8 Steps To Have A Successful Low Spend Month

I’ve always considered myself to be a conscious consumer, but after moving in with my partner in 2023, we both had to come to terms with the fact that we simply have too much $#!T. 

And since that harsh realization I’ve accepted the fact that I was in fact not as conscious as I thought I was. For the last two years, I’ve been cleaning out my closets twice a year  and donating clothes, shoes and sneakers that I wasn’t routinely using. 

In 2024, I tried really hard to have a low spend / nearly no spend year in terms of buying new non essential items, most especially clothing. For the first 8 months I was doing really well. I went from purchasing new items every other month, to telling myself “NO” and shopping my closet. 

Then my birthday month arrived. In one week, I purchased 4 new dresses, a denim two piece, and was gifted a 5th dress. The following week, I was thinking a little clearer, and returned one of the dresses, but I really felt like I undid all the progress I made the first 8 months of the year. 

August opened the floodgates, and the holiday season demolished the gates. I spent way too much money on poor quality clothing that would likely end up in a landfill in 3 - 5 years. 

This time…I returned 95% of the items – though I came to my senses and spared my budget, I still was a tremendous resource drain on the environment. Something I’m also trying to decrease in 2025 – my ecological footprint.

So What’s The Plan

I’ve got a lot of goals I want to hit in 2025. And similar to when I was paying off my student loans and saving to purchase my home, I’m adjusting and updating my spending habits. 

I’ve stayed within budget for the holidays, but on my next money date  I am updating my categories (adding in a few new sinking funds) and how much I’m allotting in each category. That doesn’t mean that I won’t spend on things I love and enjoy, but it does mean adjustments will have to be made.

Those adjustments MUST be planned for, and here’s how I’m using my December money date to do it. 

What is a low spend month: a low-spend month, is exactly what it sounds like and it can be used to help you get back on track and regain control of your finances. They come in really handy right before or after the Summer and the holidays.  

PERSONAL NOTE: I’m starting out with a low spend month in January so I can ease myself into a low spend year. If you are interested in having a low spend year as well, these guidelines are a perfect starting point
If you’re looking for weekly support during your low spend month or low spend year – join my free Future Millionaire newsletter.

Step 1: Set Your Goals

Before you decide to officially dive into a no spend or low spend month, clarify your why. 

• Are you trying to rebuild your savings? 
• Really trying to pay off a specific debt quickly or early?
• Did a bit too much spending during the holidays and trying to  recover? 

It’s so important to define your “why”, because it’s all fun and games the first few days, but temptation, frustration and every other “ation” life can throw at us … it will. Your why will keep you motivated when life gets a bit difficult and the “treat yourself” mantra is blasting loudly in your ear.  

Write down your goal somewhere visible. I’m a sucker for post-its all around the house, but it’s important you choose to do what works best for you. You can place your goal anywhere visually that’s most helpful. 

That could be a reminder on your phone, a photo set as your wallpaper, or a post-it note on your fridge. A clear visual representation will be your anchor when deciding whether to spend or save.

Step 2: Go On A Money Date

If you take away anything from me in this, it's important to really know your numbers. Once I stopped estimating my monthly spending, and actually looked at the details of where my money was going, I was able to see REALLY SEE my spending leaks and where I was consistently over spending.   

Take an honest look at where your money goes on a monthly basis, especially if you are recovering from overspending these last few months, and you’re aiming to pay off debt you accumulated during the holidays. 

Identify patterns in your spending—both necessary and excessive. Use your bank statements, spreadsheet templates or budgeting apps to track your transactions. I personally use Empower (formerly known as Personal Capital) to track my net worth and get a second opinion on my budgeting habits and financial routine.  

I use the Millennial In Debt Money Date Template to track my transactions, set my monthly budget, and look back on my annual spending at the end of the year, to make the necessary adjustments as needed. 

Once you know where your money is going, categorize expenses into:

• Non-negotiables (rent, utilities, insurance).
• Essentials (groceries, transportation).
• Discretionary spending (eating out, entertainment, impulse buys).

These three categories will help you navigate your low spend month carefully, while your budget will allow for you to spend in areas you value. We’re not cutting our value spends just because we are doing a low spend month. 

I don’t like to operate from a space of deprivation. I’v done that in the past and it is very unpleasant. 0/10 do not recommend. 

However, navigating your discretionary spending and value spending will require different types of patience and motivation. But don’t worry that’s when step 3 comes in really handy ⬇️ 

Step 3: Create a Realistic Budget

Your money date is not complete without creating a realistic budget that you can use and follow for the next 30 days. it’s time to create a lean but realistic budget for the next 30 days. 

In this budget, you will prioritize: 

• Fixed expenses (rent/mortgage, bills).
• Minimal grocery and transportation costs.
• A small “emergency fund” for unexpected needs.

Stick to cash or debit to avoid racking up new credit card debt. Use a free app like Empower or simple spreadsheet to monitor your progress.

