and make sure that they are covered under essentials. Having a list with you will help you avoid the temptation of buying things you do not need. Unsubscribe from temptations such as emails and newsletters. Make sure you delete and uninstall shopping apps to avoid buying things you do not need.

It is likely that you would be tempted to break your rule, but before that ask yourself if you actually need it and what will be the opportunity cost of it.

3.  A no-spend week does not mean no fun

A no-spend week is normally preferred when you are to tackle your debts. If you have loans for bad credit with no guarantor and no benefits, you will likely cut out all fun activities. However, it is not set in stone that you need to spend money to wind down.

Though debt settlement is crucial, banning all your discretionary expenses will make it harder for you to stick to the challenge. You will likely give up in the middle and then go on a spending free. Your no-spend week plan may involve a day out with your kids, free walking in a community garden, homemade picnics, strolling with friends, watching a movie or having a video call with someone. These options can help you save a lot of money and ensure timely payments of unsecured loans for bad credit.

4.  Keep a close watch on your progress

You will need to stay motivated to stick to your plan, and therefore, it is paramount to keep tabs on your progress. Get a calendar and mark the day as you go. Successful attempts will keep you going. Write down challenges in your diary and what you are learning along the way.

Not only will it reflect on your success but it will also help you better plan for coming days. The no-spend challenge is particularly useful to reflect your spending habits. You will easily compare how much you would spend especially when you were zonked and bored stiff.

It is still possible to slip into your older habits of buying things you do not need at all, but when you see the benefits from the no-spend week challenge, you will feel spurred on to stick to it.

To sum up

The no-spend challenge does not have to be intimidating because under no circumstances does it imply that you cannot have fun. The purpose of this challenge is to help you curb sending on inessential things and be in control of your finances.

If overspending results in debt problems, no-spend challenge weeks will certainly be fruitful. Once you come to grips with something, you will be able to make your money work for you. So, when are you going to start your no-spend week?