If you’re wondering what the point of a no spend challenge lifestyle is, here are my top 9 benefits of a no spend challenge.
Participating in a no spend challenge is a great way to boost your finances in the long term even if it looks like pennies in the short term.
What Are the Advantages of a No Spend Challenge?
1. Track Your Spending Habits
A no spend challenge will help you to get a better handle on your finances by tracking your spending habits.
Nothing shows you how much money you’re wasting faster than a no spend challenge.
You’ll be able to identify where you’re wasting money and focus on needs (paying off debt, building emergency fund, etc) rather than wants (stuff).
2. Develop Healthy Spending Habits
A no spend challenge helps to start building healthy spending habits and breaking unhealthy spending parts.
You will learn how to become intentional with your money and really think before you spend it.
This doesn’t mean you won’t have fun at all. If you go Defcon on a no spend challenge, you’re going to binge-spend along the way.
3. Free Up Funds
A no spend challenge will help you free up funds you would have spent on stuff to use on important financial goals instead.
For this, I put the no spend money in a particular account and tally it up for the month then put it towards something more important.
4. Boost Your Savings
The money saved from no spend days can help accelerate your savings rate.
Whether it be for an emergency fund or to have more income at your disposal, a no spend challenge can help you achieve this faster.
5. Pay Off Debt Faster
If you’re trying to double down on paying your debt off as fast as possible, a no spend challenge is one of the best ways to go.
You can put the money saved towards making larger payments on your debt balance and prevent you from getting further into debt.
6. You’ll Have Time for More Interesting Things
Feeling bored is one of the things that drives you to spend excessively – shopping, eating out, etc.
When you embark on a no spend challenge, you’ll find more creative ways to spend your time without spending money.
I will write a separate post later about ways to have fun without spending money and lots of low-cost or no spend activities you can engage in.
7. Can Turn Out To Be Environment Friendly
A no spend challenge will lead to less waste on your part which is better for the environment.
All the items you would splurge on require a lot of resources to produce. When you skip those, you don’t spend money on things you don’t need and reduce waste.
8. Resourcefulness
When you’re curtailed by the no spend challenge, you’ll be forced to be more resourceful and look inwards to repurpose, reuse, recycle, and upcycle.
This can create a massive sense of self-accomplishment, help you feel calmer plus you also waste fewer resources this way.
9. Less Stress
You’re no longer running around to stores, waiting in lines, etc to buy stuff on a no spend challenge.
This will likely reduce your stress levels. Yes, you can shop online but the process of shopping online can create stress levels too.
There are really no downsides to a no spend challenge as long as you don’t go Defcon on it.
I will share how to go about this in a way that merges seamlessly with your life in a future post.
In the meantime, continue saving. If you have any other benefits you’ve experienced from a no spend challenge, share them in the comments section.
Anna is a writer, dreamer, and traveler. She believes in having fun now while also planning for the future. She funds her lifestyle by making smart financial investments and decisions. Her favorite tools include investing through Questrade, no-fee banking, and more. Learn more about Anna here. Check out her favorite tools and resources here.