Does No Spend November really make sense? Here’s what you need to know.
The personal finance world has a plethora of strategies and challenges to reduce spending, avoid debt and increase savings. No Spend November is an attempt to limit spending outside of essentials such as rent, mortgage, groceries and health care. It also includes bills and gas. Consumer finance and budgeting specialist Andrea Woroch explains. The idea is to avoid spending on unnecessary items during the holiday season, which can lead to debt. Woroch said that some people might do this in order to save for holiday gifts and expenses, while others could do it simply to reduce the wasteful purchases which are inevitable at this time of year. Retailers are increasing the pressure on consumers to buy more as we approach the holiday season. No Spend November helps consumers resist the temptation and avoid impulse purchases.
“No Spend November isn’t actually about spending nothing — it’s about only spending on necessities and avoiding discretionary spending,” said Bobbi Rebell, a certified financial planner and personal finance expert at CardRates.com. No Spend November is a great way to resist the temptation to spend money. It helps consumers avoid impulse purchases and only buy necessities. The same goes for planned social activities.”
That said, the extreme level of commitment to saving that a true No Spend November requires comes with potential downsides.
Here’s how ‘No Spend November’ can backfire.
“It can feel like a crash diet but with money instead of food and drink,” Rebell said. Even if you adhere to the plan, you may feel deprived and depressed. Just like with a diet, you can quickly lose all the progress you’ve made when the month of controls wraps up.”
After feeling so deprived, many people overcompensate once the challenge is over. “Restricting yourself for an entire month during a time when there are many temptations, could lead to burnout and a buying frenzy in which you end up spending even more when December rolls around,” Woroch noted. There could even be psychological effects, such as rewarding oneself for spending less than usual by buying something they don’t really need.
“I think people could also fall into a bit of a depression if they were to not spend any money outside the essentials as it could mean missing out on joyous occasions with the people you care about like going out to a holiday meal with friends or catching a holiday show with a family member,” Woroch said.
Although you don’t have to spend a ton to enjoy this season and a simple budget can help keep things in check, being too restrictive has the potential to backfire if you aren’t prepared to deal with all the implications.
“It can also be tough on relationships if you constantly turn down social invitations that cost money,” Rebell said. It’s a delicate balance. Staying home can make you feel lonely and isolated, which is especially tough in the holiday season.”
Focusing your spending cuts on one particular month may lead to unnecessary misses as well if you strictly hold yourself to the pledge.
“You may end up saying no to something that is truly once in a lifetime like attending a friend’s destination wedding or seeing your favorite band live in concert,” said Julien Saunders, co-author of “Cashing Out” and co-host of the “Rich & Regular” podcast.
The choice of month in particular could also be an issue.
“November is an especially tricky time for a no-spend challenge, as some of the best shopping deals can be scored during Black Friday and other retailer-specific sales this month,” explained Jack Howard, the head of money wellness at Ally Financial. Cutting back on non-essential purchases before the busy holiday season can cause you to miss sales that offer you better value for your money. You could experience shipping delays if you wait to order late in the holiday season. This could result in gifts not arriving in time for Christmas. You can buy everything you need for the holidays — gifts, decor, wrapping paper, etc. — with your two last paychecks in December. Woroch explained that by spreading your purchases out over November, you can better manage your cash flow. Waiting until December can cause you more stress. Plus, stores are busier so the whole shopping experience is more stressful. Plus, stores are busier so the whole shopping experience is more stressful overall.”
Are there any real benefits to ‘No Spend November’?
“No Spend November is a powerful way to boost your savings, reset your spending habits, and figure out what’s truly essential,” said “Crush Your Money Goals” author Bernadette Joy Cruz Maulion. Think of it as an opportunity to be more aware of where your money is going. It’s also a great way for you to start saving money or achieving your financial goals, without feeling deprived. It’s inspiring to see that small changes can result in big wins!” Woroch said that November has become a month full of sales, causing a frenzy in which people spend money they don’t need to. Committing to a “no-spend” challenge throughout November will help you cut down on unnecessary spending and avoid debt. No Spend November is a great tool to help people who are in debt avoid being caught up in holiday spending, increasing their balances and paying more interest. “It gives you a feeling of control, and it makes you more aware of your finances,” Rebell said. She added that the challenge also creates an obligation to wait before making larger purchases. If we want something after November, it means we really want it and that may be worth our money. It’s a way to slow down the buying process, and be more mindful and present with your spending. No Spend November is a great way to realign your spending and to invite you to think about the reasons behind every purchase. Howard explained that this can be a good reality check for consumers to identify what they really need. Being hyper-aware of where you’re allocating your funds opens the door to resetting your financial values, goals and mindset. Woroch says that most people won’t be able to stick to a “no-spend” month, especially during the holidays. It’s important to create a realistic budget that includes all of the seasonal expenses and purchases you will likely make. Cruz Maulion suggested that if the idea of a ‘no-spend’ month seems too extreme, you could try ‘Low Spend Novembre’. Choose one or two areas of spending to concentrate on. For example, you could swap Uber Eats with cooking together with a friend. Or postpone Target runs until December 1. Set a weekly savings goal and challenge yourself to achieve it. Whatever you choose, make it your own!”
Alternatively, try a no-spend week or two in November to cut back on wasteful purchases. You can also commit to no-spend three weeks in a row to take a break during Thanksgiving. Rebell recommended that you consider a no-spend day every week. “You won’t miss out on any sales and you can often put something on hold so you generally won’t have issues with things selling out but it will help you ‘hit pause’ and be more aware of your spending.”
She emphasized that a “consistent and realistic” strategy is more likely to set people up for long-term success. There is no one-size fits all solution. You can use many different strategies. She also suggested implementing other forms of mindfulness like meditation and figuring out which methods keep you most engaged. We Need Your Support
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“This forces you limit your spending, and stick to the budget you have set for gift-giving or other purchases,” Woroch said. If you have debts leading up to the holiday season, but do not want to commit to the no-spend challenge you can use a balance transfers card to buy yourself time. This will allow you to make it through the season with minimal interest charges. You can then commit to a month of no-spend in January to allow you to pay off your balance before the interest-free period ends. Woroch advised that people should think of less expensive alternatives to buying gifts for friends, colleagues and other loved ones. Bake your famous cookies or offer services that you are good at, such as taking family photos, if you have a photographic skill. Or just spend some time together.
