5 Ways Doing a ‘No-Spend Month’ Can *Seriously* Benefit Your Life

This non-stop purchasing is a common problem among folks seeking advice from Traci Williams, PsyD, a board-certified clinical psychologist and certified financial therapist. “What I've noticed in my practice is people recognizing that they've been overspending; they have been charging things to their credit cards, then having a balance that carries over every month, and accumulating debt,” she explains. The tipping point for a consultation is often when people begin to experience the physical and mental health side effects of financial worries, like anxiety and difficulty sleeping, Dr. Williams says.

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One way people are reclaiming control over their finances and well-being? Practicing no-spend months.

While the exact “rules” vary from person to person, a no-spend month generally involves spending money solely on essentials, such as groceries, housing, transportation, utilities, and other regular, non-negotiable bills, for a full month. Eating out, shopping for new clothes, and splurging on concert tickets or other activities is usually a no-no.

Still, there’s room for flexibility. Twenty-nine-year-old Elyse Lyons, who does a no-spend challenge each January, April, July, and September, occasionally allows for one restaurant meal a week (she’s a single mom, after all) and makes exceptions—and budgets—for birthdays and holidays. “I always say that you shouldn't put aside your goals for the month for one day when you have 29 other days to work on it,” she says.

Regardless of the specific guidelines, setting a goal to not spend unnecessary cash throughout the month can be impactful. Here, challenge-takers share the payoff they’ve seen from no-spend months.

The benefits of a no-spend month

1. It supports financial health

Unsurprisingly, dropping cash solely on necessities can help you take control of your finance—something Jazmine Waller has experienced herself.

Last year, Waller was late on her bills and couldn’t get ahead, “so I decided that I needed to just do a no-spend month,” she says. “I needed to stop spending money so that I could see where my money was going, [and] I would also be able to save money so that I could then start to get ahead in my finances, which was to pay off my past-due bills that I had and then also to start paying off my debt.”

She canceled unnecessary subscriptions and got rid of other services she could live without. For nine no-spend months, she purchased nothing outside her regular monthly bills. She paid in cash so she'd be more likely to stick to her weekly budgets. And she also looked at ways to bring in more income.

In that year, Waller says she paid off about $17,000 of debt.

Along with people who are experiencing debt, Dr. Williams says people who make enough money on paper but are finding themselves living paycheck to paycheck can also benefit from a no-spend month. “By engaging in this practice, they're being more conscientious of what they're doing with their money,” she says. “And that can have lasting changes.”

“By engaging in a no-spend practice, you're forcing yourself to think outside the box, which can be really helpful for your finances.” —Traci Williams, PsyD

2. It reduces stress and financial anxiety

In paying off so much debt in such little time, Waller has found herself in a better state, mentally and emotionally. She’s not alone: A 2023 study¹ of nearly 23,000 adults found that financial worries are significantly linked with psychological distress.

“All of the credit card debt is paid off, so that was a huge benefit, [and] not receiving phone calls from being late on my bills—I think we don't talk enough about how that in itself is stressful,” Waller says. “Getting a phone call or a text message or an email that you're late on a bill is even an added stress, and so not receiving those has been just amazing. I'm not running away from my phone. I'm not running away from 1-800 numbers.”

The challenge also gives you the opportunity to exercise some control over your money, as opposed to your money having control over you—and that can be really empowering, according to Dr. Williams.

Prior to her no-spend months, Waller says she was “terrified” to check her bank account on a Monday and see all of the money she really spent over the weekend. But with a rule to only devote money to non-negotiables (and use cash solely), she knew her balance would be exactly as she left it on Friday.

Her anxiety calmed, and after her first successful no-spend month, Waller felt confident that she could do it again and achieve any financial goal she set with a little time, patience, and discipline. “I definitely began to feel less stressed, more confident, more sure of my finances and what I was spending,” she says. “The stress levels dropped dramatically.”

3. It prompts you to make the most of what you have

Back when Lyons first heard of no-spend months about seven years ago, she had her sights set on paying off her student loans before she turned 25. If one of her loans had just a few hundred dollars left, she’d do a no-spend month and knock out the balance in one go.

Today, Lyons sees her no-spend months as opportunities to save up for vacations and house projects and pay off debt, like her mortgage. But there’s a deeper motivation, too. “When I first started, it was very much like, ‘I can't spend money because I don't have money,’” she says. “Now my mindset is, like, ‘I very much do have money. I have an abundance of things already in my house. I have a bookshelf full of books. I have a closet full of clothes. I should be using those things to the best of their ability before I buy new things.’”

She’s also realized that there are libraries, community centers, and other public resources available to help you save cash without feeling FOMO over the latest viral hobby, like reading A Court of Thorns and Roses or playing pickleball.

