After a year of relative indulgence, Alexis Howard knew she needed a financial reset in 2023.
Impulsive trips, Amazon hauls inspired by her TikTok viewing, new clothes, and too many dinners out: The 28-year-old spent more freely than she had ever allowed herself before in 2022, and she wanted to reel it back in.
After reviewing her budget, she decided to challenge herself and try to only spend $50 on non-essentials each month for the entire year. That doesnt include things like rent, groceries, pet essentials, and investments; but it does include discretionary items and activities like clothes, eating out, food delivery, social outings, and so on.
In every facet of my life, I felt like there werent any boundaries I was putting into place, Howard tells Fortune. I was just spending.
Howard is no stranger to extreme money-saving challenges. In her early 20s, she saved up $20,000 in a year while earning around $65,000 in San Francisco, one of the most expensive cities in the U.S. That led her to learning more about personal finance and investing; soon, she started coaching others on managing their money, and eventually became a professional wealth advisor.
She doesnt have a target amount she wants to save this time around; she just wants to spend less. To that end, $50 is an arbitrary numbertheres no real reason she chose it, except that she wanted it to feel a little painful. If Im going to go for a challenge, Im going to go for it, she says.
So-called No and Low Buy challenges are popular on social media websites and personal blogs, particularly among women. Howard has never tried one before, and the first couple of weeks of the year were, naturally, the most difficult. In February, she spent a little over $93 on non-essentials when her grandmother died and she traveled to Pennsylvania for the funeral. But she says the goal is to be persistent, not perfect.
So far in March, shes spent just $46 outside of necessities (her largest expense being a $20 meal during a self-care night). Not spending money is becoming her default.
After you do a cleanse, you kind of want to binge, she says. But now that were over halfway through March, it feels intuitive. When your budget is so tight, you really, really have to be clear on what matters to you.
Howard has instituted a number of lifestyle changes to help her meet her goal, but she hasnt cut all the joy from her life; if anything, she feels more enriched from being more intentional with her time and energy. Cutting spending doesnt have to be unpleasantHoward prefers to think of it as bringing her closer to financial abundance rather than being restrictive. Shes learning that the essentials are more than enough.
The art of discipline
Creating a budget and being selective about the media she consumes have helped Howard keep her spending low. She has unfollowed influencers, unsubscribed from email marketing lists, and even deactivated her personal Instagram account so she wouldnt feel left out by what friends and acquaintances are doing.
I dont need to see that someone is in Rome right now, those things wont keep me focused, she says. A huge part of my success has been focusing on being disciplined and feeling good and keeping my energy levels high.
Her closest friends are all supportive of her endeavor: theyre opting to go for walks, split a bottle of wine at home before going to bars (it counts as part of the grocery budget), and look for other free activities in the Bay Area. She also takes the bus, walks more, and gives herself gel manicures at home. She does not have children, which, of course, helps.
All of this said, shes calling it a challenge for a reason. There are some nights and weekends where she hasnt done much so as not to spend money. It can be a little boring. To stay motivated, she reads self-help books and pictures what shell feel like when shes successful.
Keeping her food spending in check is the hardest aspect of the challenge for her. She often relied on Seamless and Uber Eats for convenience, but now shes focused on prepping quick and easy meals and having plenty of snacks on hand. She hasnt spent any money on food delivery yet this year.
Those who also want to cut their discretionary or impulse spending dont have to go to such extreme lengths, she saysits simply not realistic for most people. But reviewing credit card and bank statements can help you see if theres any area where you can save even $100 or so a month. Usually thats motivation enough for people, she says.
Howard has found the experiment more than just financially beneficialits also been spiritually motivating. Youre breaking your dependence on overconsumption, youre learning to enjoy life basically for free, she says.
So this is her year to focus on building financial discipline. Come 2024, shell reassess where she is and where she wants to go next.
Im rolling with the punches as they come, well see where the path takes me.
