In January 2022 I made one financial goal for the year, and kicked it off in a big way by committing to a month-long No Spend Challenge.

A No Spend challenge is choosing a specific period of time to spend as little money as possible, limiting purchases to just essentials such as bills and groceries. Some people try a no spend weekend or even a year, but I chose January because it is usually a quieter month socially and a good time to reset after Christmas and the New Year.

With the cost of living rapidly continuing to rise, being mindful of spending feels more important than ever. Everyday essentials like food, energy and transport cost significantly more than they did just a few years ago, which leaves less room in the budget for saving or flexibility. A no spend challenge can help create breathing space, offering a practical way to regain control, reduce financial stress, and make conscious decisions about where money is really going.

Other reasons for taking on a No Spend Challenge include:

• Getting back on track after a period of excess spending (ie. Christmas and New Year),
• Stopping impulse buys and being more mindful with money,
• Kickstarting savings,
• Paying down debt,
• Rethinking the relationship with spending.

My goals included all of the above, particularly building savings and breaking that automatic impulse to buy things I didn’t really need. It worked brilliantly, and changed the relationship that I have with money. 

Why I am doing another No Spend Challenge in 2026

I have BIG goals this year, so I have decided to do the same again. The lessons from that first challenge have stayed with me, but I know I can go further. This time, the focus is not just on saving money for a single month, but on building stronger habits that support my long term plans. I want to be more intentional with every pound I spend, reduce mindless purchases, and create more space in my budget for the things that truly matter. This challenge is a reset, a way to realign my spending with my priorities and set a strong financial tone for the rest of the year.

My No Spend Challenge rules:

• Money can (and should!) be spent on rent, bills and essentials like groceries, toiletries and petrol. 
• Groceries must be planned in advance, with an effort to use what is already in the cupboards, fridge, and freezer before buying more and only buying fruit, vegetables and protein to supplement. 
• If I am working in London, a packed lunch needs to be made in advance. There is no spending in coffee or sandwich shops.
• Should I need to go somewhere, I am allowed to spend money on bus fare, but not on a taxi unless it is an emergency (Note: I never learned to drive, hence why I am including this).
• I am not allowed to spend money on non-essential items, including new clothes, books, takeaways, snacks, meals out, taxis, drinks at the pub etc.
• Subscriptions and memberships must be reviewed, and no new subscriptions are allowed during the challenge. Any unused or unnecessary subscriptions should be paused or cancelled where possible.
• No online shopping or browsing “just in case.” Items can be added to a wish list to revisit after the challenge ends, but not purchased during the month.
• Social plans should prioritise free or low cost activities, such as walks, meeting at home, or free events, rather than spending money to socialise.
• Any unexpected or emergency spending must be logged and reviewed so I can learn from it rather than feel discouraged.
• Gifts are not purchased during the challenge unless absolutely necessary, in which case they should be planned for in advance and kept within a strict budget.

Tips if you’re thinking of trying a No Spend Challenge 

Your No Spend Challenge rules should be tailored to what works for your lifestyle and savings goals. If you’re inspired to try your own no-spend month this year, here are a few ideas:

Identify the difference between your wants and needs: Needs are the essentials required to live and function, such as housing, utilities, basic groceries, transport, and necessary healthcare. Wants are everything else, including convenience purchases, impulse buys, entertainment spending, upgrades, and items bought out of habit rather than necessity. Taking time to pause before each purchase and asking whether it solves a real need or simply provides a short term want can be eye opening. This process helps build awareness around spending triggers, reduces impulse decisions, and makes it easier to align money with long term priorities rather than short lived satisfaction.

Track what you normally spend before you start. Tracking what you normally spend before you start gives you a clear picture of where your money is actually going. It is easy to underestimate small, regular purchases, but writing everything down can reveal patterns you may not have noticed before. This awareness makes it easier to set realistic rules for your no spend challenge and identify the areas where cutting back will have the biggest impact.

Meal plan and buy groceries in advance: Meal planning and buying groceries in advance removes a lot of the temptation to spend. When meals are planned and food is already in the house, it becomes easier to avoid takeaways, convenience foods, and last minute purchases. It also helps reduce food waste and makes grocery spending more intentional throughout the challenge.

Find free or low-cost alternatives for entertainment. Finding free or low cost alternatives for entertainment helps prove that enjoyment does not have to come with a price tag. Walks, library books, free community events, home movie nights, or catching up with friends at home can be just as fulfilling. Shifting focus away from paid activities encourages creativity and helps break the habit of spending for entertainment.

Share your goals with friends or family for accountability. Sharing your goals with friends or family adds an extra layer of accountability. When others know what you are trying to achieve, it can make it easier to stay committed and say no to unnecessary spending. Supportive conversations can also lead to encouragement, motivation, and even shared low cost activities during the challenge.

Ultimately, a No Spend Challenge is not about perfection or restriction, but about awareness and intention. It is a chance to pause, reflect, and make deliberate choices about money in a way that supports both current needs and future goals. Whether it is your first time trying a No Spend Challenge or a return to one that worked before, even a short period of mindful spending can create lasting change and a stronger sense of control over your finances.

And I’m so excited about it!

What about you guys? Are you undertaking a challenge in January 2026?