Buzz
As we prepare to start a new year, how about we take on a no-spend challenge this January? If you’ve been following Two Cents for a while, you might be thinking, “Hey, we did this last year. Get with the times.” I hear you! That’s exactly why I’m bringing it back for round two.
There’s something about the clean slate of a new year that makes it the perfect time for a no-spend month. After the hectic, sometimes extravagant holiday season, January becomes the ideal month to reset financially. It's a moment to focus on spending less, review your budget, prepare for tax season, and perhaps even reassess some of your financial goals.
I know this challenge may be a bit sudden, but don’t worry – we have a guide to prepare for a no-spend month if you’re ready to dive in headfirst. I’m not the type to live off the last crumbs in the pantry, but if that’s your style, don’t let me stop you from going full throttle.
If you’re ready to jump in, there are two main approaches you can take.
One option is to eliminate all expenses that are nonessential and nonrecurring. You can still keep Netflix if it’s on autopay (and because you might be sticking to staying in more this month). You can keep the weekly snacks you take to work for post-lunch enjoyment. You can also keep gas for your car, quarters for the laundromat, and the dance class you’ve attended every Friday night for years.
This approach helps you identify which potential expenses are truly unnecessary and can be cut out with a bit of discipline.
Alternatively, you can focus on one specific category and be strict about it. Whether it’s takeout or houseplants, if there’s one category that drains your budget month after month, pinpoint it and commit to cutting it out. Just make sure not to let other expenses sneak in to fill that gap.
Here’s where I’m focusing my no-spend challenge: No spending after 10 p.m. As a night owl, that late-night burst of energy often leads me to make poor decisions—whether it’s late-night online shopping, impromptu Lyfts to “grab one drink,” or snacks that aren’t needed. Sometimes, you’ll find me at the grocery store on a Friday night, living my best life.
But come January, my money will vanish like Cinderella’s carriage at 10 p.m. every night.
That doesn’t mean I’m ignoring my overall finances. I’ll be tracking my spending manually throughout the month to identify my high and low categories as I reevaluate and refresh my budget for 2020.
Are you in? If you’re taking on some version of a no-spend challenge this January, let us know in the comments. We’ll check back midway and at the end of the month to see how we all did.
And if you joined us last year, share your insights with the group. What did you learn? What would you do differently the second time around?
