Christmas is over and many of us are now worried about we will get through January without getting into debt.
January is usually the quietest month of the year and is a good time to try the No-Spend January challenge! All you need to do is try and not spend money on unnecessary things for the entire month. This includes but is not limited to alcohol, new clothes, takeaways, and coffees on the go. Instead, you focus on spending only on essentials like rent, groceries, and bills.
It’s a great way to reassess your relationship with money, break bad money habits, and begin focusing on your long-term financial goals.
Taking part is a great way to get your finances in order and save money. Below are some tips on how to do no-spend January successfully.
Decide what you will (and will not) spend money on
Begin by deciding what you will and will not spend money on for the month aside from the essentials. This will vary from person to person, and maybe you will budget for one takeaway that month, or a new coat.
Make a list of your spending rules so that you can stay on track and avoid being tempted to overspend.
Create a budget (and stick to it!)
If you don’t have already have a budget, now is the perfect time to create one. A budget will help you see where your money is going and track your progress throughout the month. There are lots of free budgeting resources available online.
Many of us ‘passively spend’ on subscription services we don’t use. Make a note of how many you actually use and cancel any you never use / don’t find useful.
Once you have set your budget – make sure to stick to it! This may require self-control, but a good tip is if you see something you want to buy, sleep on it and then see how you feel.
Know your triggers that could get in your way
If there are certain activities, places, or things that can trigger you to impulsively spend, make a point to avoid them throughout the month. You could also delete your cards from your digital wallet so it’s not as easy to spend.
Research free activities and bargains
One of the hardest parts of the no-spend challenge is finding activities that don’t require spending any money. To avoid getting bored, and tempted to spend, make a plan of how to keep busy this month.
If you’re worried about the cost of living, we are here to help. The sooner you contact us, the sooner we can help.