Make room, Dry January and Movember. We’re here to advocate for a new annual tradition—the “No Spend Month.” It might sound like a daunting, almost impossible task, but the extra work is worth it in the end. Here’s how it works and the top three long-term benefits to your financial health.
How Do You Do a No Spend Month?
A no spend month is exactly what it sounds like. You just choose one month to consciously not spend any unnecessary money. Don’t worry, we’re not talking about unpaid rent and skipping out on bills. This month involves eliminating, as far as possible and reasonable, costs that are not required for living.
How strict you are is up to you, but tighter restrictions lead to greater benefits. So, how can a no spend month help your finances?
Benefit #1: It Relieves Stress and Anxiety
The modern world is filled with aspirational thinking. Your social media feeds are filled with filtered pictures, influencers’ glamorous updates, and unrealistic depictions of your friends’ everyday lives. You are even surrounded by aspirational brands. As a result, you face hundreds (if not thousands) of buying decisions every single day. But many people are learning that living with less relieves stress and anxiety.
A no spend month allows you to live more comfortably within your means and takes away the stress associated with “Should I really be spending this?” thinking. It allows freedom from the constant need to buy more.
Benefit #2: More Time In Your Day
A no spend month practically begs you to slow down and enjoy the simpler things in life. For one month, you’ll spend less time at bars and restaurants or aimlessly shopping on Amazon. You won’t spend hours rushing between appointments as you visit the hairdresser, hit the nail salon, or run to the local coffee shop.
It might take a little creativity, but you’ll find that there are plenty of things to keep you busy that don’t cost a dime. Hit the gym more often, take a walk in the park, or spend evenings reading that stack of books you’ve been putting off. This month will demonstrate how much time you spend spending money. And how valuable that time truly is.
Benefit #3: It Saves Money
It goes without saying that a no spend month saves money. However, a strict no spend month will almost certainly save you more money than you think. It’s an unfortunate truth that impulse buying adds up, and quickly. Your small, forgettable purchases could be costing you hundreds of dollars a month. Some estimates suggest that impulse buying costs 450 dollars per month for average consumers.
As you prepare for post-pandemic life, you will inevitably be tempted to spend more time outside of the house. A month without extra spending allows you to calculate these costs of everyday life and fully grasp how small spending quickly adds up.
Start Your No Spend Month Now
You don’t need to wait until January or November to begin your no spend month––you can begin at any time. Best of all, the long-term benefits of taking a break from extraneous spending can change your mental, financial, and overall well-being.
If you found the idea this ideaa interesting, visit the DEXSTA Federal Credit Union blog to find many more ways to build a better financial future.