The start of the new year is a perfect time to get a grip on your finances by embarking on a no spend January.
A no spend month is where you cut your spending right back to the absolute bare minimum.
This doesn’t mean you stop eating, or tell the bank to wait a month for that next mortgage payment. It means you strip back to spending only on the essentials.
So you will spend money on:
- Rent
- Utility bills
- Travel
- Food
- Essentials for your kids – such as new school shoes
You won’t spend money on:
- Takeaways
- Going out
- Non-essential new clothes
- Make-up
- Beauty treatments/haircuts
Reasons to do a no spend January
The idea behind a no spend month is you save all that disposable income you would normally spend on fun stuff, and it gives your savings a nice boost.
Some great reasons for getting stuck in to your own no spend Jan are:
- Christmas has wiped you out. It’s common to overspend at Christmas. There’s a lot to buy – gifts, food, decorations and going out. Cutting right back on spending in January can redress the balance.
- It can kickstart healthy budgeting habits. If you’ve always struggled to budget and really get a strong hold on your money then this is a good way to get started. It forces you to take a step back and assess your budget. Then once you’ve spent four weeks not spending on stuff you don’t need, it can lead to a mental reset in terms of your budgeting and saving.
- Might get you on the path to your ultimate savings goal. We all need to save money for something. It could be a house deposit, a renovation project, a dream holiday or maybe you want to build up your emergency pot of savings. This can get you started. You don’t have to continue a no spend month beyond the four weeks, but it gives you a kickstart and maybe you can continue some of your cut backs as the year continues.
How much could you save?
Doing a no spend month can save the average family £586.80 – how nice would it be to be nearly £600 better off by January 31?
That assumes the household cuts back to only essential expenditure like household bills, transport, services like broadband and food.
This is based on data from the ONS showing the average household spend every month is £2,115.20.
No Spend January tips
If you fancy giving a no spend month a go in January then try these tips to maximise how much you save.
1. Plan your budget ahead of time
Before we hit January 1 take some time to analyse your budget. This should involve taking a lot at all of your income and outgoings every single month.
That analysis should include:
- Mortgage/rent
- Utilities bills – gas, electricity, water
- Broadband and TV
- TV streaming subscriptions
- Other subscriptions – such as magazines or audio content
- Essential food
- Travel – including petrol, taxis and public transport
- Takeaways
- Eating out
- Snacks and takeaway drinks
- Days out with the kids
- Clothes
- Hobbies and other expenditure
It’s easy to look at how much your set expenditure, such as utility bills, is as you can just check the monthly direct debit amount.
However where your disposable income is going requires a closer look at your bank account. The good news is that most banking apps now offer a section that gives insights into your spending.
You can check out the categories of spending here and see how much you’re forking out on particular things, such as shopping and eating out.
Doing this can give you an idea of how much you could save in January, which in itself can be a great motivator.
2. Decide on acceptable expenditure
Once you’ve looked at your normal spending, it’s time to decide on the rules for your no spend month and plan out what your spending will be before the month starts.
So you need to figure out what is banned during your no spend month. You can write these rules down, and get as strict as you want.
For example some may set in stone that the meal plan will be follower religiously, with no extra runs to the supermarket at all.
Decide if you can cut back on car usage during the month and walk more, so you only need to fill up the tank a couple of times a month rather than four times.
3. Move money immediately
Once you’ve set the things you will definitely need money for in the month, move the disposable income you’ve decided not to spend this month to a savings account.
Do it as soon as you are paid, so that money is locked away and you’re now committed to the month ahead.
4. Pause subscriptions
As part of your challenge it can be a great idea to boost the potential for savings by pausing some of your subscriptions.
Many subscription services such as Netflix, Now and Paramount+ do not lock you into a full year, so you can pause and restart as and when you choose. This also works with food delivery services such as Gousto and Simply Cook.
While Gousto can be convenient, the cost of the boxes is greater than what you would spend in the supermarket once the initial money off offers stop.
