WEBVTT - Can a 'no buy' year actually work? 0:00:01.680 --> 0:00:03.840 Welcome to How Do They Afford That? The podcast that 0:00:03.880 --> 0:00:07.160 peeks into the financial lives of everyday Australians. I'm Michael Thompson. 0:00:07.200 --> 0:00:09.680 I'm a writer and the co host of the podcast 0:00:09.840 --> 0:00:12.960 Fear and Greed Business News. As always, I'm with financial 0:00:13.039 --> 0:00:16.159 planner Canna Campbell, founder of Sugar Mummer TV, which is 0:00:16.160 --> 0:00:19.160 the financial literacy platform that you will find pretty much 0:00:19.280 --> 0:00:25.759 everywhere YouTube, Instagram, TikTok, threads, books and podcasts like this one. 0:00:25.880 --> 0:00:27.920 Hello Canna, Hello, how are you? 0:00:28.280 --> 0:00:31.840 I am very well? Indeed, thank you? I am. I 0:00:31.880 --> 0:00:36.440 have been observing a trend in recent weeks because it 0:00:36.520 --> 0:00:40.440 is we are still relatively close to the start of 0:00:40.440 --> 0:00:43.880 the year, and so you see people making money resolutions 0:00:44.159 --> 0:00:45.760 or at least the first kind of six weeks of 0:00:45.800 --> 0:00:49.279 the year, and one that I've seen a few times now, 0:00:49.280 --> 0:00:51.680 it just keeps popping up. Maybe the algorithm has kind 0:00:51.680 --> 0:00:55.760 of picked me as very susceptible to this, people committing 0:00:55.960 --> 0:00:59.320 to a no by year or a no spend year. 0:01:00.240 --> 0:01:04.040 So my questions for you today, Kenna, why would anybody 0:01:04.080 --> 0:01:08.720 do this? How would they do this? Is it even 0:01:09.160 --> 0:01:15.039 possible to go a full year without spending? Within reason? Obviously? 0:01:15.080 --> 0:01:16.760 I know that's going to be exceptions to the rule. 0:01:17.920 --> 0:01:22.120 Let's jump into it. What exactly is a no by year? 0:01:22.160 --> 0:01:24.480 How does it actually work in practice? 0:01:24.640 --> 0:01:29.679 Okay, A no by year is a personal financial challenge 0:01:29.920 --> 0:01:33.880 where you commit to avoiding non essential spending for an 0:01:34.120 --> 0:01:38.440 entire year. So it's really about going to heart of 0:01:38.520 --> 0:01:41.160 what a need is versus a wanton stripping back to 0:01:41.480 --> 0:01:45.680 the basics of life to help you save money, preserve 0:01:45.760 --> 0:01:49.800 money even and just learly recalibrate your spending habits. 0:01:51.080 --> 0:01:56.160 I saw recently some really alarming stats about how much 0:01:56.640 --> 0:01:59.800 Australians spend, and in particular clothing. 0:02:00.120 --> 0:02:02.960 Black Friday sales. I think we spent seven point three 0:02:03.080 --> 0:02:03.680 billion dollars. 0:02:03.880 --> 0:02:08.480 This is extraordinary. And on the clothing front, Australians by 0:02:09.600 --> 0:02:15.560 fifty six pieces of clothing per year on average. That 0:02:15.680 --> 0:02:18.480 is more than anyone else in the world. 0:02:18.840 --> 0:02:19.960 Isn't that disturbing? 0:02:20.360 --> 0:02:24.040 I am amazed. And obviously that's kind of an average, 0:02:24.960 --> 0:02:27.520 and I know that I would be well below that. 0:02:27.760 --> 0:02:31.000 So I can only imagine. 0:02:30.040 --> 0:02:34.120 Two flannies, two striped shirts and a black T shirt. 0:02:35.120 --> 0:02:37.680 Oh and a khaki one that you're wearing today. That's new. 0:02:37.720 --> 0:02:38.679 I haven't seen that one within it. 0:02:38.840 --> 0:02:41.800 No, it is very old. Thank you, I have. So 0:02:41.919 --> 0:02:45.320 I've pretty much committed to my own no by life. Basically, 0:02:45.360 --> 0:02:47.560 I'm just going to re I'm going to rewear these 0:02:47.639 --> 0:02:50.600 until they actually disintegrate on me. So I'm already there. 0:02:50.960 --> 0:02:54.799 But that isn't that alarming? Fifty six pieces of clothing 0:02:55.160 --> 0:02:58.320 purchased per year on average in Australia, So you can 0:02:58.320 --> 0:03:02.560 see why you don't come across kind of anti consumerist. 