What is it?

For one month you only spend on essentials such as rent, bills, groceries. Any necessities are allowed but no eating out, clothes, coffees, Netflix subscriptions etc. This can even extend to walking / cycling to save on transport. The idea is to use what you already have.

What are the Benefits?

· Really great for resetting your finances and for breaking bad spending habits

· Identify where you are overspending and where you can cut back longer term

· Understand what items you normally purchase that you don’t miss so don’t need to purchase in the future

· You can save significantly more than an average month, which can help you reach your savings goal or reduce your debt quicker. Some people save over £1000 in these months.

How do you do it?

1. Plan which month to do it – for example, not when you are going on holiday or in the run up to Christmas

2. Write a list of items that are essential, the monthly cost of this and stick to the budget. Challenge yourself to ensure to only include items that really are essential.

3. Write a goal of how much to save and what you will put the money towards to motivate yourself

4. Tell your friends: It’s easier to stick to a goal when people know you are doing it. It helps keeps you accountable. If you are invited to the pub, you can remind them you are doing no spend month so will come and drink water. Or offer a free alternative.

5. Find some allies: Join an online community also doing the same thing for support and ideas! See if any friends want to do it with you.

6. Remove temptation:

a. Paying for things: use a prepaid debit card with the monthly budget on, leaving debit/ credit cards at home, temporarily freezing your debit / credit cards, remove autofill for your card details on your mobile / phone, pay with all items in cash

b. Buying items: don’t browse online or even block websites such as Asos, don’t window shop. Unsubscribe from emails from brands you like offering discounts. If you do want to buy something, can you borrow it or swap something you have for it instead?

7. Make do with what you have: use clothes and toiletries you already have. Go through your wardrobe and see what clothes you’ve forgotten and can wear again. Changing accessories changes an outfit.

8. For food: try meal prepping to save time and money. Go to the supermarket with a list of items for the meals you will make. Use up food already in your cupboards

What fun things can you do instead of spending money?

Makes a list of alternative things you can do instead to keep yourself busy.

– Spend time in nature such as hiking, parks or a picnic

– Board game / video game / film night

– Visit free attractions such as museums or what is advertised on timeout

– Cook with friends, and if you are going to a dinner party offer to help cook/clean up instead of bringing wine

– Book club and borrow books from a library

– Hobbies – do you have art supplies you can paint with, an instrument you can play

– Do DIY projects or de clutter your home

– Organise a clothes swap with friends

Afterwards

· Evaluate whether there were items you normally buy that you don’t miss, in the future can you do without or buy a cheaper alternative? For example, have you found you don’t mind eating out less, or don’t mind buying fewer clothes? Or can you borrow something instead of buying?

· Make a new realistic budget. Set up an automated transfer after payday of your new monthly saving goal (or debt reduction) into a savings account. Having several bank accounts can help managing your bills and ‘fun money’ easier by having a clear separation it helps you keep track.

· Consider introducing a “no spend week” or “no spend day” each month. The idea isn’t to overspend on the other days or other weeks, but see where you can cut back and save. Also if a whole month is too hard, try starting with a day or week.

· Think consciously about each purchase. Wait 30 days before purchasing an item to see if you still want it.

· Enjoy reaching your financial goals that bit quicker!