One of the smartest ways to beat post-December debt is to try the ‘no-spend challenge’. It’s a great idea to make a New Year’s resolution to exercise more or eat more mindfully. But quitting unnecessary shopping, and living a cheaper lifestyle, for 30 days is the way to boost your financial health.
By holding on to your cash for a set period, you’re able to see how your spending habits were holding back your attempts to save or build wealth. For example, can’t resist a January sale? By skipping the post-Christmas shopping frenzy, you may realise that items you would have previously bought simply because they were cheap don’t add any value to your life. Don’t worry, you’ll live through it.
Committing to a no-spend period – whether it’s a week or a month – will highlight how you adapt and find other ways to meet your needs without spending.
How it works
With any challenge, you need to set a goal. If you were working on a health challenge, your goal could be building up to a 5km run. For a no-spend challenge, it could be saving money to pay off your credit card or retail accounts.
Kick off by establishing your bare-minimum budget. How much do you need to live on for the month? You can’t avoid buying petrol, but you could join a lift-share scheme, or walk to the shops instead of driving. Tiny tweaks to cheaper alternatives add up to big savings. So, what other strategies can you use to win at this challenge?
Make it a healthy habit
Cracked the challenge? Now that you’ve highlighted wasteful spending habits, let them go for good. Also, keep yourself in check by implementing a no-spend weekend every month.
Or, make your workdays a no-spend zone. Prep your lunch, and don’t splurge on cooldrinks or coffee. Let’s do the maths: a R15 coffee for 20 days a month costs R300. Ditch this from your daily routine and you’re already well on your way to saving.
The information contained in this article is for information purposes only and does not constitute professional advice.
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