0:03:02.639 --> 0:03:05.239 But really that is there's got to be something wrong. 0:03:05.639 --> 0:03:08.760 There's a great documentary actually that's worth watching called by Now, 0:03:08.800 --> 0:03:12.080 which I made my son Rocco sit and watch with me, 0:03:12.160 --> 0:03:16.320 which touches on obviously clothing and electronic goods, but it 0:03:16.360 --> 0:03:18.440 is fascinating, which if you want to learn more about 0:03:18.840 --> 0:03:19.440 how we spend. 0:03:22.560 --> 0:03:25.799 So I was just like you just stop listening to. 0:03:25.760 --> 0:03:26.480 Me by Now. 0:03:27.160 --> 0:03:29.640 I was writing it down. There is a difference between 0:03:29.680 --> 0:03:31.960 not listening and taking notes, and I was writing down 0:03:32.040 --> 0:03:33.760 by Now and I was just there pondering, going, I 0:03:33.800 --> 0:03:36.960 wonder if that's by b U Y or b Y. Yeah, 0:03:36.960 --> 0:03:42.320 I'm assuming it is now Netflix. Okay, So is that 0:03:42.400 --> 0:03:45.160 why people then are drawn to these challenges? Why do 0:03:45.200 --> 0:03:48.840 you think it is Is it because that we almost 0:03:48.880 --> 0:03:51.840 just get overwhelmed by the amount we are spending, by 0:03:51.840 --> 0:03:54.280 the amount of stuff that we are accumulating. Is this 0:03:55.600 --> 0:03:58.280 a spending thing or is it a lifestyle thing trying 0:03:58.280 --> 0:04:00.920 to get more towards a minimalist kind of lifestyle and 0:04:01.480 --> 0:04:03.760 attaching the spending mindset to that. 0:04:04.720 --> 0:04:08.040 I think there are two key reasons, and obviously everyone's different, 0:04:08.040 --> 0:04:11.480 but these challenges appeal to people because they address a 0:04:11.680 --> 0:04:15.400 universal truth. You know, deep down, most of us know 0:04:15.520 --> 0:04:20.080 that we are overspending, even if it's not intentional. So 0:04:20.440 --> 0:04:22.599 if you take something like a no by challenge, it 0:04:22.640 --> 0:04:26.000 gives us this really concrete structure to try and work within, 0:04:26.720 --> 0:04:29.440 and gives us some accountability and also allows us to 0:04:29.520 --> 0:04:33.040 kind of reset our financial habits as well as, you know, 0:04:33.600 --> 0:04:36.080 just have something to sort of sink our teeth in 0:04:36.160 --> 0:04:38.320 and focus on if we haven't necessarily come up with 0:04:38.320 --> 0:04:42.120 any New Year's resolutions as yet. But also I think 0:04:42.120 --> 0:04:45.680 there's definitely a really strong psychological element, because people are 0:04:45.680 --> 0:04:48.880 intrigued by the idea of breaking free from consumerism and 0:04:48.880 --> 0:04:52.320 seeing actually how much little they can really live on, 0:04:52.440 --> 0:04:55.440 and they're really curious to see what they might learn 0:04:55.480 --> 0:04:59.039 and discover about themselves by doing a challenge like this 0:04:59.160 --> 0:05:01.800 or something very simla. So at the end of the 0:05:01.839 --> 0:05:04.159 day where you whatever reason you're doing for, it's definitely 0:05:04.200 --> 0:05:07.240 empowering to take control of your finances and see how 0:05:07.279 --> 0:05:09.359 you can go with this in a definitive way. And 0:05:09.560 --> 0:05:12.680 it also creates a sense of achievement if you are 0:05:12.880 --> 0:05:15.960 able to pull off this challenge. I mean this one 0:05:16.040 --> 0:05:19.400 we're talking about a year challenge is fairly substantial amount 0:05:19.400 --> 0:05:19.680 of time. 0:05:19.800 --> 0:05:21.560 And I suppose you can always kind of start with 0:05:21.560 --> 0:05:23.520 a no by a month or something like that, right 0:05:24.440 --> 0:05:27.600 weekend for February, frugal February, that kind of thing. But 0:05:28.800 --> 0:05:32.400 the rules around this, I like structure, I like some rules. 