We’re doing a “no spend” year!

The title says it all… Me and my family are attempting to lower our spending by not spending on non-essentials. The current economic climate is tough for everyone with the cost of living being unbearably high. We have two children in daycare which means we are spending $600 per week on childcare, so although we are on reasonable incomes after our mortgage we are left with very little left over.

There are a couple of reasons people do low spend, no spend or no buy years. For some people, they want to focus on living a more minimalist and less consumer driven lifestyle. For others, such as my family we are motivated to try to build some savings. We currently live in a house that suits our present needs but is a bit further from family and work than we would like. Our goal is to save enough that we can move closer to both of those.

Both my partner and I were reasonably frugal individuals prior to having children. However, feel that our spending has crept up recently. It’s hard to keep on track with saving when the cost of what you’re spending seems insignificant in comparison to childcare costs, nappies and formula!

1. $20 budget for birthday/Christmas gifts and only for immediate family.
2. No pre-mixed alcohol, sticking to our cupboard stash of liquor and standard beers and wines for my husband.
3. No bubble teas for me unless I make them at home.
4. No buying food out on the weekends. We are allowed to go out to lunch with workmates once per week, out for dinners with friends that are under $20 per meal or on date nights that are under $20 per person. Although, with kids it’s hard to get out for date nights anyway!
5. Focus on using what we have before purchasing additional food, e.g. no stockpiling perishables because it’s a good deal. Generally, just working through the freezer stash.
6. No buying any items unless it’s 100% necessary e.g. if our oldest son grows out of his shoes. Or if something we actually needs breaks, e.g. fridge.
7. No buying any holidays (this may be a weakness of mine) but it excludes a trip to Naseby to compete in curling nationals and a trip to Samoa that has already been booked.
8. Sticking to activities that are under $10 for the entire family.
9. Being more mindful on power/water usage

We have defined a couple of metrics to measure success:

• Comparing spend in the current month this year with the same month last year
• Comparing spent in the current month this year with the average monthly spend last year

Success will mean we build enough deposit to buy into an area we are interested in. We are hoping to save 20k but our rules are very stringent and leaving us with the basics. We will also only be able to achieve this if we have no unexpected expenses e.g. car repairs, big mortgage increases. We will be trying to spend $150 NZD per week on groceries for a family of four. This includes formula and nappies for 2 children.

So far, we are feeling quite good. My husband is focusing on building a product he hopes will lead to a startup, and is enjoying the challenge of restricting himself from alcohol and certain foods that don’t meet our budget. He is finding himself more able to focus his time on his product and is making good progress.

I am optimistic we will make our savings goals and enjoy window shopping for houses in our preferred area when I get the urge to spend. I do have a $140 voucher that I am saving for a desperate situation. Two weeks in, we have yet to go outside our self selected rules and can already see the credit card is going to thank us for it this month!

Are you doing a no spend year? Let us know how you’re doing in the comments. I am considering sharing updates of our spending, let me know if you’re interested in the comments.

If you’re interested in this post, you’re also likely to be interested in my finance posts or family posts.