How a no-spend challenge can reduce stress and make you happier

The benefits of such a challenge are more far-reaching than you might expect. There’s the savings, of course, but you might even notice a positive shift in your mood.

Here are just a few side effects you might experience on the journey.

You’ll save money 

Obviously, one of the clear goals of a no-spend challenge is to save money. It’s a simple equation:  spend less, save more. If you stick to your plan, you should notice more funds accumulating in your bank account, which can motivate you to continue saving even after the challenge ends.

More money in the bank also means you can rest easy knowing that if an emergency expense pops up, like a car repair or a broken furnace, you have enough to cover it. Or, you can apply your newfound savings to debt repayment or something fun, like that 2021 vacation fund.

Improve your financial awareness 

Spending $0 on luxuries gives you an opportunity to take a step back and assess your finances. By keeping a journal, you begin to identify patterns, like what emotions motivate you to spend, or how you feel after going on a spending spree.

Reduce clutter 

A clean space can help calm the mind. Research has even shown that an uncluttered environment can lead to increased productivity Opens in a new browser., healthier food choices Opens in a new window. and an increase in physical activity Opens in a new window.. The less you buy, the less clutter you have. That’s simple enough.

Reduce stress 

When you cut most of the shopping and dining-out from your lifestyle, it also means less driving and rushing around, fewer lines and, likely, a greater sense of overall calm. Slowing down can help reduce stress and give the body and mind a chance to catch up.

Find more free time 

Time is our most valuable resource. So, why not replace 2 hours of shopping with a walk in the park or a nap? Those activities are completely free and they sound dreamy, don’t they?

Prioritize quality time 

Finally, a no-spend challenge lets you appreciate what you already have in terms of things and, more importantly, people. Research shows that spending more time with the people you love has far-reaching benefits like decreasing the likelihood of health problems Opens in a new window..

Now that you know the basics of what a no-spend challenge entails, here’s a step-by-step guide to getting started.

Start with why 

There’s no right or wrong reason to try such an experiment, but it’s worth considering what you want to get out of it. What’s inspiring you to take this step? Are you constantly overspending or in debt? Is your house too full of stuff? Do you have a large savings goal you’re working to achieve?

Determining your “why” is important, because it is what will motivate you to keep going when you’re tempted to reach for your wallet.

Set your boundaries 

A no-spend challenge doesn’t require you to cut out everything. Obviously, you have to eat, pay your bills and spend on other essentials. Other than those basic bills, it’s totally up to you to determine where you want to stop spending money. Is it ordering takeout, buying clothes or forgoing expensive wine? What you decide will depend on your “why” and the financial goals you’re trying to achieve.

Establish a time limit 

Next, decide how long your no-spend challenge will last. If you’re not sure how long you want to test yourself, start small. Commit to a day, a few days or even a week to see how it goes. You might even want to extend the challenge once you begin to see positive results.

Share your plan 

Share your plan with those closest to you. This will help ensure that your friends and family don’t unknowingly tempt you to break your “rules.” Plus, once you share your plans, others in your immediate network might even want to join you. You can act as each other’s support system and hold each other accountable.

Keep a journal 

Write down how you feel throughout your no-spend journey. If you really want to buy something but manage to resist the urge, jot down a few notes about it. 

Are you still thinking about a missed purchase a few days later? Or, are you proud of yourself for sticking to your goals? Record these feelings, too. Revisiting your writing later on will provide a great deal of insight into your spending habits.

The no-spend challenge might not sound like a ton of fun, but it really can be. Even better, it works. Here’s why.

Gamification makes it fun 

Gamification is when you apply game-like elements to a non-game environment. Those elements include things like establishing rules and competing with yourself.

The no-spend challenge effectively gamifies the task of saving and, in doing so, increases engagement and motivation. If you’re someone who likes a challenge, this method of saving can be super-effective.

It reduces decision fatigue 

Decision fatigue is the result of being faced with too many choices. We only have so much mental energy. When all of it has been spent, our willpower starts to dwindle, which can result in poor decisions — financial and otherwise.

By establishing clear guidelines, like what you won’t spend money on and for how long, you take all of the guesswork out of your spending. There’s no need to make a decision. After a long day of work when you’re tempted to order dinner, you can tell yourself, “No, the decision has already been made.” It’s that simple.

A no-spend challenge is a great way to prove to yourself that you are capable of living with less. It’s a simple and effective way to learn the difference between your needs and wants. It’s also a wonderful opportunity to reset the way you think about your paycheque.

So, what are you waiting for? Set your parameters and see what you can accomplish with a no-spend challenge of your own.