The “Dry January” of Spending: How About a No-Spend Challenge?

Michelle Francis
Jan 1
3 min read

If you woke up on January 1^st with a spending hangover, you’re not the only one. According to a 2025 Harris Poll, nearly half of Americans who plan to spend on holiday gifts or travel (47 percent) expect to go into debt to do it.

Just as you might be swearing off the cocktails for Dry January, you might consider swearing off the plastic as well and trying out a new trend: a no-spend month. Think of it as the “Dry January” of your wallet: a short-term reset that helps you notice habits, build awareness, and start the year feeling more in control (and less like your credit card smoke-trailed through the holidays).

Before you click away from this post, let me assure you that a no-spend challenge isn’t about deprivation. It’s about intention. And honestly? It can be kind of fun - especially if you treat it like a game instead of a punishment.

What Is a No-Spend Challenge?

A no-spend challenge is exactly what it sounds like: for 30 days, you commit to buying only true necessities and pressing pause on everything else. “Needs” include things like groceries (the actual staples, not the artisanal dessert that mysteriously lands in your cart), medications, household essentials, housing costs and utilities, gas, and anything required to care for kids or pets. Beyond that, the usual culprits - impulse Amazon purchases, last-minute takeout, and those Target “just grabbing toothpaste” trips that somehow total $147 - are temporarily off-limits. It’s a short-term reset designed to help you notice your habits, save money, and regain control of your spending.

Why People Try It: The Not-So-Obvious Benefits

Sure, you save money - but that’s just the start.

You instantly see your patterns.

Nothing reveals a spending habit like removing the option to spend. Suddenly, you realize:

“Oh, I buy candles when I’m stressed.”“Oh, I click ‘add to cart’ when I’m bored.”“Oh, apparently I think I need six different water bottles.”

You build a little financial muscle.

Self-control is a skill, and 30 days is enough time to feel stronger and more intentional.

You create space before buying again.

When the challenge ends, you’re less likely to slide back into mindless spending because you’ve experienced the calm of not constantly consuming.

You gain momentum for bigger goals.

A no-spend challenge frees up cash that can go straight into:

Your emergency fund
Paying down a lingering balance
Boosting your travel savings fund
Funding that “one thing” you’ve been putting off

How to Do a No-Spend Challenge Without Hating Life

Define your rules upfront: Your challenge, your rules. Some people include coffee shop visits, others don’t. Some allow kids’ activities, some keep it strict. Clarity keeps you from negotiating with yourself three days in.

Name your “allowed” list: These are your essentials. Write them down and stick to them.

Plan for situations that tempt you: What’s going to be your kryptonite?

Boredom scrolls?
DoorDash nights?
Lunches out with coworkers?

Replace the spend with something else: Instead of clicking “buy,” try:

Taking a walk
Making a latte at home
Decluttering one drawer
Using what you already own
Checking your financial goals for motivation

Make It Social: Everything is easier - and more entertaining - with friends. Create a group chat or a shared Google Doc where everyone logs:

Wins
Temptations resisted
“I almost bought this ridiculous thing” screenshots
End-of-month savings total

You’ll be amazed at how motivating it is to cheer each other on.

What Happens After the Challenge?

That’s where the magic really kicks in.

Many people say their spending doesn’t bounce back to “normal.” Instead, they feel more grounded, thoughtful, and confident. You may discover you want fewer things. You may build a healthier baseline budget. You may stop buying things just to cope with stress (or boredom… or Instagram ads).

A no-spend month is less about restriction and more about creating space to think, reset, and rebuild habits that last far beyond January.