We may be halfway through the month, but there's still time for the no-spend September challenge.
It's the latest viral social media challenge that commits you to cutting back or eliminating spending for a month. If your finances are struggling after overspending this summer, bouncing back in time for the holidays can be tough. Savings challenges like this one can help get your finances back on track.
And while September seems to be the sweet spot between summer and the holidays, you can actually start a no-spend challenge anytime.
Even if you decide to cut spending for a few days for the remainder of the month, it can still help you make progress toward your money goals.
Here's how to get started and use a no-spend challenge to reset your finances.
What is the no-spend September challenge?
The challenge is straight to the point. Don't spend on anything other than your bills and necessities this month. That means no pumpkin spice lattes, birthday gifts or Halloween pillows. And if you're like me, that's not easy.
But the challenge's popularity on social media means you can find plenty of ideas for staying motivated to avoid spending.
One TikTok printed a calendar page for the month of September and color-coded their spending: green to celebrate days with no spending, yellow if there was a planned expense and red for an unnecessary expense.
Savings challenges can be a helpful way to review your current money habits and see where you might have gotten off track with your spending. September may be a particularly good time because memories of summer fun are still fresh enough to be motivational, according to Dasha Kennedy, CNET Money expert and founder of The Broke Black Girl.
"Reflect on the joy and experiences you had this summer," she said. "Reminding yourself that you’ve already indulged in a good time can make it easier to focus on saving and avoid FOMO."
How to get started with a no-spend challenge
If you're interested in trying a no-spend challenge, the good news is that you can make up your own rules. You can start anytime, and you can decide what to include in your no-spend categories.
Kennedy recommends starting by looking at your recent spending patterns and categorizing your expenses as essentials and non-essential. Then commit to cutting the non-essential spending for a specific time period -- if a month seems too hard, consider starting with a few days or weeks. If cutting all non-essential spending seems unrealistic, focus on a specific category.
"Set a mini-goal for the remainder of the month, such as avoiding dining out or cutting back on impulse purchases," Kennedy said. "Remember, small adjustments can make a big difference over time."
Kennedy also recommends a budgeting app to categorize your expenses and set spending limits, which will help you keep tabs on your money in real time.
Another way to use a no-spend challenge is redirecting money in your budget toward a specific goal. Alaina Fingal, CNET Money expert and founder of The Organized Money, recommends reviewing your previous month's spending for places where you can cut, then depositing the money in a high-yield savings account.
"If your restaurant budget is usually $250 but you are currently on a 'no spend,' now you can add that $250 to your Christmas savings fund," Fingal said.
How do you decide what's essential vs. non-essential? One technique Kennedy recommends is “conscious spending." Before making any purchase, ask yourself if it aligns with your financial goals or if it’s just a temporary desire.
Tips for incorporating no-spend challenges through the end of the year
Here are a few ways Fingal and Kennedy recommend to cut back on spending ahead of what can be a very busy, expensive time of year.
- Incorporate “no-spend” days or weeks regularly into your routine to stay motivated. You can use a calendar to track your "no spend" days. Fingal uses stickers on her calendar and rewards herself based on her progress.
- Wait 48 hours if you're considering making an impulsive purchase. For example, wait to buy a shirt at Target that you didn't plan for.
- Select one day every pay period for online shopping and set a budget. Leaving items in your cart or saved for later can give you extra time to decide whether you really need them.
- Swap costly events for cheaper options. For example, instead of dining out, host a potluck dinner that requires everyone to bring a dish. Or instead of shopping, try a clothing swap with friends. Kennedy recommends planning these alternatives in advance so you're not tempted to overspend on a whim.
- Choose one or two categories to make no-spend days easier to stick to but still impactful -- and perhaps a habit you continue even after the challenge ends.