0:05:33.560 --> 0:05:35.599 Can you please set some rules here for me? Can 0:05:35.600 --> 0:05:39.120 I Is it just you don't buy anything that is 0:05:39.120 --> 0:05:41.960 non essential. You can still buy food, food, you can 0:05:42.000 --> 0:05:45.200 still buy medicine, I would hope. 0:05:45.200 --> 0:05:50.400 So, ok, right, looking really, but obviously you look at 0:05:50.400 --> 0:05:53.440 that Maslow hierarchy all needs you go with the essential. 0:05:53.520 --> 0:05:59.080 So you know, shelter, accommodation, food, clothing, healthcare, you know, 0:05:59.400 --> 0:06:00.040 you start with that. 0:06:00.400 --> 0:06:02.120 But clothing though that. 0:06:02.600 --> 0:06:05.120 What things you're naked, I mean not clothing like you know, 0:06:05.160 --> 0:06:07.960 a luxury designer wardrobe. I'm talking clothing, like, let's not 0:06:08.279 --> 0:06:09.159 just cover ourselves up. 0:06:09.279 --> 0:06:11.279 Yeah, clothing is probably one that kind of straddles this 0:06:11.400 --> 0:06:13.720 because you need you do need it to be to 0:06:13.760 --> 0:06:14.120 get by. 0:06:14.200 --> 0:06:17.560 Okay, let me rearticulate that at least underpants like underwear. 0:06:17.880 --> 0:06:20.520 If you just had a minimum dress code for the studio, 0:06:20.760 --> 0:06:23.159 so one must wear underwear and the rest of it. 0:06:23.200 --> 0:06:25.640 If you're in a no bio, just go for it. 0:06:26.240 --> 0:06:32.679 Goodness me, that is a confronting thought. So anything else though, 0:06:33.200 --> 0:06:37.240 gets just struck off. So we're talking that you wouldn't 0:06:37.480 --> 0:06:41.520 buy takeaway. You wouldn't buy a takeaway coffee for instance. 0:06:41.680 --> 0:06:45.000 All right, okay, so to do this realistically, you've really 0:06:45.000 --> 0:06:49.240 got to challenge this will tailor this to your unique circumstances. 0:06:49.800 --> 0:06:52.280 So look at what your spending is like, and what 0:06:52.360 --> 0:06:54.839 you classes and essential versus are non essential, and then 0:06:55.320 --> 0:06:57.960 you can work out your own rules. You know, this 0:06:58.040 --> 0:07:00.359 is not a hard and fast way of doing You know, 0:07:00.480 --> 0:07:03.320 everyone is different and people in different stages of their lives. 0:07:03.360 --> 0:07:05.920 So for example, you know a young family like you 0:07:06.000 --> 0:07:08.360 and I, this is going to be a lot harder 0:07:08.360 --> 0:07:12.000 because we have you know, kids' activities that we need 0:07:12.080 --> 0:07:14.000 to do and be a part of. And you know, 0:07:14.040 --> 0:07:17.440 a child's not going to understand, sorry, we can't buy 0:07:17.560 --> 0:07:19.520 Jimmy a birthday present even though you're going to his party, 0:07:19.520 --> 0:07:21.200 because we're doing this no spend yere like. 0:07:21.160 --> 0:07:23.920 We'll just send them some best wishes kids love that. 0:07:24.800 --> 0:07:26.960 Make them a card. So that's going to be a 0:07:27.000 --> 0:07:29.200 lot harder for younger families. So you would make maybe 0:07:29.200 --> 0:07:32.360 the rules a little bit more relaxed, whereas say singles 0:07:32.480 --> 0:07:35.080 living at home. If you're lucky enough, you know you 0:07:35.160 --> 0:07:37.120 might be able to be able to do this realistically 0:07:37.120 --> 0:07:40.120 and go fairly aggressively. And I believe you know, the 0:07:40.560 --> 0:07:44.160 person who wrote that story for the Sydney Morning Heralds 0:07:44.160 --> 0:07:47.280 that you know is someone who's I think you know 0:07:47.600 --> 0:07:50.560 single independent person that was has that ability to make 0:07:50.560 --> 0:07:55.120 those changes quite easily and doesn't have those financial obligations 0:07:55.160 --> 0:07:58.000 necessarily on their shoulders. And then if you look at 0:07:58.000 --> 0:08:01.160 someone like who's are self funder retiree, you know they 0:08:01.240 --> 0:08:03.960 could cut back on things, you know, the luxuries of retirements, 0:08:03.960 --> 0:08:07.280 such as you traveling as much or going out like 0:08:07.360 --> 0:08:10.160 certain hobbies that are