Embracing a "Minimal Purchase" Phase: Strategies to Slash Expenses
If you're someone who uses the beginning of the year as an opportunity to establish objectives or develop habits, you might have thought about adjusting your financial strategy. This could mean attempting to adhere to a budget once more or ruthlessly discontinuing all non-essential expenditures for the entire year. Nevertheless, neither of these choices is straightforward (or even achievable), given that your connection with money is deeply emotional and complex. You typically need to delve much deeper to effect change.
However, if you have financial objectives for 2025 and wish to spend more thoughtfully in order to achieve them, it may be worth considering implementing a "low-spend period." Let me explain where to begin and why a low-spend approach can be more advantageous than trying to abstain completely.
What is a "low-spend" period?
A low-spend (or low-budget) period generally involves reducing discretionary spending in particular categories without completely eliminating it. After covering all your necessities—housing, food, transportation, healthcare, etc.—you search for ways to rearrange your priorities and reduce spending on less important items, based on what matters most to you. This is different from no-spend/low-spend challenges, which usually prohibit all discretionary purchases: no dining out or takeout, no new clothing or personal items, no concert tickets, etc.
There's no one-size-fits-all set of rules for a low-spend approach, since everyone's values and circumstances are unique. For example, if you enjoy eating out with friends, you might limit the frequency of those outings from once a week to twice a month, and replace the remaining meals with a less expensive alternative (such as hosting a potluck at someone's home). Or if you're redecorating your home, you might set a limit on the number of items you purchase each month or try to shop used or secondhand first.
The primary objective of a low-spend period is to spend more mindfully, which can also help you spend less on unnecessary things and work toward other financial goals, such as paying off debt or saving for a large purchase.
How to try a low-spend approach
If you want to experiment with a low-spend approach, start by identifying your reason for doing so. If you start cutting back on things you love (or spending habits you want to change) without a clear purpose, you'll likely get sidetracked or lose momentum quickly. Your "why" could be anything from decreasing credit card debt or increasing what you can save or invest to changing your relationship with impulse buying or reducing overall consumption. You can also set a specific goal to repurpose your money, such as saving X amount to put toward your emergency fund or your retirement account.
Next, set a realistic timeframe. Start small—a week or a month—especially if you've never paid attention to your spending habits before. You can always extend your low-spend period for longer. Set milestones (like opportunities for small victories!) along the way to check in and assess how you're doing.
Finally, identify what matters to you and how your money helps you align with those things. If you value experiences, don't eliminate event tickets entirely—refocus on a select few that you're most excited about or purchase cheaper seats. If you love giving gifts, make them meaningful and special rather than frequent and expensive. Focus on spending that is high-value and genuinely enjoyable rather than restricting for the sake of restricting.
Five strategies for a successful low-spend period
There are also a few common strategies for a successful low-spend period:
- Create an "order of operations" for your purchases. If you do have to buy something, exhaust your free or low-cost options first before purchasing new. Kara Perez of Bravely Go suggests shopping your own home first, then trying "buy nothing" groups, borrowing, trading, repairing, and thrifting.
- Make one-to-one replacements. Instead of adding toiletries or cleaning supplies to your collection, replace exactly what you have only when you've run out. This can reduce spending on disposables that end up half used (or unused).
- Keep track of your spending. If you reach the end of a low-spend period without any data, you won't really know how it went. Use a spreadsheet to write down expenses (including date and amount) or subscribe to a budgeting app.
- Unsubscribe. As minimalist YouTuber Christina Mychas says, ignorance is bliss. Unsubscribe from email lists and reduce time spent watching influencer hauls so you aren't bombarded with opportunities for mindless spending.
- Seek out support. Tell the people you live, work, and spend time with about what you're doing and how they can help you. You can also find communities (such as r/nobuy) where you can learn more.
Alongside your financial objectives for 2025, embracing a "low-spend" period could be a more manageable approach than a complete spending abstinence. By reducing discretionary expenditures in specific categories without eliminating them entirely, you can work towards mindful spending and savings, ultimately allowing you to fund other financial goals.
Implementing a low-spend strategy may involve identifying priorities and cutting back on non-essential expenses through strategies such as one-to-one replacements, keeping track of your spending, and seeking out support from friends and online communities.
