Are you up for a formidable test? Picture this – a spending freeze challenge. Can you pull it off? You only cover your bills and groceries. Nothing more! Staying on top of your monthly income and expenses is not a walk in the park; but it’s entirely achievable! The spending freeze month is a fantastic strategy to get there. It not only brings into light the reality of your actual expenditure over a period but also offers the added benefit of a healthier bank balance!
WHAT DOES A 30-DAY SPENDING FREEZE CHALLENGE MEAN?
In a spending freeze challenge, you pledge not to splurge on any extras or nonessentials over a predetermined duration. Thirty days is generally an ideal duration to gain insight into your spending habits while also helping you stash away some spare cash to use as you please.
You will, of course, need to cater for essentials such as groceries, bills, and fuel. However, if it’s not a necessity, it stays on the shelf.
Ready to start? Here are 5 simple steps to ace a spending freeze month:
1. DEFINE YOUR GOAL
Any endeavor is easily tackled with a clear goal. Having a tangible objective motivates you to persist when things become challenging.
So, what’s your intention behind the 30-day spending freeze? Is it to accumulate extra cash for a new house down payment? Or perhaps rein in on reckless spending? Could it be an attempt to clear debt or enhance your credit rating? Or are you just aiming to save up for a small getaway or test your self-control? As long as it’s meaningful to you, any goal is ideal.
Once you outline your goal, keep it visible for times when your motivation wanes.
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2. DEVELOP GUIDELINES
Once you’ve settled on the month for your spending freeze, it’s time to chalk out some rules. These norms will vary from person to person due to distinct family dynamics and household structure. Essentially, the rules should outline what an ideal spending freeze month looks like to you. Assess your home expenditure and distinguish between essential and non-essential items.
The guidelines should be feasible. You could even display a list of essential and non-essential items in a place frequently visited like the kitchen or front door.
3. DRAW UP A BUDGET
Segregate your budget into different expense categories based on their necessity (like groceries and fuel). This could be an excellent opportunity to discuss why you’re allocating certain amounts to each category. Evaluate previous month’s expenses to set a suitable starting point. You may even find room to reduce your budget for some categories. For instance, if you earmarked $500 for groceries but only spend a steady $250, cut your grocery budget to match your actual spend.
Once you’ve accounted for all the essentials, pay attention to the remaining money. What’s your plan for this surplus? This needs to be determined.
4. PLAN YOUR MEALS
A positive outcome of a spending freeze challenge is that it helps clear out your home’s food stock. Browse through your pantry and refrigerator, discard any expired items, and plan your meals based on the remaining inventory.
Plan your meals for each day of the week. If you have extra time on Sundays, schedule more time-intensive meals for that day. Preparation is key here. Knowing your schedule can assist you in planning and sticking to the rules, thus avoiding unplanned dining out.
RELATED: 5+ Best Meal Planning Ideas to Save More Money
5. INVITE FAMILY AND FRIENDS TO PARTICIPATE
A spending freeze can seem intimidating if faced solo. Sharing it with family and friends or motivating them to participate ensures an accountability network. You can exchange tips, assurances, or even constructive criticism.
Sharing your journey on social media or online forums ups the accountability game. Broadcasting your achievements and learnings may just be the push some people need to stay committed.
Have you ever participated in a spending freeze challenge? What strategies worked for you?
