Estimated reading time: 14 minutes
Who knew a No Spend Month Challenge would confront our financial strengths and weaknesses? But that’s what it’s all about.
Motivate Yourself With A Money Challenge To Build Financial Strength
Our no spend challenge month in September started pretty normal but came with mixed results.
For anyone new to Canadian Budget Binder last month, I blogged about beginning a no-spend challenge month for September.
One reader mentioned that doing a no-spend month challenge might be a tough time since it was back to school.
There is much merit in what she has said, and I’ll explain why shortly, but I never gave much thought to the timing.
Learn From Mistakes
We initially walked into the no-spend challenge with hesitation, as I knew it would be as tough as a challenge should be.
I wanted to be transparent with my readers because I’m not here to lie and tell you we did it when we did not.
We are human and make mistakes just like everyone else.
Personally, I find doing a No Spend challenge to be motivating when nobody knows about it.
That way they can’t do the, “I told you so” if you mess it up.
With the blog we are transparent so if we screw up, we screw up and that’s ok. – Mr.CBB
Also, before we started budgeting in 2012, our system was a disaster and very disorganized.
Learning about budgeting methods and what worked best for us took time.
We learned that a budget binder would help us survive and pay off debt, including our mortgage.
That meant we needed to document everything we were doing and spending, including creating monthly and yearly goals.
Beginning this no-spend challenge month was initiated too fast, although we had all our ideas and thoughts on paper.
We failed even though we created a no-spend challenge budget binder printables tool and believed we were armed with shields.
That’s right, we failed our no-spend challenge, and we’re okay with that because we knew it would be a significant challenge for us.
Let’s look at the areas of our budget that hit us the hardest and why we spent the money.
Problem Areas From Our No-Spend Challenge
Overspend Budget Categories For September
Birthday
Our son has a birthday in September, and we have spent too much money.
This was 100% our fault; however, we purchased a sensory swing tree tent for his bedroom that cost us $150 plus tax.
It wasn’t in the plans, but we’re waiting on the diagnosis and are trying to find ways to provide him with a space that works for his needs.
Then we found the sensory sock, which we thought was perfect for him since he’s always trying to get into our pillowcases with his legs.
He loves the sensory sock so much that he asks to be put in it.
It helps him regulate his body; he rolls and jumps around in it and then takes it off when he’s ready.
So, we spent more than we should have, including Switch video games, a steering wheel controller, socks, underwear, and a book.
We do save for birthdays in our projected expenses, but we fell short of the amount we put aside for his birthday gifts.
On a good note, we got 20x the Optimum points when purchasing the Switch video game from Shoppers Drug Mart.
Groceries
We went to Costco. That was the big problem because we tend to stock up on items, so we don’t have to return often.
This month, we bought extra salami for our little guy, which is pretty much all he eats, as well as hotdogs.
Groceries have always been our downfall, especially if we have a grocery list and see deals.
Going into Costco was a big test for us, and we failed, but we are stocked up for next month.
At Zehrs, we stocked up on bacon. It was a manager sale of $1.99 for 500g of bacon, and I bought 10 packs.
I honestly couldn’t resist, and I was hoping we’d be under budget, but we weren’t.
See, it’s SO hard.
What’s an item you wouldn’t pass up if you saw it dirt cheap and you knew you could freeze it?
Clothing
As my CBB reader mentioned, September would be a challenge with back-to-school clothing and supplies, and it was.
A trip to Marshall’s saw us spend money on new jogging pants, socks, and t-shirts for the little guy.
The main reason was that he was so tall that his pants were too short but fit in the waist perfectly fine.
A month before school started, we both thought we’d be ok, but he grew, and the pants started to look funny on him.
We also went to Value Village and picked up a few items, including a new jacket, which we should have had the strength to say NO.
He has more jackets than he already needs.
Health and Beauty
This is all Mrs. CBB, haha!
She purchased a Neostrata face wash and hair dye that was on sale with a coupon reg 15.99 sale $8.99 minus $2 coupon.