quite expensive. So everyone is in 0:08:10.160 --> 0:08:12.360 a different situation. You've got to kind of create your 0:08:12.360 --> 0:08:15.920 own rules and find that healthy strike of balance between 0:08:16.000 --> 0:08:19.360 something that's challenging enough but also realistic so that you 0:08:19.360 --> 0:08:21.720 can actually stick to it and go the distance with it. 0:08:22.000 --> 0:08:25.000 Okay, so we would be realistically looking at things like 0:08:25.520 --> 0:08:28.320 excess clothes, clothes just for the sake of buying them, 0:08:28.560 --> 0:08:31.080 as opposed to kind of the essentials, buying your underwear, 0:08:31.080 --> 0:08:33.200 buying your shoes, that kind of thing that you actually 0:08:33.200 --> 0:08:35.320 need to get around. You probably need more than just 0:08:35.400 --> 0:08:37.960 undies and shoes, shoes to go to work, but anyway, 0:08:38.679 --> 0:08:41.800 take away food, those kinds of things. Those are pretty 0:08:41.880 --> 0:08:45.559 kind of clearly defined as discretionary spending items and entertainment, 0:08:46.040 --> 0:08:47.680 not going to the movies or not going to a 0:08:47.720 --> 0:08:51.280 concert or things like that, which would be tough to 0:08:51.320 --> 0:08:54.160 do for a lot of people, but they are things 0:08:54.160 --> 0:08:57.160 that you could. You would get quite a good feeling 0:08:57.480 --> 0:09:00.480 from not doing those because I'm depriving myself, but I'm 0:09:00.480 --> 0:09:02.360 doing it for a good cause. 0:09:02.440 --> 0:09:04.839 But also you need to understand and respect where you 0:09:04.960 --> 0:09:09.000 come from. So someone who has you know, spent, has 0:09:09.040 --> 0:09:11.719 a spending problem, a shopping problem, for example, and just 0:09:12.080 --> 0:09:14.480 buys all the time, then cutting it down to one 0:09:14.559 --> 0:09:18.679 item per month is a huge transformation, whereas for someone 0:09:18.720 --> 0:09:22.440 else that one item per month is still excessive and unnecessary. So, 0:09:23.080 --> 0:09:25.840 you know, be kind to yourself. This is about you know, progress, 0:09:25.880 --> 0:09:26.400 not perfection. 0:09:26.920 --> 0:09:31.280 Okay, all right. The big benefit of doing it is 0:09:31.320 --> 0:09:34.960 it it is a spending reset, really, isn't it. If 0:09:35.000 --> 0:09:37.199 you were to do it, even if you're not successful, 0:09:37.240 --> 0:09:40.000 not one hundred percent successful, it would make you stop 0:09:40.040 --> 0:09:42.120 and take stock of what you are spending. Right. 0:09:42.200 --> 0:09:45.199 Oh, the awareness it creates could be very powerful and 0:09:45.320 --> 0:09:47.960 something that you could use to reset your financial habits 0:09:48.000 --> 0:09:49.679 that take you through the rest of your life. You know, 0:09:50.000 --> 0:09:52.360 there's a lot to be learned from doing these types 0:09:52.400 --> 0:09:55.720 of challenges, and not even necessarily a you know, no spend, 0:09:55.720 --> 0:09:58.400 no buy challenge. Even you know, I did a recently 0:09:58.400 --> 0:10:01.439 a seven day mortgage challenge. I did my own Sugar 0:10:01.480 --> 0:10:04.679 Mama ten day financial Reset challenge. I learned so much 0:10:04.720 --> 0:10:08.160 about myself. So there's lots of non non tangible things 0:10:08.160 --> 0:10:10.960 that come from doing these particular challenges. But you know, 0:10:11.280 --> 0:10:13.640 at the end of the day, the key benefits, I 0:10:13.679 --> 0:10:17.040 would say are obviously number one. Obviously, you know you're 0:10:17.240 --> 0:10:20.679 financial you might be protecting your savings, growing your savings, 0:10:20.800 --> 0:10:24.520 or even accelerating your financial journey, because that money that 0:10:24.559 --> 0:10:27.360 you've managed to save can then go towards some of 0:10:27.360 --> 0:10:29.520 your financial goals, such as paying off debt, or building 0:10:29.600 --> 0:10:33.200 up your emergency money or investing. So