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Parents Coming to Visit and No Spend Challenge

My parents are finally coming to visit in two weeks. I haven’t seen them in person in almost four years, so I’m super excited to spend time with them. They’re staying for about four days at a timeshare an hour and a half away from us. They decided they didn’t want to stay with us because we have a dog, which could aggravate my mom’s asthma.

Even though we’ll be driving back and forth a lot while they’re visiting, we shouldn’t have to increase our gas budget. My partner drives a lot for work, so high mileage is already factored into our gas allowance. My parents are generously covering the cost of activities and meals, so this trip shouldn’t be hard on our wallet. And we’ll be able to stick to our no spend challenge.

No Spend Challenge for January

Before New Year’s, I saw lots of no buy content in my social media feed, which made me want to do a no spend month. We’ve decided to eliminate all miscellaneous spending and eating out in January. We’re also going to do a pantry challenge and try not to grocery shop at all this month.

We’ve been making our own bread at home and have shelf stable milk on hand, so we won’t have to make any bread or milk runs. Plus, we have plenty of frozen and canned veggies on hand to add some extra nutrition to our meals. All in all, we should save around $800 this month. We’re going to use this money to make an extra $800 principal payment on our mortgage (plus the $2,000 we usually contribute).

I’ve tried to do no spend months in the past with mixed results. I believe I failed because I didn’t calculate how much I could save at the beginning of the challenge, so I didn’t know what I was sacrificing for. Knowing that I could pay off an extra $800 of my mortgage this month definitely motivates me to buckle down and cut out any unnecessary spending.

Considering a Low Buy Year

We’re also considering doing a low buy for the rest of the year. Although we’ve gotten our miscellaneous spending down, I think it’s still too high at $400 per month. We don’t need multiple streaming services or impulse buys like video games and board games. We already have several dozen board games from our childhoods, so I think we’re set on entertainment!

A few years ago when we were saving for a house, we had a rule that we had to side hustle to come up with the money to pay for unnecessary purchases. This rule (which felt more like a game or challenge) helped us save more money and reduce the amount of clutter in our living space.

We both hate how much we have to clean and organize now to stay on top of our stuff. So I think our quality of life was actually better when we were forced to be more intentional about what we bought. We spent less time tidying up and more time enjoying life unburdened by clutter.

I think doing at least a couple of low buy months with guidelines to limit our spending could be beneficial. We want to make sure we’re fully utilizing and enjoying the things we have instead of constantly wanting “more, more, more.” We want to detox a bit from consumer culture and be more grateful for our blessings. I think a low buy could help us achieve this mindset shift.

Is anyone else considering doing a low or no buy year? Let me know in the comments!

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Vicky Monroe

Vicky Monroe is a freelance personal finance and lifestyle writer. When she’s not busy writing about her favorite money saving hacks or tinkering with her budget spreadsheets, she likes to travel, garden, and cook healthy vegetarian meals.

Steps to Avoid Failing Deeper in Debt

by Semify

Debt can be a difficult burden to carry, and it can be easy to feel like you’re falling deeper and deeper into financial trouble. However, there are steps you can take to avoid falling deeper in debt and get back on track financially. Here are some tips to help you get started.

Take stock of your debt. The first step to avoiding deeper debt is to understand exactly what you owe and to whom. Make a list of all your debts, including credit card balances, medical bills, personal loans, and any other debts you may have. Include the creditor, the interest rate, and the minimum monthly payment for each debt.

Create a budget. Once you know what you owe, it’s time to create a budget to help you manage your money and pay off your debts. Start by listing all your income, including your salary, any investments or dividends, and any other sources of income. Then, list all your expenses, including rent or mortgage payments, groceries, utilities, and any other bills you have to pay. Subtract your expenses from your income to see how much money you have left over each month.

Prioritize your debts. Not all debts are created equal, and it’s important to prioritize which debts to pay off first. One strategy is to focus on paying off high-interest debts, such as credit card balances, first. This can save you money in the long run by reducing the amount of interest you pay. Alternatively, you may want to tackle smaller debts first to give yourself a sense of accomplishment and momentum.

Consider debt consolidation. If you have multiple debts with different interest rates and minimum payments, it can be difficult to keep track of them all. Debt consolidation allows you to combine all your debts into one loan with a single interest rate and monthly payment. This can make it easier to manage your debts and potentially save you money on interest.

Seek professional help. If you’re struggling to pay off your debts and don’t know where to turn, it may be helpful to seek professional help. A financial advisor or credit counselor can help you create a plan to pay off your debts and get back on track financially. In extreme cases, bankruptcy may be an option. Under Chapter 7 bankruptcy, certain debts like credit card balances, medical bills, personal loans, and overpayments can be discharged, giving you a fresh start as you move forward.

Consider alternative payment options. If you’re struggling to make your minimum monthly payments, it may be worth considering alternative payment options. For example, you may be able to negotiate a lower interest rate with your creditors or extend the length of your loan to reduce your monthly payments. Just be aware that these options may come with additional fees or costs, so be sure to carefully consider the pros and cons before making a decision.

Cut back on expenses. Reducing your expenses can help free up more money to put towards paying off your debts. Look for ways to save money on everyday expenses, such as by cutting back on dining out, canceling subscriptions or memberships you don’t use, or finding ways to save on groceries. This can mean being more mindful of how you use your money. For example, if you need more space and are considering moving, try to utilize your existing home first. Updating a basement costs around 80% less than buying a bigger home. You may also be able to save money by refinancing your mortgage or finding a cheaper car insurance policy.

Increase your income. Another way to free up more money to put towards your debts is to increase your income. This might involve taking on additional work or starting a side hustle, or negotiating a raise or promotion at your current job. You could also consider selling assets you no longer need or use, such as jewelry, electronics, or even a car.

Be prepared for unexpected expenses. No matter how careful you are, unexpected expenses can arise at any time. According to the New York State Department of Transportation, the average cost of an auto accident ranges from $15,000 on the lower end to $63,000 on the higher end, with most accidents falling in the $30,000 to $40,000 range. To help prepare for these types of unexpected expenses, it can be helpful to set aside an emergency fund.