Save $3k in One Year

🔍 Deep Dive: How to Complete a No-Buy Challenge

GoBankingRates did the math: A no-buy year can save you around $3,000 per year.

It’s a simple commitment. Use up what you have, spend nothing (or less) on unnecessary things, and save money.

The goal here isn't to punish yourself or live in misery.

It's to break the cycle of impulse purchases, appreciate what you have, and put money toward your financial goals.

1️⃣ Define Your No-Buy Rules

Essentials are always allowed in a no-buy challenge:

• Groceries

• Housing costs (rent, utilities, maintenance)

• Transportation (gas, public transit, car repairs)

• Health care and medications

• Things you need for work (like uniforms)

• Replacing essential items (like if your hair brush or belt breaks)

Some no-buy challenges eliminate all unnecessary expenses. Others have specific rules for certain categories.

Here are a few things to decide on:

• Gifts: Will you eliminate gifts as a whole or set a specific budget for birthdays and holidays?

• Eating Out: Will you allow meals if the purpose is for socializing, like someone's birthday dinner?

• Personal Care: Is it okay to buy a more expensive skin care product when you run out of one you already have?

• Clothes: Is it okay to replace a worn item? Or is your goal to spend nothing on clothes?

Once you’ve set your rules, you’re ready to begin the challenge.

2️⃣ Inventory What You Have

Most people own far more than they realize.

Kick off the challenge by taking an inventory of what you already own. You may find items you forgot you had, which can lessen the desire to buy something new.

Tip: Make a list of what you find, or separate it somehow. Categorize it if needed. It makes it easier to reference when you want to buy something new.

For example:

• Kitchen: List out all the items you dig out of the back of your pantry. Use those up first before shopping again.

• Personal Care: Put the old makeup you want to use up in a basket to pull from on a daily basis.

• Books: Make a stack of your unread books. Make it a priority to go through them.

3️⃣ Set a Financial Goal

Why are you doing a no-buy year? What do you want to do with the money you save?

Setting a financial goal you’re hoping to reach by the end of the year can motivate you to stick with it.

For example:

• Pay off my last $3,000 of credit card debt.

• Take a vacation to Alaska.

• Fund my emergency fund.

4️⃣ Find Replacements for Your Favorites

This challenge comes with a significant amount of sacrifice. But you can easily find replacements for the things you'd normally spend on.

Tip: Use TripAdvisor to find free things to do in your area.

Here are a few examples:

• Dining out → Picnics with food you already have

• Gifts → Regift an item you have and don’t use

• Decor → Swap seasonal decor with a friend

Tip: Share your goal with your friends. Those who keep their goals private have a 35% change of accomplishing them. People who share their goals with others have a 70% chance of accomplishing them.

Plus, you might find that your friends are down to do free activities with you.

5️⃣ Leave Room for Error

The point of the challenge isn't to deprive yourself for an entire year.

There will be moments when you want to allocate a reasonable budget to something like a friend's birthday or a gift for your child. That is okay.

If you slip up one day, don't throw the whole challenge out the window. Start fresh the next day.

365 days of half-following the challenge is better than 0 days not following it at all.

Put It Into Practice

Create a set of rules for a no-buy challenge you can implement over the next year.

Elyse Lyons, a content creator and blogger, has a great free 30-day no-buy tracker you can use to track your completion throughout the year.

💵 Budget Breakdown: Moving to Save Money

A family moved from Austin to Colombia. Now they’re closer to family, paying little in rent, and earning income renting out their prior home.

It could take around $10k-$20k per person to move to another country. But it could save you thousands per month if you move somewhere with a lower cost of living.

🔗 Quick Links

💰 $3k/mo side hustle earnings breakdown.

🗣️ Get paid to answer questions.

💸 Suze Orman’s financial advice.