Conquering the Viral No Spend January Challenge
Master the viral No Spend January trend with these expert tips! Discover how to stay committed, shop-proof your phone, make strategic lists, and spend smarter Don't miss out on this ultimate guide to start small and achieve your financial goals!
At 44 years old, Kate Kaden, a single mother from Maine, faced financial struggles following the holiday shopping season. To regain her financial footing, she turned to YouTube to document her participation in the growing trend of No Spend January. This movement challenges individuals to refrain from purchasing non-essential items for an entire month, including clothes, dining out, and even coffee.
Kaden, currently participating in her fifth No Spend January, told CNN, "I wanted to stop the bleeding. I needed food and to pay my mortgage, but I didn't need all the things I was buying."
Kaden is part of a growing number of social media influencers on platforms like YouTube, TikTok, and Instagram, providing tips to thousands of followers on how to navigate the month without spending on nonessential items.
Its also a challenge more people are taking on for shorter periods of timesuch as a No Spend Week, a No Spend Weekend or No Spend Sundayor during other months of the year.
Kate Kaden, a single mom from Maine, is participating in her fifth No Spend January challenge.
Courtesy Kate Kaden
Kaden, who claims to save at least $2,000 during a No Spend Month, has successfully boosted her emergency fund and eradicated her debt. "The most challenging part is breaking the spending habit, but it helps me become more mindful about money for the rest of the year."
According to Neil Sanders, a retail analyst at GlobalData Retail, No Spend January remains "relatively niche" but has experienced an increase in participation in recent years.
"He explained that it's like a financial cleanse after a period of increased spending," he stated. "It's appealing because consumers receive a slew of bills in January for all their holiday spending."
But, he also mentioned that most people are unwilling to give up their luxuries, especially during "a dreary month." "The event is far from being universally accepted."
January is a challenging time to resist the temptation to shop due to the many retailers offering significant discounts. However, if cutting back on spending during this month doesn't appeal to you, consider having your own "No Spend Month" at any other point in the year. This means committing to only spending on essential items such as rent, utilities, gas, and food. Here are some strategies to help you succeed in this endeavor.
Decide why you want this
To kick off a No Spend Month, the initial task is to pinpoint the purpose behind it, whether it's related to short-term or long-term objectives. This could be to increase savings, eliminate debt, or accumulate funds for a specific goal such as a holiday.
People who identify why theyre deciding to cut their spending in January can get closer to their desired goals faster, according to Kaden.
Shop-proof your phone
To resist impulse purchases from apps like Amazon or Target, it's best to delete them from your phone. Unsubscribing from email marketing lists, opting out of text promotions, and even deleting social media can also help. Ted Jenkin, a personal finance expert and author of "The 21 Day Budget Cleanse," suggests that it takes about 3 weeks to form a new habit, including spending habits. Removing temptations during this time can make a significant difference.
He advised reducing social media and screen time, cautioning that social media algorithms are designed to continually serve ads based on users' preferences until they make a purchase.
Influencer Melissa Corriveau, who is participating in No Spend January and provides a spending tracker on her website Life with Less Mess, shared that she unfollows influencers who promote spending money during the month. She stated that this decision has had a positive impact on her mindset.
Identify what you will and wont do
Define your own guidelines. While it's common to cut back on shopping and dining out, there may be occasions where it's acceptable to make exceptions. For instance, you might consider budgeting for a birthday present for a loved one or meeting a friend from another city for a drink.
Kaden remarked, "It's a personal challenge - competing against yourself and striving to improve." At the same time, another TikTok user shared that she is "pushing the limits" by reducing grocery purchases and utilizing the items already stored in the freezer, only purchasing fresh produce, milk, and eggs when necessary.
"Should this go well, I might keep it up in the future," she mentioned. "I have to admit, I'm dreading the Costco trip next month to restock everything."
If you have received gift cards during the holidays or have some saved up, now might be a good time to use them since they were purchased by someone else.
But Corriveau said if its better to avoid shopping all together for the month for your mindset, save the gift cards for later.
Make lists
If you feel the urge to make a purchase, jot it down and wait a few weeks before deciding whether it's a worthwhile buy.
You can also create a list of free activities to enjoy, such as visiting the library, volunteering, going for walks, pursuing a hobby, or watching shows and movies on a streaming service you already have.
Go shopping in your closet
Furthermore, participating in a No Spend Month provides an opportunity to organize and declutter closets and bedrooms. This will allow for a clearer understanding of what items are already available and how they can be utilized. If certain items are no longer of use, they can be donated.
"A sprinkle of minimalism and having less in general relieves stress," Kaden said.
Talk with your partner
Financial expert Jenkin emphasizes the importance of aligning financial goals with your significant other. "It's difficult to manage your spending if you and your partner are not on the same page," he advises.
Meanwhile, influencer Kaden seeks support from friends to stay on track throughout the month. Instead of meeting for coffee or dinner, she recommends engaging in activities like going for a walk or organizing a game night.
Dont quit
Kaden also engages with her audience of 50,000 YouTube subscribers, who exchange thoughts on their No Spend January journey and challenges on her channel. "Connecting with others who share similar goals can provide a sense of support throughout the month."
Setbacks are bound to happen, especially in the initial days, but it's crucial to stay committed to the plan.
"It's easy to unconsciously spend without considering the consequences, as it's difficult to change a habit that you're accustomed to," she explained. "For those who are new to No Spend Month, it's a completely different experience, but even with a couple of setbacks, it's better than the 25 setbacks that are usually encountered throughout the entire month."
Spend smarter
Optimizing monthly spending is a priority for many individuals. Social media influencers like Kiersti Torok facilitate access to valuable coupons and discounts found in local mailers or retail apps.
Start small
Torok guides her 430,000 followers on ways to cut costs on common essentials like toothpaste, toilet paper, and detergent at well-known retailers, frequently reducing expenses by 50% or more.
Some personal finance experts, including Ramit Sethi, author of the New York Times Best Seller "I Will Teach You How to be Rich," are not supportive of the No Spend trend. Sethi advises people to spend confidently on the things they love and cut back mercilessly on the things they don't, rather than cutting nearly everything out.
Jenkin suggested that people could make substantial changes by making small adjustments. He recommended starting by cutting out coffee shop visits, avoiding Amazon purchases, and waiting at least 48 hours before making any online shopping purchases.
