6 Ways To Succeed With No Spend January, According to Frugal Living YouTuber Kate Kaden
In a YouTube video, Kate Kaden shared a tradition she’s had since 2017 called “No Spend January.” It’s a challenge that’s helped her, as well as others, cut back on unnecessary spending and instead focus their budget elsewhere. And it starts right now.
If you’re trying to become more disciplined with your finances, this challenge could be for you. It won’t solve everything, but it can definitely set you on the right track.
Here’s how to succeed with a “No Spend January,” according to Kaden.
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The Battle of Needs Versus Wants
This challenge is about identifying and choosing between your needs and wants.
“We choose the classic choice between needs and wants and all we’re spending on in January is the needs and we’re letting go of the wants,” Kaden said.
Choosing to spend money only on what you need isn’t always easy. There’s so much temptation out there, for one thing. But buying things you want is also a habit, one that’s hard to break.
This is where the challenge comes in. According to Kaden, this “No Spend January” can set the right tone for the year as you cut back on spending. Whether you’re tired of stressing about money or you simply want to find a better way to budget, it’ll help you get there. Just remember that it’s a tool, not a solution to every money problem.
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Focus on Your Needs
“Your wants are put on the back burner for this entire month and we are focusing solely on needs only,” Kaden explained.
But how do you do this? Start by identifying your needs.
Everyone has their own needs, but there’s a lot of overlap that can make identifying the essentials easier. Kaden pointed out some of the big ones — like groceries, your mortgage or rent, other bills and any prescription medications.
Make a list of these essentials and of anything else that falls into the “needs” category. Whenever you go to buy something, double-check that it’s a need. If it is, go for it. If it’s not, don’t.
Avoid Wants
The other side of “No Spend January” is to avoid spending any money on wants. These are purchases that often cost more or are simply not essential for daily living. Some are impulse purchases or those meant for immediate gratification. Oftentimes, they’re not that meaningful and end up being a waste of money.
“We are not buying extra clothes that’s not needed, we are not going out to eat, we’re not going through the drive-thru, we’re not buying home decor that we don’t need,” Kaden said.
If it’s something you don’t absolutely have to have, set it on the back burner. If you still want it after January, you can reevaluate whether it’s worth the cost then.
Take Notes
This January, Kaden shared a new aspect to the tradition that’s helping her keep on track and that’s keeping a journal throughout the month.
In this journal, she records how she feels about not spending money on non-essentials. This makes it easier to keep awareness and better understand her own money habits — both of which can also set the tone for a successful no-spend month.
But remember to give yourself grace as you write down your experiences and how you feel. Nobody’s perfect and that’s OK.
According to Kaden, the key thing is to keep track of your feelings about not spending money. Does not buying something you wanted make you feel irritated? Relieved? Does is allow you to spend more time with family and friends or tackle other things you’ve been putting off?
Taking notes and being honest with yourself during this month can teach you more about your money habits. You can also apply what you’ve learned well beyond the month of January.
Create Your Own Rules and Goals
There are plenty of ways to budget more effectively or cut back on spending. You can start with this challenge, but you can also change it up.
“Feel free to make your own rules that are going to be effective for your goals,” Kaden added. Whatever your goals are, they should be irresistible and “make you want to jump out of bed and not spend money that day.”
Choose a Word for 2025
Kaden also shared how she’s chosen a word to inspire her for every “No Spend January” since 2017. Your word should be something that inspires you and puts out a sets the tone for the year.
While your list might be different, this is hers over the years:
2017: “Prepare”
2018: “Invest”
2019: “Impact”
2020: “Be brave”
2021: “Vibrant”
2022: “Simplify”
2023: “Focus”
2024: “Elevate”
2025: “Alignment”
Not every year will work out exactly as intended, but having this word can help keep you on track. And it can help align your goals with your actions and thoughts. You can view your word as an extension or alternative to the typical New Year’s Resolutions.
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This article originally appeared on GOBankingRates.com: 6 Ways To Succeed With No Spend January, According to Frugal Living YouTuber Kate Kaden