Step 4: Solidify Your “Low-Spend” Rules

The goal during my low spend month isn't to eliminate all discretionary fun spending. When I first started aggressively paying off my student loans, I gave myself very strict no spend rules. It was unpleasant and wrecked my mental health.   

However, since you’ve gone on your money date, budgeted, created a plan,  you’ve allotted money for yourself. You have included yourself in your budget. Does that mean you’re going to spend thousands of dollars on yourself a month at the detriment of your money goals? ABSOLUTELY NOT! 

During a low-spend month, the goal is to eliminate most discretionary spending. Instead of financing 3 value spend categories, you choose one. This can also look like: saying no to dining out or ordering takeout, but keeping your coffee runs in morning. 

Instead of buying hundreds of dollars in clothes, give yourself a $50 dollar cap to buy something you enjoy without going overboard. Canceling 3 of your discretionary subscriptions, but keeping your absolute favorite one. 

Whatever you decide will be your value spend during your low spend month is yours. Then your remaining discretionary expenses are paused for the month, to help you direct your extra funds towards your financial goals. 

Step 5: Get Creative with Resources

A low-spend month doesn’t have to feel restrictive. In fact, the more restrictive it feels, the more counterintuitive it will become. When your low spend month ends, your reflex will be to run in the opposite direction, undoing all the progress you’ve made.  

Restriction is not the goal. To minimize discomfort as you adjust to less consumerism, you’ll want to get creative with the resources you already have. Here are a few ideas on how to get it done 👇

• Groceries: Shop your pantry and freezer before buying more. Plan meals around what you already have. There are plenty of apps and websites that you can type in the ingredients you currently have, and they will provide you with a ton of recipes you can make for the week.  

• Entertainment: I live in New York so I know this suggestion can be a bit tone deaf for those who don’t live in big cities but, attend free local events. If you’re unsure what’s going on in your area, you can look up community websites and social media to source new activities and events you can attend for free. The library is another great community building tool you can use for free. 

• Gifts & Social Obligations: Whew… these can be really difficult to navigate when you’re on a low spend month. If birthdays or events pop up, DIY your gifts or use existing items creatively. I’m also a fan of regifting old gifts – so if you’ve got those lying around at home and it is a) unused / unopened b) a gift that you know your loved one would like/ enjoy or appreciate REGIFT! It is better for the environment in the long run to do so. 

Step 6: Involve Your Household

One of the best things I ever did for my finances: including my loved ones in my journey. When I sat down to write the Millennial In Debt web series, I took my loved ones on that journey with me. It felt important to have them really understand what my money goals were and the steps I’d be taking to reach them. 

If you live with a partner, family, or roommates, share your goals and enlist their support. A collaborative effort makes sticking to the plan easier and less isolating.

You can also include them by turning your low spend month into a fun challenge by tracking your progress with a visible chart or reward system (a low spend reward system 🚨)

Step 7: Track and Celebrate Small Wins

Diving further into that last statement, during your low-spend month, be sure you are tracking your progress. Use a spreadsheet, an app, or a journal to log your victories (no matter how big or small) 

Acknowledging your progress will keep you motivated to stay on track, and it helps you visually see the progress you are making. 

Create a small reward or celebratory moment for every milestone you hit. For me… it’s always pizza. Pizza is always my reward and that usually costs me less than $20 dollars. Then it’s back to home cooked meals and low spend focus.

Step 8: Plan for the Future

Once your low-spend month ends, reflect on what you learned. How did you feel during the experience? Checking in with your emotional and mental state is just as important as checking in with your financials.  

Were there areas where cutting back wasn’t as painful as expected? Could you continue any of your low-spend habits permanently? Is this a routine you can comfortably continue for the rest of the year? 

Direct your newly saved money towards the goal you set in step 1. Whether that’s towards your emergency fund, paying down debt, or starting a sinking fund for future expected expenses. 

The Bottom Line

A low spend month is meant to get you back on track financially. It is NOT meant to be overly restrictive. By following these steps and embracing the challenge, you’ll be taking steps towards setting yourself up for a stronger financial future.

Remember, progress is progress, and it does not matter if you make mistakes or take longer than you anticipated – you are working towards your goals and there is nothing small about that. Every dollar saved is a step closer to your financial goals. If you are considering a low spend month and don’t know what tools to use, here are tools and strategies to keep you on track:

• Budgeting Apps: Empower (formerly Personal Capital), YNAB, Rocket Money.
• Meal Planning: Use websites like Budget Bytes for affordable recipes.
• Expense Trackers: A simple notebook or the Millennial In Debt Money Date Template
• Accountability: Join online communities or forums like Reddit’s r/Frugal.

If you found this post helpful, don’t forget to share it with your community and join the free Future Millionaire newsletter. I send financial tips, strategies and how to’s straight to your inbox weekly so you can get better with your money. 

Until next time, 

M.