Miscellaneous
These were expenses that I didn’t account for, such as two new charge cables for my phone and our son’s tablet, along with a new case for my phone.
Healthcare
It seems high but we are paying out of pocket for our son’s medical expenses as they come.
We did not project for them in 2020, as we did not know.
This expense was not considered a part of the no-spend month challenge as it was necessary.
No-Spend Challenge Month Tips
- Time your no spend month, so you don’t start one during a month where you know you will have to spend money
- Talk to your partner or spouse daily, and if you are single, talk with yourself about any problems.
- Write any thoughts or concerns along the way so you can reflect on them
- If a no spend month challenge is too much, plan for a week or two instead
Final Thoughts
So, what we’ve learned from this challenge is that we weren’t prepared enough.
We also needed to plan the timing better and develop smaller wins before tackling an entire no-spend month.
It made sense when Mrs. CBB told me that the no-spend month reminder here of intermittent fasting.
She had to practice doing one week, two weeks, and 21 days of water fasting to reach longer fasting goals.
The point is sometimes we try to jump into challenges or new adventures headfirst without proper training or grounding.
I feel the next time we do this challenge, we will start to slow with one week, no spending challenge with a report, then two weeks, and so on.
Never give up.
If you fail, find a better way to reach your goals, even if they differ slightly from the original plan.
Discussion: How have you successfully conquered and documented your no-spend month?
Please share any tips below to help us and anyone else working towards this goal.
Mr.CBB
Home Budget Income Report September 2020
Hi CBB readers,
As mentioned above, you’ll see where our money went in September and how we failed the No Spend Challenge for the month.
Things happen, and we move on and try again.
That’s that.
The good news is that we bumped up our accounts and emergency savings this month.
We also may have some medical bills that will eat into our savings, but I’ll keep you posted.
One of our monthly bills was $250 for a 30-minute visit with a doctor. Yes, it’s that expensive.
The best part is that we have to pay another $250 to see him again to get the results of our son’s performance.
Ah well, sometimes there are financial happenings we can’t control, and that’s prices.
Mr.CBB
Home Budget Percentages
Our savings of 53.44% include investments and any savings for this month based on the net income of $9989.47.
We save money in our projected expenses for things that must be paid for in the coming months.
All of the categories account for 100% of our income, which shows that we accounted for all of our income in September 2020.
This type of budget is a zero-based budget where all the money has a home.
Monthly Home Budget Expenses
Below is a breakdown of our expenses, which helps us understand where all our money goes.
- Chequing– This is the bank account where all our debt gets paid. We use Simplii Financial, TD Canada Trust, and Tangerine Bank.
- Emergency Savings Account– This is a high-interest savings account.
- Regular Savings Account– This savings account holds our projected expenses.
- Monthly Budgeted Total: $6392.68
- Monthly Net Income Total: $9989.47
- (Check out our Ultimate Grocery Guide to see where our grocery money goes)
- Projected Expenses: These are expenses we know we will pay for throughout the year = $852.91
- Total Expenses Paid Out: $6317.75
- Total Expenses Paid Out: Calculated is $9989.47 (total net monthly income) – $852.91 (projected expenses) –$2818.81 (savings to emergency fund) = $6317.75
- Actual Cash Savings going into Emergency Savings: Calculated is $9989.47 (total monthly net income) – $6317.75 (actual expenses paid out for the month) – $852.91 (projected expenses) = $ 2818.81
Monthly Budget and Actual Budget
Below you will see two tables, one is our monthly budget and the other is our actual budget.
This budget represents 2 adults and a 6-year-old son, plus retirement investments.
Budget colour chart: If highlighted in blue that means it is a projected expense.
Since May 2014, we’ve been mortgage-free, so much of our money will be directed at savings, investments, and renovations.
I appreciate that you enjoy this budget update each month, but I do hope you view this as an educational tool rather than comparing your financial numbers, as our situations are all unique.
