Why I Hate No Spend Challenges
This post might be a little controversial… because it’s all about why I HATE No Spend Challenges.
Yep, I said it.
I just don’t like them. The reason is because I think they are way too restrictive.
I have spoken to numerous people through my Instagram account about how No Spend Challenges always cause them to overspend on their spending days!! Afterwards, they end up feeling like they have no will power and “suck with money,” all because they couldn’t stick to an overly-restrictive challenge.
Definitely not the goal of a no spend challenge.
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What is a No Spend Challenge, Anyway?
A no spend challenge is when you pick a period of time not to spend money on “extra things.” You can still spend money on necessities (rent, utilities, transportation, food, insurance, phone, internet, etc.), but no more trips to your favorite coffee shop, restaurants, or stores.
Some common No Spend Challenges are No Spend Weekends, No Spend Weeks, and No Spend Months.
Why I Hate No Spend Challenges
When it comes down to it, I’m just not a fan of limiting and restrictive beliefs about money. And, for me, No Spend Challenges are all about restricting yourself.
Let’s think of it this way: we’ve all heard about how short-term, restrictive diets are not associated with weight loss. In fact, restrictive diets may even contribute to a cycle of overeating.
Instead, dietitians recommend practicing healthy nutrition habits like eating more fruits and vegetables, meal planning, eating when you’re hungry, and drinking lots of water.
I don’t know about you, but I can count on one hand how many days I’ve lasted on a no-sugar diet. I usually make it 3-4 days, give up, and then eat a pint of chocolate ice cream.
On the other hand, since focusing on creating positive nutrition habits, I am now able to enjoy my sweets in healthy moderation.
So… if we can all agree that creating healthy eating habits are better than restrictive diets, why don’t we feel the same way about creating positive financial habits?
Instead of a No Spend Challenge, focus on creating positive financial habits
Our habits are behaviors that we perform automatically. This goes without saying, but habits are super powerful in how we live out our daily lives.
When people make drastic changes to their habits, they end up falling off the wagon, giving up, and returning to old behaviors. When it comes to No Spend Challenges, a lot of people fail the challenge, overspend, and give up on trying to change their financial habits altogether.
How to create positive financial habits
Some examples of positive financial habits are:
Setting vivid financial goals
Tracking your spending
Creating a budget
Routinely saving money
Paying off debt
If you want to start building more positive financial habits, focus on identifying the cause of your actions.
For example, if someone struggles with impulsive spending, it is helpful to start asking why they are spending impulsively. Some common causes of impulsive spending are:
Feeling stressed and wanting to buy something because it’s convenient
Feeling down and wanting to buy something to make them feel better
Buying something because they think they’re getting a good deal
Another example is if someone wants to start saving more money, but never has any money leftover to save at the end of the month. A positive habit change would be to automate transfers to savings as soon as they get paid. That way, they save money before they have the chance to spend it.
Once you figure out why you are performing a negative financial habit, you can start challenging and changing those routines.
Final Thoughts
While, yes, No Spend Challenges definitely work for some people (which is fantastic!), there are others that aren’t able to stick to a no spend challenge and end up thinking that they are terrible with money.
If this is you, I promise that you are 100% capable of creating positive financial habits. The goal is to do it in a way that isn’t overly-restrictive.
While working on creating positive financial habits, be sure to give yourself grace, and find ways to reward yourself on your hard work and progress.
What are your thoughts on No Spend Challenges? I would love to hear your opinions in the comments below!