The idea came to us on a walk in the woods. It seems all our good conversations happen there. The kids are strapped into the stroller, relatively restrained and fascinated by the world surrounding them. Our minds are clear without the distractions of traffic and storefronts and needing to be aware of crossing the road and bumping into other people. The local forest is our escape from the reality of city living, and a moment where we can breathe freely and let our minds wander.
It’s during these walks that the thoughts and ideas, the conflicts and the stresses of life, all tangled up inside of us, seem to find space to emerge. We are able to talk more freely, connect more deeply. And find ourselves committing to outlandish ideas… like a no-spend year.
What is a no spend year?
At its simplest: a year in which we try and spend as little money as possible, sticking only to our essential needs, and even then finding ways to be intentional in keeping those costs low. Spend less, save more.
My first encounter with the idea of a no-spend year was back in 2017 from Michelle McGagh’s Ted Talk “My No Spend Year”. She references being inspired by the no-spend day, a movement that started in response to the over-consumerism of Black Friday, which she and her husband decided to try for an entire year. I remember my initial response to her challenge - part horror, part intrigue. Is this real? Possible? What would life look like taking on a challenge like this?
Fast-forward 6 years. It’s no longer just me. There’s my husband and two kids that I’m responsible to. We live in a rented apartment in one of Canada’s most expensive cities (Vancouver). We own a very well loved 2003 Honda Civic (we call her Rhonda, and she’s paid in full). We have had a pretty average city existence: working, staying home with our kids, coffees out, eating out, basic entertainment, a holiday-or-two away every year. A humble amount of savings for something in the future (around $50,000 CAD).
And a chunk of student debt (in the realm of $70,000 CAD).
Why are we embracing a no spend year?
It wasn’t until our walk in the woods that we recognized the weight that carrying around this debt was having on us. Anytime we started talking about the future and what we wanted to move towards as a family - whether that was a trip to plan, or considering home ownership, or even just updating our family vehicle to meet our needs - we felt this debt looming, reminding us that it would always be just a little bit in our way until we dealt with it.
And that was what set us off on the journey. Could we pay off this $70k in a year? If we were to save every spare penny, streamline our budget to the absolute essentials, could we scrape together enough to pay this all off?
We’ve been budgeters since we married, and have nearly 5 years of data available to us. With some quick number crunching and looking at our spending habits over the past 18 months (the most reflective of our current season of life), we knew it would be close, but decided to say yes to the challenge.
So here we are, in the midst of our no spend year, seeing what’s possible.
As much as our “why” for doing this challenge is centred on paying off student debt, there’s another question that’s been settling in my mind that I’ve become curious about. How does a year of not spending money reshape my relationship with being a consumer? As spending money becomes something I no longer actively participate in, what might I learn about what is important, what I value, what brings joy in my life?
What are the rules for our no spend year?
The rules feel fairly simple: we’ll buy the things we need, and none of the things we don’t (you might call these our “wants”). Needs feel fairly clear and tangible - monthly/annual expenses that we’re committed to maintain for our basic human needs. Wants fall on the side of “nice to haves” and are definitely things we can live without.
Of course, there will be things in our “needs” categories that others may feel are not truly needs. That’s fair. However, this is not a challenge that is based on someone else’s perception of how we should or should not be spending our money. It’s based on making commitments to spending our money in ways that are values-aligned for our family, while also challenging ourselves to live more frugally for a season.
How we’re seeing the current break down of our budget looks something like this.