Spending less than we earn and budgeting has been the easiest way for us to pay down debt and save money.
Monthly Home Budget Actual Expenses
2020 Home Budget Challenge
September Update: We are still 2 players in for the Budget Challenge 2020.
These two budget challengers will ride it out until the end of 2020.
Let’s look at what happened with their monthly budgets in September.
Budget Challenger #1
September has been all about taking two steps forward and two steps back regarding our finances.
I had great plans for hubby’s birthday but ended up sick in bed for 4 days instead.
Thank goodness for the grocery delivery. I got him some Juicy Jumbo hot dogs, Cheesy hoagie buns, and 6-inch lemon cheesecake for a few birthday treats.
He was happy with that!
This month I converted our Vistana timeshare options for the 2020 calendar year into Marriott Bonvoy points so we have more freebie travel, gift card purchases, and shopping in our future.
I love all things FREE!
Hubby had a week of vacation this month, but other than a bit of relaxing at home, his free time was devoted to running me to assorted medical appointments and doing a little banking via the local drive-thru ATMs.
Using Gift Cards
This year, I am using, rather than saving, our gift cards because you just never know which company is going to “go under” with the economic strain of the pandemic.
I would rather hang onto cash rather than some defunct gift card!
So, when I feel a little better, we will order a belated take-out birthday dinner for my hubby with one of our gift cards.
Bad news…more expensive medical costs are cropping up for me.
I expect they will wipe out all of the funds we had managed to put back into the emergency account to replace what we borrowed for the last unexpected medical expense.
So, next month, we will start again trying to replace the funds we are now borrowing for a second time. Sigh.
See what I mean…two steps forward and two steps back?
Mr.CBB- Good point about the gift cards, Mary, as we have many we should probably start using up. Maybe I’ll hold some contests.
Medical costs will be going up for us as well for our little guy if we put him through that program.
We’re still waiting on the psychiatrist’s results to see what he thinks is happening.
Nothing is easy in life, and these are the moments when emergency savings come in handy.
People don’t often realize that we must be prepared the best we can.
Happy Birthday to L, and I hope you both get to use those gift cards soon.
Budget Challenger #2
Hi Mr. CBB and all,
September was a bit of an expensive month for our family.
I was on vacation and stayed with the family during some of it, which helped keep costs down from my expense budget.
Originally, I had planned to go to Atlanta in October, but with things the way they are, that needed to be canceled.
Since we can travel within the Atlantic bubble, I decided to do some traveling anywhere I hadn’t gone before.
It was nice doing a staycation, but I missed being able to go where I had initially planned.
Who knows what the future holds, but it gave me more money to save for next year or the year after.
I hope to meet up with a friend in Atlanta next year and go on a European holiday for my 40th birthday.
Let’s wait and see if that pans out.
September Budget Breakdown
- Transportation: 17.48%
- Life: 42.79%
- Savings (short term) 6.89%
- Savings (long term) – remainder (will move it to long term savings when I know I don’t need it for anything)
- Household: 1.68%
As you can see, life was a lot higher than usual.
Vacation Expenses
I wasn’t sure how to track my vacation. Should I put the food, gas, etc, in the normal categories or just under life since that’s how I usually count vacation?
Here is a quick breakdown of what I spent on vacation:
- Housing $184
- Food $96
- Gas $109
- Transportation $99
I went through an Air Miles promotion to book my hotel nights and got about $35 back in nice points.
I have a ton of air miles banked up, so as mentioned before, hopefully vacationing next year will happen so I can use it towards my planned trip to Atlanta.
There’s not much to report this month; next month, I have firewood to pay for, and then in November and December, I have a ton of other things coming up for the house and car – it’s nice to be able to put savings aside as often as I can!
Mr.CBB– That’s great that you could get out for a little trip as we also need a holiday.
I love how you also used your Air Miles to cut some of the costs on your holiday.
Mary is the queen of saving for Air Miles, and I still need to do a blog post about them, but I’m not even close to understanding it all.