by Susan Paige
Probably you have participated in one of the emerging challenges. But have you considered taking part in the financial “no spend” challenge? If you haven’t, then it’s high time you include it in your to-do-list.
You have to be ready to cut down on spending even on important goods like gas and groceries. The challenge might not sound useless at first, but the benefits are overwhelming.
You might experience difficulties at the initial process, but as time goes, you will adapt. So how can the no spend help you avoid plunging into debts?
1. Keeps You Motivated
No spend challenge will teach on how to keep yourself motivated. During the period of the challenge, you will learn, or rather adapt to making the minimal expenditure. As a result, when you are low on finances, you will use the same survival tactics you used during the challenge to avoid getting a loan.
2. No Spend Challenge Will Help You Minimize Unnecessary Expenditure
One of the requirements of the challenge is to avoid spending on unnecessary items. You will not pass by the grocery to get tomatoes, yet you have some in the fridge which is nearing expiry date.
Consequently, you will have enough money to spare on other important needs. Alternatively, you will have savings to spend on needs that you would have otherwise borrowed for.
3. You Will Learn How To Stay On a Budget.
As much as it’s up to you to choose a duration for the challenge, we would recommend you try the no spend a month.
Through this, you will learn how to stay on a budget as you await your next payment, especially if your next income takes a month. You will learn how to manage what you have and hence avoid going overboard.
As a result, you will not have to call your friends for soft loans since you already have an outline of how much money to spend on where considering your amount of income.
4. No Spend Challenge Encourages Saving
Can you imagine yourself cutting down your expenditure on unnecessary items? Imagine how much money you can save at the end of that particular period. Then, why should you have to wait to take loans which come with interest and add on your financial woes, just to meet a certain financial need?
Instead, cut down on the number of dollars you are spending on liquor and fast foods and save put that money in a saving account. At the end of the period, you will be surprised that you will not need a loan to settle your child’s school fees or any other need.
Talking of unexpected demands, you can read more here on the leading burial insurance & final expense insurance companies
Put the same energy that you invest in taking part in fun challenges in the no spend challenge, and you will be proud of yourself after that particular period.
You will not only get rid of the unnecessary expenditure, but you will also get the financial motivation that will help you save for future financial obligations. You will not need to ring your bank or any of your friends for a soft loan.
Read more of our financial advice articles today.