First, our “needs”:
Rent: for our 2-bedroom apartment in Vancouver
Renter’s Insurance: basic coverage as required by our landlord
Utilities: covers our water and electricity usage
Internet: basic coverage through Shaw
Phones: two mobile phones, which we own outright, and use a “bring your own device” plan for the best deal
Groceries: for 4 people (two adults, two kids)
Coffee: this is for ethical beans, not coffees out
Transportation: vehicle insurance, gas, occasional public transit, bike maintenance
Car Repairs and Maintenance: regularly setting aside money for our older vehicle
Kid Expenses: diapers (cloth and disposable), clothes, medications
Home: cleaning products, laundry supplies
Medical: medications, supplements, any one-off medical needs that aren’t covered by our benefits
Toiletries: toothpaste, face/body care, the usuals
Life Insurance: for me and my husband
Gifts: minimal spend for birthdays (to each other and our kids)
Charitable Donations: 10% of our net income donated to our local church and charities
Child Savings: set aside monthly for our kid’s future
Streaming Services: Spotify, Google storage, Apple storage
Debt Repayment: all money that remains after paying allocation to our needs will go to our student loans
And then, all the “wants” that we’re putting on hold for this season:
Alcohol: anything brought into the house, or drinks out
Home: furniture, decorative items, anything beyond the essential cleaning and laundry supplies
Haircuts: Colton is putting his trust in my YouTube barber skills for the next year, I’m going without altogether
Clothing: any and all things
Vacation: staying close to home this year
Streaming Services: thanks to our parents/my brother for sharing with us ;)
Dining Out: I’ll miss you, sushi
Fun Money: for misc. entertaining experiences
And of course, there’s a few exceptions we’ve considered:
Each of us has a “personal spending” account, into which we’ve put money on a monthly basis since we’ve been married (around $50-$100/month, depending on the season). This is money that either of us can use on personal expenses without requiring any conversation with one another. It tends to be things like yarn (for me), discs or records (for Colton). Each of us came into our no-spend year with money in these accounts, and if we so choose, it can be spent during our no-spend year. That being said, no new funds are being added to those accounts during the year (with the exception of money given as a gift, as often our family’s do on birthdays).
We have accrued a good number of Scene points (Cineplex movie theatre) over the years, and still have enough points to redeem for a couple movies out. We will use these over the course of the year - but no extra spending while at the theatre (sorry, popcorn).
We have two growing boys (1 and 2 years old). They have some needs in this season of life - clothes, possibly a bed upgrade - that we’ll need to carefully consider. We’ll choose to borrow or use hand-me-downs first, buy second hand, and only buy new if absolutely necessary.
Sometimes we sell things - like a board game we haven’t used in years, or clothes that no longer fit/are no longer worn. In these instances, we’ve opted to put the money from those sales back into the corresponding budget category (such as “Fun Money” or “Personal Spending”). The money from those sales can be spent accordingly during the no-spend year.
Investing in relationship with others is always our priority, and where spending money to do so is unavoidable, we will choose to spend the least amount possible to maintain those connections. We have found that we can largely avoid any additional money spent by proactively inviting people to our house for dinner or games, or choosing free activities like going for a walk or hanging out at the park or watching a movie at home instead of a paid option.
What are we learning so far?
Amazingly, we are already 5 months into this challenge! There is lots we have learned, and I’ll share a deeper overview of those insights soon. One thing that has really surprised me, though, was how easy the first few months were. Taking the option of spending money off the table meant there was little mental space or time and energy even considering purchases or how we would use our money. It has been remarkably freeing.
More recently, I’ve encountered some moments that have challenged my commitment to our no-spend year, and I’ll share more about that in future posts. But ultimately, we’ve built surprising momentum with this challenge, paying down debt, and cultivating new habits with our money.
What do you want to know?
What are you curious about with our no-spend year? What do you want to hear more about?
Some of the things happening in my life:
Listening to the sound of a double-digitized ocean - my kid’s sound machine, playing to me through the room monitor sitting near my desk. Nap times have become my moment of the day for tapping out these reflections.
Watching Wellmania. A bit cringey, but mostly entertaining and an easy solo-watch.
Making kombucha. Summer is here and I’m glad to have this brew back on rotation.
Noticing the garden outside my window. Attempting to grow some edible things this year - and wondering how they will fare against the birds on our balcony…
How did 2023 end?