Are you fooling yourself into thinking that your “no spend days” are actually improving your finances? You might be.
All over the internet, people are posting their “no spend days” and challenges. But is it really doing them any good in the long run?
What is a “no spend day”?
A “no spend day” is a day when you don’t spend ANY money.
Simple and easy to determine, right?
If you don’t go out and buy stuff, but save money or invest money that day, are you still spending money? Yep.
The allure of “no spend days”
In theory, if you’re trying to reduce your spending, then “no spend days” will help you get there. I myself was fooled by the idea of “no spend days” a while back, I figured if I had a lot of “no spend days”, then I was doing better financially. I wasn’t.
Sure your weekly spending looks much better with lots of no spend days in it, but it might not really make a difference to your finances.
Why “no spend days” can fool people
If you assume you’re doing great just because you have some “no spend days”, then you just might be fooling yourself. It doesn’t really matter if you have 5 “no spend days” each week, if you’re not actually spending less money overall.
It’s not difficult to shove a week’s worth of spending into a couple of days, I do it all the time since we only have one car. The only way to actually benefit from “no spend days” is to not spend that money at all, not even on a different day.
How to know you’re not being fooled
The easiest way to know for sure that you’re not being fooled by “no spend days”, is to track your spending. If you normally spend $600 a week for everything, then you can tell if that amount is changing in relation to your “no spend days”.
If you’re still spending the same amount as usual, but have 4 “no spend days” every week, then you’re just fooling yourself if you believe you’re spending less.
Another way to know if you’re being fooled, is to check out your savings and investment (including retirement) accounts. Are they growing as your “no spend days” are increasing? If they are, then you must be contributing more to them because you are spending less money.
How to benefit from deliberate “no spend days”
You could immediately put that money into your savings account or into an investment account. Dollar for dollar what you would have spent. That way, you can watch your savings grow.
You could also create a sub account for “no spend days” to really see how much you’re benefiting from not spending on those days.
Don’t spend the money on another day, meaning don’t shove all your spending into a few days to fool yourself.
Pay attention to what you’re doing and why you’re doing it. It’s your money, it’s not going to manage itself.
Note: I mention “no spend days” in my weekly spending posts, but not because I’m proud of myself and actually think I’m improving our finances. I only do it because I didn’t buy anything that day (I don’t count investing and saving though) and don’t want to have missing information in my posts or confuse anybody.
What do you think about “no spend days”?
Image Credit: http://www.flickr.com/photos/daviddmuir/2125697998/
I’m 100% with you. I don’t put much faith in them because in most cases you’re just delaying the spending you would be doing regardless. Look at food: Yes, you can avoid spending money for a week or two on food, eating up all the food in your pantry and freezer, but eventually you’ll need food…and you’ll want to re-stock your freezer and pantry again as well.
Money Beagle recently posted..Why Aren’t People Talking About These Early Mortgage Payoff Considerations?
Great example using food.
Jen recently posted..Jen’s Sexy Lust List
Agreed. Maybe this is a good strategy for the extreme impulse shoppers (those who go to the convenience store or vending machine and spend $10 a day on unnecessary things), but it’s not a sound financial fix in the long run.
Stephanie @ Empowered Dollar recently posted..Do You Need a Vacation from Money?
It can help with the daily spenders, especially with coffee, meals out and other stuff.
Jen recently posted..Where Did The Dough Go? #69
Same argument as those stupid “gas boycott” days. What’s the point if you don’t buy gas Tuesday if you just buy Wednesday? You spent the same net amount on gas.
PK recently posted..How Much of the Bad Employment Situation Can Be Blamed On Baby Boomers?
Haha, exactly.
Jen recently posted..Net Worth Update~ September 2012
As Stephanie mentioned, I think it depends on the type of shopper you are. If your problem is stuff like clothes shopping, you likely won’t benefit much from no spend days since you’ll probably balance it out on other days. I think it helps more with the people who end up buying $5 lattes and fast food everyday unless they have something like no spend days to keep them accountable.
Modest Money recently posted..Guilt Induced Frugality
Totally agree with you.
Jen recently posted..August 2012 Goals—Review
Great, great point! I’ve never practiced them myself, but I feel like the whole idea of depriving yourself for one day may just lead to going on a shopping spree the next. We have accidental no-spend days, but that’s about as far as we go.
femmefrugality recently posted..Is Your Money in the Stars?
Yep, the whole financial deprivation and bingeing thing happens to me.
