I don’t do crash diets, carb-free challenges, or quick weight loss bootcamps. If it’s not sustainable, it’s not for me. I also don’t take part in No Spend January.
What is No Spend January?
As you probably guessed from the name of it, No Spend January is avoiding spending on all non-essentials. Soap, bread, lunch items, laundry detergent–all fine because they’re essential. Going out to eat, travel, impromptu day trips, sporting events, those are all out.
Basically anything that isn’t essential is out. At its best, the idea of No Spend January is a cleanse of sorts, a way to reassess your values. At its worst, it’s an exercise in futility that might be fun to post about on social media, but otherwise has no value.
Why I’m Not Doing It
Here’s why I’m not doing No Spend January and why I probably never will.
Number 1: Value-Based Spending
Value-based spending is a principle I live by and aim to live by forever, no matter how much money I have. Spend only on the essentials and what you deeply value. Try to avoid the rest.
I’ve done very well following this principle. It’s helped me to invest by paying myself first while also avoiding unnecessary spending. It’s been a great way for me to focus on what I value and eliminate the rest as much as possible.
If I were to participate in No Spend January, I’d potentially be going against my values. For example, years ago when my grandfather was still alive, I took him to the Rose Bowl on New Year’s Day.
He was getting up in age and I knew there wouldn’t be too many more opportunities to take him to this game as his health was declining. He’d never been to a Rose Bowl game before and it was kind of now or never.
If I had been participating in No Spend January I would have either had to not go (not a good option) or break the spending challenge on literally day one (also not a good option if I was truly committed).
Value-based spending allowed me to go to the game with him and create an experience I’ll remember forever while the spending challenge would have not allowed me to go or made me feel guilty for breaking it.
Number 2: Sustainability and Purpose
I’m about sustainability. If something isn’t sustainable or isn’t for a greater purpose/mission, it’s not for me. No Spend January isn’t sustainable in my opinion. It’s unrealistic to think that I can continue the challenge into February, March and beyond.
I might be wrong here, but I also don’t see the greater mission to No Spend January. Is it to cleanse myself of my previous years financial sins? To teach me not to spend in the future? To provide a jumpstart to this year’s money goals?
If there’s a clear purpose, I can see why someone would do it. But for me it’s unsustainable and there is no clear reason to do it.
Number 3: Then What?
What happens after No Spend January? Will completing the challenge be the gateway for life changing habits? Is there a possibility that this month of not spending will take my personal finances to new heights?
If the answer is no, then I don’t see the point.
Maybe more importantly, what happens in February and March? Will all that pent up deprivation explode into poor financial choices the next couple of months?
Someone who completes the No Spend January challenge but then far exceeds their budget in February and March has failed and may actually be worse off.
Number 4: Ignores Root Issues
I believe that money issues should be tackled at their root. For example, if someone is not investing enough, a system (like pay yourself first) needs to be set up so that they are able to invest more.
If someone is over-spending on luxuries every month, values need to be reassessed and a budget should be created. The person in credit card debt needs to follow a system like using the debt snowball or debt avalanche to pay them off.
The root issue needs to be addressed, followed by the creation of a system to sustain or stop the behavior. No Spend January ignores the root issues and is just a band-aid for whatever the issue is.
Number 5: You Only Live Once
The month of January is a little over 1/12th of your life. That’s a lot of life. Depriving yourself of anything extra in that portion of your life for the sake of a spending challenge doesn’t make sense to me.
What if you have a group of friends that wants to go on an amazing ski trip in January? You have the money and time but decide not to go because of this challenge. That’s deprivation.
Or if you have an opportunity to take a great family trip that you’d like to go on, but choose not to go because you’re in this spending challenge. You’ve got the means and the time for that as well. Doesn’t make sense to not go.
Number 6: Already Meeting Your Financial Goals
If you’re already meeting your financial goals and engaging in the types of money behavior that you want to, why go to such drastic measures as No Spend January?
You’re already winning the money game and doing what you should do, so why engage in the challenge? I guess it makes sense if you’re looking for a little boost, but short of that, it’s not really helpful.
I believe that people can always improve but that improvement comes with a change in habits, not a crash spending diet.
Conclusion
I’m all for improvement and finding ways to get better. I just don’t think No Spend January is that effective or helpful.
There are so many other things you can do with your time and money that are more productive and useful.
Do you participate in No Spend January or similar money challenges? Do you have a different take on this?
