Is debt weighing you down? Are you eager to begin investing but can’t find the money? If so, maybe consider using your tax returns (that is, if you’re anticipating a refund) and try this 31 day “no-spend & thrifty” challenge!
By cutting non-essential spending and embracing thrift for one month, you can painlessly free up cash to crush debt and start growing wealth.
It only takes 21 days to form a habit. So with discipline, you can establish money-saving routines that become a lifestyle. Here are actionable steps to take:
Live On a “Thrift Diet”
Aim to only buy used goods and absolute necessities for 31 days. Shop at thrift stores, consignment shops, Facebook Marketplace, etc. Treat yourself to minor indulgences only if they’re thrifted.
Here’s an example:
- Furnish an apartment with secondhand furniture and decor rather than new mass-produced pieces.
- Satisfy fashion cravings by reconstructing thrifted clothes into on-trend looks.
- Purchase used books and movies rather than paying full price.
- Swap out old electronics for refurbished or vintage replacements found thrifting.
This requires planning and creativity, but the savings add up. Any purchases should be deeply discounted.
Use Time as Currency
Rather than spending money, invest time into DIY, homemade and free activities. Some ideas:
- Host potlucks with friends instead of going to restaurants.
- Give yourself a spa day with homemade bath products rather than visiting a salon.
- Entertain kids with nature walks, crafts projects, board games, library books.
- Learn new skills through free podcasts, blogs, and library books.
Shift focus to non-material happiness and fulfillment. You’ll naturally buy less stuff.
Pay Extra Toward Debt
Rigorously track where every dollar saved from a no-spend month goes. Make it very tangible.
- Ideally, put at least 50% directly toward debt repayment above normal payments. Adjust budgets to make this possible long-term rather than a one month sprint.
- If you save $500 not spending on shopping, entertainment, hobbies, etc.—pay $250 extra toward debt.
The highlights include:
- Paying off high APR credit cards first when possible.
- Targeting smallest debts first if need emotional wins.
- Refinancing high interest loans for better rates when able to.
Watch your debt shrink faster than expected!
Start Investing Incrementally
Take the remainder of no-spend savings and begin investing. Even small amounts add up over time.
- Open a Roth IRA and contribute $100/month consistently. Enroll in your company’s 401k plan and put 3-6% of each paycheck into funds.
- Use an app like Acorns that lets you invest your “spare change” from everyday purchases. There’s also the app Betterment, it is more goal-oriented investing with automated portfolios based on risk tolerance.
- If debt free, put unused cash into a diversified low-fee index fund each month. Reinvest dividends.
- Take thriftiness to the next level by negotiating recurring bills, reducing subscriptions, or downsizing your home if mortgaged, freeing up investment capital.
Towards a Brighter Financial Future
A no-spend challenge builds awareness around needs versus wants and frees up money for what matters most—eliminating debt and growing your nest egg. Try it for 31 days. What will you accomplish?
Even a short spending freeze can be transformative. It’s an opportunity to reset your financial habits and get creative about enjoyment that doesn’t rely on spending. You may find you need much less than you thought to feel content.
The money you save can make a real impact. Help your debt snowball pick up momentum. Save for that down payment faster. Or take a vacation using only what you’ve stashed away. A no-spend challenge leads to financial freedom.
I’d love to hear about your experience! Share your no-spend tips and victories in the comments. How did your awareness around spending change? What will you do (or did you do) with the extra savings? Let’s inspire each other to spend mindfully and reach our biggest financial goals. This community and I are here to cheer you on!
