Slashing impulse buys can give you more than a savings boost. Here's how to get on top of #nospendmonth. – Photo: Sebastian Gollnow/dpa
By the end of the month it can be easy to think, ‘Where did all my money go?’ If this sounds familiar, and if you feel as though you often have little to show for the cash you’ve spent, the ‘no spend’ trend could be for you.
It’s been around as a concept since the early 2010s, but is now all over social media – check out #nospendchallenge or #nospendmonth. “It’s basically talking about a set period of time where you make a concerted commitment to not spend money on things that aren’t essential,” explains Matthew Sheeran, from UK-based credit counseling service Money Wellness and a trained debt adviser.
It could be for a day a week, just on weekends or for a whole month. “You can still do your food shopping and pay your bills,” says Sheeran, but all those little luxuries, like takeaways, coffees or new clothes, are off limits.
It’s a chance to reset, budget better and “really realise what you do and don’t need”, says Sheeran. “A lot of people will get a coffee every day just because that’s what they do, it’s part of their routine. They’ll soon realise it’s not something you actually have to do.”
The savings you make by cutting those unnecessary purchases out, and making your coffee at home instead, could you mean you’re better able to work towards a specific financial goal, like buying a house. “You can make the choice of what you want to spend that money on rather than just naturally frittering it away throughout the month on non-essentials,” says Sheeran.
While saving money might be the reason you start ‘no spend’, it’s far from the only benefit. “It really can reduce stress and provide that sense of control over your money, which empowers people and makes them feel better,” says Sheeran.
It’s easy to consume mindlessly, but by choosing not to spend on certain items and certain companies, or mending items rather than buying new, you can make an ethical, environmental or social stand. Things like cutting out your 4pm chocolate bar from the newsagents and walking to work for free rather than taking the bus, can have also an impact on your health as well as your wallet.
“If you are wanting to make a conscious impact to reduce your carbon emissions, lose weight or improve your lifestyle, then it doesn’t have to just be about money,” says Sheeran. “If you’re thinking, ‘I’m not actually struggling,’ or, ‘I am able to save some money,’ it doesn’t mean this isn’t for you. Think about what matters to you, and it might still be worthwhile.”
Slashing impulse buys can give you more than a savings boost. – Photo: Christin Klose/dpa
Sheeran recommends making a budget before you start ‘no spend’ so you can “sit down and highlight the things you are spending money on that aren’t essential.” Next, work out when you’re going to have ‘no spend’ days and “fully commit yourself”.
“You could even look at doing it with a friend or a family member. It’s always easier to follow the trend and keep that commitment if you don’t do it alone,” recommends Sheeran. “Keep talking to them and seeing what’s working and what isn’t.” That might include always asking yourself, ‘Do I need this?’ before clicking ‘buy’ or leaving things in your online basket for several days before deciding if it’s an essential.
At the end of your ‘no spend’ period, “look at the money you’ve saved and decide what things you want to give up for good, or what things you felt like you really missed out on,” adds Sheeran. “It’s not about completely stopping spending money for the rest of your life. It’s about identifying the things that matter to you and the things that don’t.” Then it’s a matter of trying to stick to spending only on the things that matter long-term.
To stay motivated, use banking app pots to track certain expenditures, for example, food and drink, hobbies, leisure, shopping etc. “Or, if you usually buy two coffees a day, and it’s usually £10, put that £10 into your savings pot,” says Sheeran.
Which route you take “depends on how impulsive you are. If your problem is impulsive spending, it’s harder to move money over because you don’t have a set routine, in which case, it might be better to see that there’s no money being spent in certain pots,” says Sheeran. “But if you’re somebody that has a routine, and you buy your coffee every day and you do a clothes shop every week, then you can move it into a savings pot and see your money grow and grow.”
Avoid going overboard with your bank card when your ‘no spend’ days come to an end.
“I’ve given debt advice in the past and have heard of customers that started to save, saw some success and then regressed. Maybe in their mind, because they’ve not spent for a week, they think they can then splurge,” says Sheeran. “It sets you back to square one.”
However, he’s not completely against treating yourself every now and again. “It’s having that [saving] discipline, but also treating yourself where you think it’s appropriate,” he says. “As long as you’re still able to save, and you’re not spending everything that you’ve saved, don’t punish yourself. Equally don’t let the reward you’ve got from being so disciplined go to waste.” – dpa