“I think [no-spend months] are a good challenge to kind of take a step back,” Lyons says. “When life gets busy, it gets easy to automatically purchase whatever you need, but [no-spend months] get you to take a step back and just appreciate it and be creative sometimes.”

4. It encourages you to get creative with your free time

“By engaging in a no-spend practice, you're forcing yourself to think outside the box, which can be really helpful for your finances,” Dr. Williams says. “Let's just say you're used to going out every Friday night or to brunch every Saturday morning. If you're deciding to be more intentional with your money and cut back, you may then ask yourself, ‘Okay, well, what else can I do on Friday nights? What else can I do on Saturday mornings?’ That can create a whole new experience for you in your life.”

Lyons has found herself focusing on creating unique memories that don’t cost an arm and a leg. She might take her family to the grocery store for a special candy, then have a movie night at home. “We're a lot more intentional about making that quality time together, rather than just like, ‘Oh, we're gonna go spend money at the trampoline park,’ or ‘We're gonna go spend money at all these places,’” she says. “I think it's forced me to kind of get creative with the time that we spend together.”

5. It reduces your environmental impact and instills intentional purchase practices

Be real, you’re probably going to wear the low-quality, matching activewear set an influencer posted just a handful of times before you toss it. But all this waste adds up: In 2018 alone, Americans sent more than 9 million tons of clothing and footwear to the landfill, according to the U.S. Environmental Protection Agency.

Compounding the problem, the global fashion industry produced about 2.1 billion tons of greenhouse gasses (which trap heat in the atmosphere and warm the planet) that same year. That’s about the same amount of emissions produced by France, Germany, and the U.K. combined, according to a 2020 report published by McKinsey & Company in partnership with Global Fashion Agenda. Resisting the temptation to make these fast-fashion purchases, even for just a month, can curb your contributions to this environmental problem.

There are long-lasting effects of a no-spend month, too. Over the years of practicing no-spend months, Lyons says she’s become less of an impulse shopper. She’ll borrow items from friends if she needs them only once. And when she does purchase a non-essential item, she tries to shop secondhand. She finds herself enjoying and using her purchases more than she did before she practiced no-spend months, too. “I think when you get stuck in that consumerism cycle, you're like, ‘Oh, well, that was disappointing,’” she says. “You're always on to the next thing to purchase, rather than truly appreciating a purchase.”

You can see this happening in real-time with viral products; Lyons says she’s already seeing those “must-have” Stanley cups in thrift stores. To her, that’s a clear sign that “maybe the marketing on them is too good, but the product itself isn't that great,” she says.

“I have an abundance of things already in my house. I have a bookshelf full of books. I have a closet full of clothes. I should be using those things to the best of their ability before I buy new things.” —Elyse Lyons

Tips for a successful—not stressful—no-spend month

While giving your finances a hard reset with a “no excuses” no-spend month sounds like a good idea, Dr. Williams encourages you to avoid making drastic changes, especially if it's your first challenge. “I would encourage [people] to not restrict themselves too much, because when we restrict ourselves too much, if we tighten our belt too much, once that belt comes off, then what?” she says. “How is your behavior after the no-spend going to be?”

Instead, designate a certain amount of money you’re able to spend once you’ve taken care of your essentials, and try your best to stick within that budget, Dr. Williams suggests. Alternatively, you can do a no-spend month with restrictions solely on one type of purchase, like takeout or clothing, Lyons adds. “Don't get wrapped up in perfection—you're gonna spend money. It's gonna happen,” Lyons says. “If you did slip up and purchase something you didn't mean to, [ask yourself], ‘Why? Was it habitual or was it just something I didn't plan for?’ And use that information to go forward into the next month.”

Make sure you share your challenge participation with your inner circle—friends, family, roommates, and anyone else who influences your spending habits. That way, they know what to expect if you, say, don’t order anything but water at the bar, and can also hold you accountable, Dr. Williams says.

Similarly, it’s smart to unsubscribe from shopping newsletters, unfollow the influencers who are constantly trying to convince you to buy the latest gadget, and steer clear of shopping centers where you may be tempted to make unnecessary purchases, Waller suggests. “I consumed a lot of information or content where it talked about saving, the importance of being financially free, making sure that you have savings just in case anything happens in case of an emergency…which also helped me to stay encouraged,” she says.

Throughout the month, document your progress, highlighting your calendar each day you were successful with the “no spend” test, and write down what you’re spending money on so you can account for that budget the next time you try the challenge. As the month comes to a close, Dr. Williams suggests making a plan: What changes do you want to continue even when the challenge ends? This recap and reflection time will help you make decisions that support your financial and wellness goals long after your no-spend month comes to an end.