Jonah JacobsTo say that 2020 was a down year would be an understatement. COVID-19 negatively impacted the world in more ways than one, and it left many with big hits to their bank accounts.
The pandemic may have you wondering whether or not this holiday season will be a dud. Will you have enough cash to buy gifts for the holidays, or will you sit on the sidelines?
The former can be your reality, even if COVID-19 caused job or income loss. How? By doing a No Spend November that can help you build that holiday budget, even at the last minute.
What Is “No Spend November”?
As its name suggests, a No Spend November is where you don’t spend money during the month. Obviously, you’ll spend on necessities, but any luxuries or non-essential items are out the window in this quest for last-minute savings.
What can make No Spend November so challenging? The fact that it comes when sales are plentiful, and a need or desire for spending tends to fill the air. Follow these tips, though, and you can make it through the month with willpower and discipline.
How To Do a No Spend November
1. Make a list of necessary expenses.
This list will include everything you must spend during November to survive and avoid ruining your credit or getting evicted, such as:
- Rent or mortgage
- Utilities
- Groceries
- Healthcare
- Insurance
- Childcare
- Internet
- Cell phone service
- Car payment, gas, and any other transportation costs
- Pet supplies
- Student loan debt, credit card payments, etc.
2. Make a list of unnecessary expenses.
With your necessities identified, it’s now time to list what you will not spend any money on, such as:
- Eating out
- New clothes
- Travel
- Entertainment
- Non-essential shopping
- Recreation
- Hobbies
- Personal care that’s not essential, such as nails
It’s worth noting that these lists are entirely yours. You don’t have to follow them to the T, although the stricter you are, the more money you’ll save for December.
3. Make a savings goal.
By only paying for necessities, you’re going to be saving a lot of money. How much money do you want to keep, though?
Look through your bank and credit card statements to see how much you usually spend on luxuries and impulse purchases. Get an idea of what you’ll save if you stick to a No Spend November. Then, come up with a savings goal for the month, so you have something definite to shoot for.
4. Make a spending goal.
Let’s say you vow to save $500 during No Spend November. What will you do with the money?
In the past, it may have been an easy call to put it towards holiday shopping. With COVID-19 still hanging around, however, the uncertainty may push you to put those savings into an emergency fund. Again, it’s up to you.
5. Plan for the month.
You’ll be more likely to reach your savings goals by planning ahead. For example, within eating out removed from the equation, you’ll need to plan your meals so you can stock up on groceries and avoid any last-minute temptation. With recreational costs eliminated, you can search online for free ideas for having fun. And so on.
By planning, the thought of not spending money on luxuries in November won’t seem as harsh. It’ll prep you for what’s to come.
6. Track what you spend.
Whether it’s daily or weekly, keep tabs on what you’re spending. You can use a budgeting app to do so or simply write everything down in a notebook.
As you start to see savings, it’ll motivate you to continue. Who knows? You may stick to this no spend strategy well beyond November to keep even more cash in your pocket.
Bria Ciocca
Mark Luigi Dacumos