you know, if 0:10:33.240 --> 0:10:35.480 you can make sure that those savings at the end 0:10:35.520 --> 0:10:38.240 of the year are there, you can quarantine them and 0:10:38.280 --> 0:10:40.640 actually look at that bank account and go, wow, this 0:10:40.679 --> 0:10:43.200 is how much I was able to save from doing 0:10:43.240 --> 0:10:46.560 this challenge. Great, don't go then blow it on something 0:10:46.760 --> 0:10:50.520 some stuff. Use that for your financial wellbeing. And then, 0:10:50.520 --> 0:10:53.360 obviously the psychological benefit, which I think is the most 0:10:53.400 --> 0:10:57.400 beautiful and powerful one, is gaining that deep understanding and 0:10:57.440 --> 0:11:00.160 awareness of how you spend money, and you know why 0:11:00.240 --> 0:11:02.920 you spend money, what are your triggers, what are the 0:11:03.000 --> 0:11:05.720 emotional impulses that go on for you to go and 0:11:05.840 --> 0:11:09.120 have a reckless shopping expedition or blow a whole pile 0:11:09.120 --> 0:11:11.320 of money on something that you don't actually value. So 0:11:11.679 --> 0:11:14.640 you know, this can actually allow you to become incredibly 0:11:14.640 --> 0:11:18.360 intentional with your money. You're looking at me like you 0:11:18.520 --> 0:11:20.640 just did a whole blow of crap or that's actually. 0:11:20.400 --> 0:11:22.400 Really interesting now I was actually thinking about what you 0:11:22.440 --> 0:11:25.280 said about eight minutes ago about the limited number of 0:11:25.320 --> 0:11:29.240 clothes that I bring in. It is because you lectured 0:11:29.280 --> 0:11:32.200 me eighteen months ago now on the importance of using 0:11:32.240 --> 0:11:37.760 a capsule wardrobe, and I took your words to heart. 0:11:38.200 --> 0:11:38.880 That's rubbish. 0:11:38.920 --> 0:11:42.320 You had a capsual wardrobe before we met, and god, 0:11:42.320 --> 0:11:43.640 it couple the bull over my eyes. 0:11:43.880 --> 0:11:45.560 But now I have a name to attach to it. 0:11:45.559 --> 0:11:47.680 It's a capsule wardrobe and KNA told me to do it, 0:11:47.720 --> 0:11:50.000 So therefore I'm allowed to just wear the same kind 0:11:50.000 --> 0:11:51.800 of two or three shirts and the same kind of 0:11:52.120 --> 0:11:54.440 three pants and two pairs of shoes. 0:11:54.920 --> 0:11:56.360 You are all right, I'll give you that. 0:11:56.440 --> 0:11:58.280 Thank you. It is a sound financial decision. 0:11:58.320 --> 0:11:58.520 All right. 0:11:58.520 --> 0:12:00.760 We're going to take a quick break, and when we 0:12:00.800 --> 0:12:03.120 come back, I want to find out kind who a 0:12:03.200 --> 0:12:05.720 challenge like this is most suited to, who would benefit 0:12:05.800 --> 0:12:08.960 most from it, and also how to overcome some of 0:12:08.960 --> 0:12:12.240 the challenges that you would have in not just committing 0:12:12.240 --> 0:12:14.480 to it, but sticking to it for any period of time. 0:12:14.720 --> 0:12:16.559 So we've still got a bit to couple. We'll be 0:12:16.600 --> 0:12:25.280 back in a moment. Can we are talking today about 0:12:25.559 --> 0:12:28.320 a no buy year or a no spend year where 0:12:28.320 --> 0:12:33.400 you commit to not spending money on non essential things 0:12:33.600 --> 0:12:35.640 really across the course of a year, and the fact 0:12:35.640 --> 0:12:39.000 that it is really a spending reset for a lot 0:12:39.000 --> 0:12:42.920 of people. But who is this most suited to. Are 0:12:42.920 --> 0:12:46.079 we talking about people that might have a bit of 0:12:46.080 --> 0:12:49.640 a spending problem and have identified themselves as being perhaps 0:12:50.000 --> 0:12:53.439 a little bit too willing to indulge in kind of 0:12:53.520 --> 0:12:58.040 impulse buys, or is it perhaps households might be living 0:12:58.120 --> 0:13:00.640 kind of paycheck to paycheck and want to go, Okay, 0:13:00.679 --> 0:13:03.640 we need to reset here. We need to find where 0:13:03.640 --> 0:13:06.160 there is a bit of room in the budget. Let's 0:13:06.200 --> 0:13:07.520 commit to this challenge. 