Jen recently posted..September 2012 Goals
I don’t actually try for no spend days-if they happen, it’s great and I’ll report them. This last few weeks I’ve been spending more money but I notice that for the most part it was budgeted for or planned. That’s what I really care about-if I’m spending money is out of a fund that was set aside for that? (Like Christmas or date night)
bogofdebt recently posted..Spending Recap 9/2-9/9
Budgeting and planning for spending is great, especially when compared to not budgeting and planning for anything…which a lot of people do.
Jen recently posted..Where Did The Dough Go? #70 (Adios T-mobile, Hello pre-paid?)
I don’t get documenting no spend days either, at this point in my life, but when I worked downtown it may have benefited me because back then I would spend money on breakfast, lunch and parking every day. And if I had implemented no spend days, I would have been forced to have breakfast at home and bring my lunch to work, which would have saved money over the course of the month.
Tackling Our Debt recently posted..9 Ways to Deal with Financial Stress
No spend days might work best for those who spend money on consumable goods every day. They really add up fast.
Jen recently posted..Sublime Saturday Assemblage #35
When I first did a spending fast and even recently when I’ve had a few NSD’s I was just pooling all of the spending on certain days. But then last month when I challenged myself to have TEN in a month there were a few invitations I had to turn down in order to have the no spend days. So I did end up saving that way. I definitely think they have their benefit, but it’s a process. Thanks for the RT today!
L Bee and the Money Tree recently posted..Five Most Common Money Nightmares
They can be beneficial, but it’s important for us to pay attention to make sure we keep on track. Welcome for RT.
Jen recently posted..Getting The Best Deal on Large Purchases
Ah, I totally know this. I’m guilty of spending more on the days I spend if I have no spend days. It’s so much more noticeable, though, when someone else tells you to take a look at yourself and make sure this isn’t what you’re doing. Though, I think the one thing that the no spend day’s do help with is conserving gas. Rather than going multiple places over many different days, going to all the places in a well organized manner can help some.
Daphne @ Making Home Your Business recently posted..Makeup Brush Giveaway!
Great point Daphne. If I was to spread out all of our spending, I would probably spend a lot more on gas. 😉
Jen recently posted..Where Did The Dough Go? #71
No spend days can be great if you are truly not spending on things you don’t need. You’re right about tracking everything. That’s really how you know if you are improving your finances or not. If you spend your whole paycheck on the day you get it, you might have quite a few no spend days because you’re broke!
Kim@Eyesonthedollar recently posted..The Low Income Clinic Experiment
Haha, I do this sometimes. I like to take care of our bills and large expenses on pay day. Most pay periods…almost the whole check is gone after the 1st or 2nd day.
Jen recently posted..Jen’s Sexy Lust List
I really have to hold back when I see people bragging about their no spend days. I just don’t get them. If I need gas for my car and I wait until Wednesday instead of Tuesday, did I really accomplish anything. I think spending habits are like eating habits – you’ve got to set a limit and practice moderation.
My Money Design recently posted..Practicing Entrepreneurship the Fraidy-Cat Way – Using Your Job
Everything in moderation. 😀
Jen recently posted..Where Did The Dough Go? #69
“No spend” days/weeks always seem like gimmicks to me. We feel good because we didn’t actually stop at the gas station, go to the grocery store, etc. But we probably still consumed the same amount of food and burned the same amount of gasoline. If your consumption level didn’t decrease, then it’s a mirage. Spending $10 on groceries every day is the same as spending $20 every other day.
S. B. recently posted..Investment Checklists
Exactly.
Jen recently posted..Net Worth Update~ September 2012
I’ve got to agree that I’m not a big fan of no spend days because whenever I put that limitation on myself, I want to spend ever more! I want what I can’t have! So I just budget and make good financial choices instead.
I think a lot of us have the same problem when we deprive ourselves.
Jen recently posted..Where Did The Dough Go? #70 (Adios T-mobile, Hello pre-paid?)
To me no spend days are about not spending on ‘wants’ – non budgeted items. They’re nothing to do with buying groceries or petrol (gas) – both needs.
laura @ no more spending recently posted..Travel Spending: Cascais 2012
It’s always good to be able to separate needs from wants.
Jen recently posted..Getting The Best Deal on Large Purchases
I think they can be misleading in a lot of cases. I don’t try for no spend days but instead try to limit my monthly goals. It can be good if you know you have something coming up and just decide NOT to buy it, though! That’s even better than a no spend day imo.
Michelle recently posted..My Trip To The Mile High City — Part 1
Deciding not to buy something all together is way better than just delaying the purchase.
Jen recently posted..Where Did The Dough Go? #69