Albany Times Union (Sunday)

Give spending challenge a try

- By Lauren Schwahn Nerdwallet

In January, I took up a no-spend challenge. That’s right — I refrained from making nonessenti­al purchases for one whole month.

With my travel and entertainm­ent expenses basically nonexisten­t during the pandemic, the challenge really boiled down to two categories: shopping and food delivery.

I’d never done a spending challenge before and didn’t know what to expect. Would I give up immediatel­y? If I succeeded, how much money would I actually save? Here’s what happened, what I learned from the experience and how you can try it, too.

Create plan that’s doable

Part of the reason why I never previously attempted a no-spend challenge is because I thought it would be too stressful and, ultimately, ineffectiv­e. But breaking my usual spending habits was surprising­ly easy. For me, the key was creating a plan and not making it overly restrictiv­e.

After my first few times reflexivel­y opening the Target or Amazon apps, I realized I mostly shop online out of boredom. So I decided to reserve two apps specifical­ly for mindless scrolling: Instagram and Twitter. Once I exhausted those, I’d have to put the phone down and find another way to pass the time. Usually, I’d opt to read a book or do laundry, both of which were much more productive and much less expensive. The urge to shop dwindled by the day.

I took a different approach to takeout food. My husband and I agreed to cut back rather than cut out so we could continue supporting local businesses. Plus, between busy work schedules and taking care of our child, we appreciate­d

having breaks from cooking. Knowing that I didn’t have to deprive myself completely took some of the pressure off.

Stay focused

Determinin­g whether an expense qualified as a necessity or just a nice-to-have was tricky at times.

When some stray cleaning spray left a noticeable bleach stain on my jeans, my impulse was to order a new pair. Replacing ruined clothing isn’t the same as shopping for the heck of it, right? But the more I thought about it, the less I could justify the purchase. I have more jeans in my drawer. Besides, I’m working from home and wear yoga pants most days anyway.

I ultimately decided against it. I did, however, buy a new pair of shoes for my 1-year-old son in the next size up. He technicall­y didn’t need them yet, but I considered this a necessity because he could outgrow his current pair at any moment.

Think of the savings

I made only one purchase in the shopping category for the month of January: the aforementi­oned baby shoes for $27.

Normally, I would spend closer to $150 per month on nonessenti­al shopping. That means I was able to save over $120 on shopping in just 31 days.

As for food, my husband and I previously spent about $240 per week on lunch and dinner deliveries. By scaling back to roughly two orders per week from six, we dropped that total down to $80.

Our grocery spending increased, but not significan­tly. We noticed that we wasted less food by cooking more often and using up what we had. We netted out about $100 in savings per week on food — so $400 for the month.

When I add it all up, I spent roughly $500 less in January than I would have if I hadn’t set my no-spend goal. Not a bad cushion for my emergency fund.

More work to do

Despite successful­ly completing the no-spend challenge, I still spent more than I would have liked.

It turns out my essential expenses need attention, too. Rent, utilities, child care, car payments, diapers and other recurring bills get expensive. I can’t eliminate all these costs, but my goal for the near future is to trim at least some of them.

For example, my utility bill was $32 more in January than in December. Perhaps I’ll start there. Time to unplug my beloved space heater and put on extra layers.

You can do it

It’s OK if you’re hesitant about starting a no-spend challenge. I was, too. I hope my experience encourages you. But your journey doesn’t have to look exactly like mine.

Start by understand­ing your own spending habits and goals. Then, you can create guidelines you’re comfortabl­e with. Have faith in yourself and give it a shot. Remember, it’s about making progress, not achieving perfection.

 ?? Jenny Kane / Associated Press ?? By understand­ing your own spending habits and goals you can create guidelines you’re comfortabl­e with to spend less and get your finances back on track.
Jenny Kane / Associated Press By understand­ing your own spending habits and goals you can create guidelines you’re comfortabl­e with to spend less and get your finances back on track.

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