0:13:07.960 --> 0:13:10.920 I think to answer your question both O you know, 0:13:11.040 --> 0:13:13.600 anyone that knows they need to do something about the 0:13:13.640 --> 0:13:16.320 way that they engage with money and use money and 0:13:16.360 --> 0:13:18.280 to a certain degree abuse money. You know, I don't 0:13:18.280 --> 0:13:20.400 say that with any judgment. You know, something like this 0:13:20.920 --> 0:13:24.439 in a gentle way could be really beneficial because essentially. 0:13:24.120 --> 0:13:24.920 It's a detox. 0:13:25.960 --> 0:13:29.640 Then I would say anyone who's curious, you know, anyone 0:13:29.679 --> 0:13:32.160 who thinks, you know what, this could be really helpful 0:13:32.200 --> 0:13:36.200 for us in you know, getting ready ready of any waste, 0:13:36.240 --> 0:13:39.439 any creating any awareness as to have triggers for spending 0:13:39.480 --> 0:13:42.280 money and blowing money, and you know, allowing us to 0:13:42.320 --> 0:13:44.880 maybe save up a lot of money that we can 0:13:44.920 --> 0:13:47.320 then use to catch up maybe for previous lost time 0:13:47.880 --> 0:13:50.480 with their financial journey. So yeah, I would say if 0:13:50.480 --> 0:13:52.120 you've got a problem and you want to address it, 0:13:52.160 --> 0:13:54.800 and you're willing to do the work and face the music, 0:13:55.240 --> 0:13:59.120 and for anyone that's curious as to not just the 0:13:59.160 --> 0:14:04.000 financial benefit but also the mindfulness and the psychological benefits 0:14:04.480 --> 0:14:07.199 from doing this. Because I've done this not a full year, 0:14:07.240 --> 0:14:10.680 but obviously I've done Frugal February I think nine years 0:14:10.720 --> 0:14:12.120 in a row, maybe ten. 0:14:12.360 --> 0:14:12.880 That's a lot. 0:14:13.040 --> 0:14:15.600 And every time I do it, I learned something new 0:14:15.640 --> 0:14:19.640 about myself and it definitely keeps me in check when 0:14:19.680 --> 0:14:20.760 it covered for the rest of the year. 0:14:21.480 --> 0:14:25.840 One of the big challenges though, would have to be motivation, right, 0:14:25.880 --> 0:14:28.920 because like anything that's a bit of a trend for instance, 0:14:29.000 --> 0:14:32.520 or anything that you can start strong with something like this, 0:14:32.600 --> 0:14:35.440 you go, yep, committing to a no by year. You 0:14:36.080 --> 0:14:38.680 often see it with people when they get like a 0:14:38.840 --> 0:14:40.960 like a fitbit or something like that, right, and they 0:14:41.000 --> 0:14:43.080 go and I'm monitoring my steps and I'm going to 0:14:43.160 --> 0:14:44.920 hit my ten thousand steps every day, and they do 0:14:44.960 --> 0:14:47.000 it every single day for the first week, and then 0:14:47.040 --> 0:14:48.800 it just drops off and they're at eight thousand, and 0:14:48.800 --> 0:14:50.520 then all of a sudden, three weeks later, it's just 0:14:50.640 --> 0:14:53.600 kind of sitting on the couch again. It feels like 0:14:53.640 --> 0:14:55.520 the same kind of thing that you would hit this 0:14:55.760 --> 0:14:58.320 really hard. I'm doing a no by year. You'd plaster 0:14:58.440 --> 0:15:01.640 it all over social media and within a month you're 0:15:01.720 --> 0:15:04.120 kind of heading out to dinner at restaurants and things 0:15:04.160 --> 0:15:06.760 like that. Forgot about it, yeah indeed, and suddenly it's 0:15:06.800 --> 0:15:08.080 just kind of well, I'm just going to go back 0:15:08.080 --> 0:15:10.160 and delete that post I made about it on Instagram. 