While most people think they don’t earn enough, often a good chunk of the issue lies in what they are spending their money on.
Like everyone, I find that over time certain erstwhile non-essentials get reclassified as essentials in the fooling myself region of my brain. But forgo them for a month’s no-spend challenge (or a year, as I’ve seen some people do) and you get a new perspective on these “essentials”.
The theory of a no-spend month isn’t to give these things up forever. Just take a break. During that break you’ll rack up some savings, but also have time to mull over whether you get value from your spending. In some cases you’ll most likely say “yes” and in others “no”.
When you return to your new normal spending, it could be in a controlled, budgeted way. I don’t know how often people go to the car wash. But maybe you can double the gap between visits, which halves the price.
There are a mountain of things we can do without spending money on. Everyone is different. I sometimes Google to see what other people don’t spend money on, which in turn gets me thinking about essentials versus non-essentials.
One category we can spend money on without thinking is disposable items. All sorts of single-use items: paper towels, tissues, sanitary pads, nappies, single-use water bottles, razors, make-up wipes, hair dye, tampons, lunch bags and much more. Either don’t use them, or buy/make perfectly good reusable ones. Bidets are replacing toilet paper for some people. I have even read on zero waste groups that reusable cloths are a thing. They are washed out and reused. That’s one step too far for me.
Some of the other items people don’t spend money on during their no-spend challenge weeks, months or years, include car washes, manicures/pedicures, alcohol and so on.
Some things to cut from spending can be a little hidden. For example, not many people consider bank fees to be spending. But they are. Learning to live without these by switching accounts and managing the ones you have better can add to the no-spend challenge. Ditto by cutting back on paid-for apps and streaming services.
Another way non-essential spending is often hidden, and I’ve written about it before, is in the supermarket trolley. A good chunk of most people’s supermarket spend is on non-essentials. We just can’t always identify them. Here’s a hint. Anything you drink, other than tap water, is not essential. So are any pre-prepared foods. This challenge is only a specified period. It’s possible to live simply for that time.
George says if you struggle to do a full no-spend challenge, give yourself some leeway to work around your lifestyle. “For example, you could cut something as simple as dining out, for a certain period. The aim is simply to understand your spending patterns a little better - and figuring how much you can do without. And it’s often surprising to figure how well we can live even when spending far less than usual.”
Remember, cutting spending is only part of the picture. If you can earn more, spend within your means, and invest small amounts regularly, life will become easier financially.