5. Ditch takeaways
Find amazing dupe recipes of your favourite takeaways. This has helped me save £100 a month on takeaways when we recently did a no spend month.
Instead of our usual curry order, we found a recipe online for our favourite dish.
And for pizza we made use of our pizza oven to make tasty restaurant quality pizza in the garden! Our Ooni pizza oven is one of my favourite money-saving kitchen gadgets I’ve ever received (it was a birthday gift).
This is one of my favourite frugal living tips, and the cooking process becomes a bit of low expense fun too!
6. Incentivise yourself with a goal
If you’re finding it tough to stay motivated then it can help to put your savings goal front and centre for the month.
Be very clear what you hope to achieve from this month, whether it’s making sure you have the safety net of an emergency fund or some money towards next Christmas. Maybe you need to pay off your overdraft.
Whatever the reason, remind yourself regularly and have that be your motivation to keep going. Remember, it’s only one month!
7. Plan free fun
A no spend month doesn’t have to mean staying at home every day.
Research free family fun in your area and take advantage of the amazing parks, beaches and town centres in your area you can explore.
The local library is a feast of free fun, with regular events plus of course free books to borrow for every person in the family.
8. Tell friends and family
It’s important to get your friends and family on board with what you’re doing. They can help motivate you and will know not to tempt you with invitations on big nights out.
Get them involved in your planned free fun, or change your plans to dinners in rather than meals out.
9. Delete bank card details from devices
Creating friction from the point where you spontaneously decide to buy something and when you actually purchase it is a really good way to make you stop and think.
The autofill function on your phone, computer and tablet can make you purchase something in a split second before you’ve had a chance to ask yourself if this is a good idea.
So delete your saved bank cards, meaning you would have to manually input them to make a purchase.
This can help you to enact the seven day rule, where you stop and consider every purchase for seven days. This cooling off period often reminds you of your savings challenge and helps you avoid those spontaneous, adrenaline fuelled purchases.
10. Unsubscribe from temptation
Never an hour goes by without another sales email dropping into my inbox. Brands are constantly trying to sell hard to me.
If you struggle to resist the temptation of buying the latest clothes from your favourite brand, or snapping up gadgets in a sale, then unsubscribe from the emails that cause you the most temptation.
Understanding these spending triggers can be really key to squashing a spending habit. Remember you can resubscribe the following month.
11. Use the needs over wants rule
A need is something that is actually vital to your day-to-day life, for example food or shoes (if you have no other shoes).
A want is something that you simply want. It’s another dress in the wardrobe, or another expensive beauty product on a shelf filled with beauty products.
Before you buy, take stock of what you already have in your home by shopping your own wardrobe and make-up collection.
Still struggling to cut back on spending on things you don’t need, you may like these tips about how to stop spending money on clothes.
12. Motivate yourself with quick maths
Sometimes it helps to figure out just how much low value casual spending can add up to over time.
If you really miss your regular coffee then add up how much your order is and multiply that over the days you normally get it.
So £3 every working day for a month adds up to £60. That’s quite a lot of money you could be adding to your savings pot.
13. Plan something fun for Feb
You don’t want February to be a blowout month that ruins your progress made in January.
However it can be motivating to know you have something to look forward to in the following month.
14. Try switching to secondhand
If you do need to buy essential items such as clothes during January, say school uniform for the kids, then consider secondhand marketplaces.
Vinted is an amazing place to get clothes, shoes and toys for kids, often in amazing condition.
This type of saving is a nice boost to your January savings pot.
15. Use the free printable no spend month tracker
In order to keep on track use my free printable no spend month tracker. This is a great way to keep an eye on your progress.
There’s space to tick off every day you manage to stick to the rules, as well as space to list your no spend rules and exceptions. If you do any unplanned spending, you can also record that here.
Grab your free no spend month tracker here:
Final thoughts
I hope this has given you some motivation for having a great no spend January!
You can find more savings tips in my articles on how to save £10k in a year and how to save £5k in a year.