0:15:10.680 --> 0:15:14.360 How do you stay motivated for the full year? 0:15:15.560 --> 0:15:19.680 Look, I have my questions about how sustainable this is. 0:15:20.120 --> 0:15:22.160 But to anyone who's thinking of doing this or has 0:15:22.160 --> 0:15:24.400 already started doing this, make sure you've put a goal 0:15:24.800 --> 0:15:27.440 a goal, oh yeah, you know, so that you know 0:15:27.520 --> 0:15:30.280 exactly why you're doing this. You know, for some people 0:15:30.320 --> 0:15:32.800 who might be like saving up a deposit to buy 0:15:32.840 --> 0:15:35.200 their first home. For some people, it might be about 0:15:35.240 --> 0:15:38.440 clearing toxic debt. For some people, it might be about 0:15:38.480 --> 0:15:42.640 paying for an amazing holiday overseas. Traveling for five months. 0:15:43.360 --> 0:15:47.000 Know your why because you have that why is linked 0:15:47.000 --> 0:15:48.760 to that goal, and the goal is something that you 0:15:48.760 --> 0:15:51.160 can see and you can track your progress along the 0:15:51.200 --> 0:15:53.640 way and know that you know what the hard work 0:15:53.720 --> 0:15:55.720 is paying off. It's getting without making progress. 0:15:56.360 --> 0:15:58.800 You're tying it to something positive, then aren't you rather 0:15:58.880 --> 0:16:01.360 than just doing something which is even the name of 0:16:01.400 --> 0:16:04.920 it is negative. No by year like, there's negativity attached 0:16:04.960 --> 0:16:07.000 to this right from the start. But if you're tying 0:16:07.040 --> 0:16:09.640 it to something positive, like a like a savings goal 0:16:09.800 --> 0:16:12.640 or a trip or something like that, then it flips it. 0:16:13.320 --> 0:16:15.880 This isn't about punishing yourself. You can't go into this 0:16:16.000 --> 0:16:20.200 challenge with that mindset. This is about like sacrificing and punishment, 0:16:20.320 --> 0:16:23.520 and you know it's a way of undoing your sense 0:16:23.560 --> 0:16:25.840 of self worth to rebuild yourself. You can't look at 0:16:25.880 --> 0:16:28.640 like that. This is it is a challenge to help 0:16:28.680 --> 0:16:31.600 improve your financial situation. It's a challenge to help improve 0:16:31.680 --> 0:16:35.120 your the psychology around money and your money mindset. It's 0:16:35.160 --> 0:16:39.120 a positive thing. It's exciting. It's called a challenge for 0:16:39.160 --> 0:16:39.520 a reason. 0:16:39.640 --> 0:16:42.680 Are you alarmed at how easily now I talk about 0:16:42.720 --> 0:16:46.479 money mindsets and positivity and the negativity attached to the language. 0:16:46.720 --> 0:16:48.440 I think there's a very real chance that I'm in 0:16:48.480 --> 0:16:49.880 fact turning into you. 0:16:50.520 --> 0:16:53.200 I sometimes think I am turning into you. So this 0:16:53.320 --> 0:16:54.920 is really concerning. 0:16:55.000 --> 0:16:58.040 So it's a really scary thought. The hybrid of where 0:16:58.080 --> 0:17:02.800 we would meet in the middle just oh, very unpleasant. 0:17:03.280 --> 0:17:06.640 It's extreme, isn't it? Not the hybrid of you and I? 0:17:07.240 --> 0:17:11.560 But the idea of going without spending for a full year, 0:17:12.600 --> 0:17:16.680 is there kind of smaller steps that we can take. 0:17:16.720 --> 0:17:19.399 And I mentioned before the idea of maybe trying it 0:17:19.440 --> 0:17:21.480 out for a month or something. Is that the way 0:17:21.560 --> 0:17:23.960 to go to kind of ease into it, Because you 0:17:24.000 --> 0:17:26.800 wouldn't recommend someone if they've got a bad habit. It's 0:17:26.840 --> 0:17:29.160 not necessarily the most effective way. Just to say cut 0:17:29.200 --> 0:17:31.800 it out entirely. Going cold turkey is not necessarily going 0:17:31.840 --> 0:17:33.320 to be the most effective way to get rid of it. 0:17:33.359 --> 0:17:35.639 You've got to be realistic about the way you're doing this. 0:17:36.320 --> 0:17:41.080 Absolutely, and I'll say this, most households right now are 0:17:41.200 --> 0:17:45.720 living like this. Yeah, they are tightening the belt. They're 0:17:45.760 --> 0:17:49.240 saying no, they're going without. They're looking to save They've 0:17:49.240 --> 0:17:52.760 cut all those non essentials eight years ago from you 0:17:52.800 --> 0:17:54.680 know when interest rates started going up in the rising 0:17:54.680 --> 