Here’s How You Can Accomplish Doing a ‘No-Spend’ Month

Pennygem

So your spending has gotten a little out of hand, and now you’re ready to commit to a “no-spend month,” a savings challenge that may sound impossible, but is totally doable with the right mindset. Here’s how to set yourself up for success.

Transcript

00:00So you dropped a small fortune over the holidays and now you're in recovery mode.

00:08Or maybe you're trying to save up for that big vacation and what you need is a miracle.

00:13A no-spend month can be just the answer you're looking for. Here's how to do it right.

00:20Before the month begins, list out the non-negotiables, rent, car payments,

00:25medication, etc. Then make a plan for essentials like groceries and gas.

00:30Basically, you should be cutting out anything that is a want or impulse buy.

00:35It's important to define exactly what you're allowed to spend on and what you're not,

00:40so there's no wiggle room later when you're feeling the urge to buy that latte.

00:47January can seem like the perfect opportunity for a financial freeze.

00:50It's right after the holidays and you're likely not up to too much anyways.

00:54On the other hand, since it's practically easy mode for scaling back your spending,

00:59it may not be the most effective. Whatever time frame you pick,

01:03you'll probably want to avoid summertime or a month with a lot of birthdays or weddings.

01:09Having to say no to activities with friends or family isn't fun, but telling them about your

01:14no-spend month in advance, or better yet, encouraging them to join, gives you a built-in

01:20accountability system. CFP Leo Mart tells NerdWallet,

01:24instead of going out for dinner or drinks, plan a movie or board game night instead.

01:29Finally, tracking your experience and progress can make the impact of a no-spend month

01:34all the more apparent. It's all about that peace of mind.

01:38Knowing exactly how much money went out can be a major stress reliever,

01:42especially compared to the chaos of the holidays.

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