2025 is nearly here, but have you met your savings goals?
Whether you are on track or need to re-evaluate your personal finances in the New Year, consider a no-spend January.
Cutting non-essential spending for a month might sound scary, but the results are worth it. Keep reading to learn more about how to save money in January with this extreme challenge.
No-spend January is a financial challenge in which you cut all extra spending for a month. You pay your bills and buy essentials like food and toiletries.
That’s right. Non-essential spending on clothes, going out and even coffee is forbidden until February 1st!
Now you know what happens in a no-spend January, you might wonder why individuals put themselves through a month of minimal comfort.
Going a month without non-essential purchases sounds tough, but it is an excellent way to develop healthy money habits and start living below your means again. As you go without, you realise you may not need to purchase clothes or home decor every week.
Many who finish no-spend challenges continue their new habits once the month ends. Over time, this leads to significant savings and a healthier relationship with impulse control and emotional shopping.
Plus, the savings can be significant. For example, if you spend £50 on non-essentials every week, in one year, you will have spent £2600. It adds up quickly!
If you are curious about saving money, changing your habits or simply want to challenge yourself, a no-spend month could be right for you.
However, it might be a big adjustment if you have never used a budget. In this case, you could start with a simple New Year’s budget or low-spend January, where you can still buy a few non-essential items.
Realistically, if you are interested, it is a sign you should give the challenge a go. After all, there is never a downside to saving money!
Whether you want to boost your January savings or try out a no-spend challenge, here are some tips and tricks to help you make it through the month.
You should also keep developing your personal finance knowledge to build more healthy money habits. Why not get started today?
How Do You Clear Overdraft Debt?
A Guide to Managing your Money: Repaying Multiple Lenders
Polar Credit: A New Way to Borrow
Check out our other great content in our Info Hub, with articles about the different types of credit products, money management tips and help with saving money!