0:17:56.480 cost of living. So a lot of people at you 0:17:56.600 --> 0:17:58.399 doing this already, So this is not the right challenge 0:17:58.400 --> 0:18:00.280 to them because they're they're living and breathing it every 0:18:00.280 --> 0:18:04.280 single day. So if someone wants to do this, what 0:18:04.359 --> 0:18:08.080 I recommend is bursts and spurts. Lean into it. So 0:18:08.160 --> 0:18:10.320 you would say, okay, well, let's do for each month, 0:18:10.400 --> 0:18:12.919 let's do one week or one weekend where we do 0:18:12.960 --> 0:18:15.640 a no spend. I will say on the other side 0:18:15.640 --> 0:18:18.000 of that, though, don't then go and save a whole 0:18:18.040 --> 0:18:20.080 pile of money one weekend or one week to then 0:18:20.880 --> 0:18:24.160 you know, celebrate with a sort of rebel back, which 0:18:24.200 --> 0:18:26.720 is actually was a problem for me with Frugal February. 0:18:26.760 --> 0:18:29.600 I would be so bitter and angry by the end 0:18:29.600 --> 0:18:33.000 of Frugal February and sur fill with resentment. I'd then 0:18:33.080 --> 0:18:35.159 kind of just this bad girl would come out of 0:18:35.160 --> 0:18:39.240 me in massive It's free, So you know that's not 0:18:39.359 --> 0:18:42.399 the purpose behind is that, don't even bother wasting your 0:18:42.440 --> 0:18:44.520 time and energy doing something like this if you go 0:18:44.640 --> 0:18:47.520 into rebel like I used to, but you know, so 0:18:47.960 --> 0:18:50.399 lean into it to do a short shop burst, do 0:18:50.440 --> 0:18:53.720 a ten day challenge, do it, you know, weekend, Try 0:18:53.760 --> 0:18:55.680 a month, maybe try three months if you want. And 0:18:55.760 --> 0:18:57.520 as you get better and better and understand how to 0:18:57.560 --> 0:19:00.440 do this that suits you and your circumstances, the people 0:19:00.480 --> 0:19:02.640 around you, and you can keep going with it. 0:19:03.800 --> 0:19:07.000 One last question, actually probably two more. I don't like 0:19:07.080 --> 0:19:11.520 to limit myself, but this has the potential to affect relationships, 0:19:11.600 --> 0:19:14.840 doesn't it. It has the potential to kind of impact 0:19:15.080 --> 0:19:18.320 the relationship you might have with your friends, your social activities. 0:19:18.359 --> 0:19:21.200 If suddenly all your friends are going out for a 0:19:21.240 --> 0:19:23.240 drink after work or something and saying no, I can't, 0:19:23.280 --> 0:19:26.320 I'm doing a no. By year, you have the potential 0:19:26.359 --> 0:19:29.560 to suddenly end up a not only yeah, it'll be 0:19:29.720 --> 0:19:31.120 a Nigel by the end of the year. 0:19:31.560 --> 0:19:33.520 I no offense to anyone called Nigel. 0:19:33.560 --> 0:19:36.080 Of course, I don't think that's really used anymore. The 0:19:36.200 --> 0:19:40.040 Nigel no friends, No, I hope not for Nigel's sake. 0:19:40.720 --> 0:19:42.720 If we have any Nigels listening, please get in touch 0:19:42.760 --> 0:19:45.600 and let us know whether you have friends, and let. 0:19:45.480 --> 0:19:47.679 Us know that we please know that we're not offending you, 0:19:48.240 --> 0:19:51.760 mocking you for your name. More importantly, sorry, I bit 0:19:51.760 --> 0:19:55.880 of sensitivity here, Sorry, Nige. Go on, look, I will 0:19:55.880 --> 0:19:59.400 say this. When I first did Frugal February, I found 0:19:59.440 --> 0:20:01.520 it really and I had to learn quickly how to 0:20:02.440 --> 0:20:05.560 do frugal February, probably because I had that problem. You know, 0:20:05.640 --> 0:20:07.560 Tom would be going, let's go out for dinner. You know, 0:20:07.680 --> 0:20:10.280 everyone's going out for dinner together at this restaurant next week, 0:20:10.640 --> 0:20:13.520 and I'd have to say, I can't. I'm doing Frugal February, 0:20:13.640 --> 0:20:16.960 and so I wouldn't go. So I had to start 0:20:17.200 --> 0:20:20.639 being really careful with doing Frugal February and not let 0:20:20.680 --> 0:20:24.080