When was the last time you took an honest look at your expenses? Many of us dig our heads in the sand and allow small purchases to slip through the cracks. However, this non-essential spending adds up faster than you would expect and can slow down your personal finance goals.
If you are sick of searching “How to save money” every month, it might be time to take on the No Spend Year challenge. Though this might sound frightening at first, it is much easier than most people expect, and it helps you shrink your expenses while growing your savings. Keep reading to explore our No Spend Year guide today.
What Is A No Spend Year?
A No Spend Year is what it sounds like on the tin — a 365-day year where you cut out all non-essential spending. It is also sometimes called a No Buy challenge or No Buy Year.
Of course, you still pay your rent or mortgage, bills and food in a No Spend Year. You simply cut out any extra purchases and only focus on what you really need. Think of it as minimalism for your expenses.
No Spend Month vs No Spend Year
You can experiment with a No Spend Month if you are not ready to commit to a complete year. This allows you to briefly try the challenge to see if it helps your finances and is compatible with your lifestyle.
Even if you stop after a No Spend Month, you will likely pick up some new budgeting tricks and learn you can live without some expenses. Perfect if you are curious about intentional spending.
The No Spend Year Rules
This challenge looks different for everyone, but there are some general rules you can follow.
1. Consider What Essential Means For You
A No Buy Challenge or Year looks at cutting out non-essential spending. But what is essential for you? Depending on your lifestyle, you may have more essential expenses than others.
For example, diapers, hygiene products, petrol and medical expenses. Some No Buy participants allocate a £50 date night budget per month as they deem this essential to their lifestyle.
2. Decide If You Can Buy Second-Hand
Some participants also allow themselves to make a few second-hand purchases, as they are cheaper and better for the environment. Strict No Buy participants do not allow this, but you can be flexible if desired.
3. Create A No Buy List
Create a definitive list once you have worked out what you can buy and where you can spend. You can use this list to help you stay on track in the future.
Common No Buy List features:
- No eating out
- No take-out coffee
- No new clothes and non-essential toiletries
- No new home decor
4. Track Your Expenses
Tracking your expenses will always be a great money-saving hack, and you should continue doing it alongside the No Buy Challenge. Seeing your savings grow will motivate you to keep going when you feel tempted to make impulse purchases.
5. Special Occasions
You should also consider special occasions. A No Spend Year can be tough when birthdays roll around, so plan and set savings aside or get creative and focus on low-cost or free presents.
If you do not want to navigate special occasions without spending, try a No Buy Month before committing a year.
Your No Spend Year - The Takeaway
Deciding to do a No Spend Year might feel daunting, but it will quickly fall into a comfortable pattern and you will find new ways to have fun without tapping your cards. Could 2024 be the year for you? Or will you try a month first?
Continue your personal finance research today on the Cash ASAP blog.
