For many of us, financial clutter sneaks into our lives gradually. A few extra purchases here, a subscription or two there, and before we know it, our bank statements are filled with line items that do not align with the life we truly want to live.
The fact that Americans now owe more than $1.1 trillion in credit card debt is a pretty good indicator of that fact.
The good news is that we can regain control. By focusing on intentional decision-making, we can simplify our finances, reduce unnecessary spending, and refocus our resources on what matters most.
There are lots of articles you can read about taking back control of your finances. Maybe you have some of them helpful (and some not-so-much). But I want to take a different approach.
I am going to offer 12 different monthly challenges that you can try out to bring more intentionality in your finances. I think all of them should be tried at some point. But pick just one, and for the next month, give it a try. For the month after that, choose a new one.
Here are 12 monthly challenges to help you declutter your spending, one step at a time.
1. Track Every Dollar
Before we can declutter our spending, we need to understand where our money is going. For one month, track every single purchase, no matter how small. Whether it’s a coffee, a streaming service, or a grocery run—write it down or use an app to track it. You might be surprised by how much you spend without even realizing it.
Tracking our spending is one of the foundations of financial intentionality. It gives us the awareness we need to identify waste and make more intentional choices moving forward. By the end of the month, you’ll have a clear picture of where your money is going and where you can cut back.
2. Pay with Cash Only
In a world dominated by digital transactions, it’s easy to lose sight of how much we’re really spending. For one month, challenge yourself to pay with cash only. The idea was popularized by Dave Ramsey. And it’s absolutely true—using physical money makes each transaction more tangible and forces us to think twice before making impulsive purchases.
Set a budget at the beginning of the month, withdraw the cash, and stick to it. When the cash is gone, you stop spending. This challenge helps us reconnect with the real value of money and curbs the temptation to overspend.
3. No Spend Month
A “No Spend Month” is a powerful way to reset your spending habits. The challenge is simple: aside from necessities like groceries, utilities, and bills, you don’t spend money on anything else for the entire month. No new clothes, no eating out, no entertainment expenses—just the essentials.
This challenge forces us to differentiate between needs and wants. It helps us realize how much we spend out of habit or convenience rather than necessity. Plus, you’ll likely end the month with more savings than you expected. If this sounds difficult, you’ll be surprised how it is not. As a matter of fact, I have friends who have gone an entire year.
4. Declutter Your Possessions
There’s an undeniable connection between the things we own and the money we spend. For one month, focus on decluttering your home and getting rid of anything you no longer need. Accomplish as much as you can. As you sort through your possessions, consider how much money was spent on things that no longer bring value to your life.
You’ll be surprised how decluttering your physical space often leads to decluttering your spending habits. By the end of the month, you’ll be surrounded by only the things that matter to you, and you’ll be more mindful of future purchases.
5. Cut Unnecessary Subscriptions
Monthly subscriptions have a way of piling up. Whether it’s streaming services, apps, or memberships, we often forget about them, and they quietly drain our bank accounts. Spend a month going through every subscription you’re signed up for and cancel anything that’s not essential.
This challenge will not only save you money, but it will also free up mental space. By simplifying the number of services and memberships you’re paying for, you can focus your time and resources on what truly adds value to your life.
6. Pay Off Debt
Debt can feel like a weight that holds us back from achieving financial freedom. Dedicate one month to making significant progress on paying down any outstanding debts. Whether it’s credit cards, student loans, or car payments, create a plan to pay off as much as possible during this challenge.
Cut back on every unnecessary expense and use the extra cash to chip away at your debt. For one month, skip expensive coffee, eating out, and unnecessary purchases. Find a side-hustle or even a part-time job. Focus as much energy as you can—for one month—to pay down as much debt as you can. You might be shocked at how much progress you can make.
7. Save Every Extra Dollar
This month, challenge yourself to save every extra dollar you can. Whether it’s money saved from cutting back on groceries or skipping a coffee run, put it all into savings. Even small amounts can add up quickly when we’re intentional about it.
At the end of the month, you’ll be amazed at how much you’ve saved simply by making small, thoughtful adjustments to your spending. This challenge helps build the habit of saving and sets you up for long-term financial success.
8. Meal Plan and Cook at Home
Eating out is one of the easiest ways to let spending spiral out of control. For one month, commit to meal planning and cooking all your meals at home. Not only will you save money, but you’ll also have more control over the quality of the food you’re eating.
Plan your meals at the beginning of the week, make a shopping list, and stick to it. You’ll likely find that meal planning reduces food waste and makes grocery shopping more efficient. Plus, it’s a great way to reconnect with the simple pleasure of a home-cooked meal.
9. Invest Weekly in $VOO
Investing doesn’t have to be complicated. For one month, start the habit of setting aside a small amount each week to invest in the stock market, specifically in an index fund like $VOO. Even if it’s a modest amount, the habit of investing regularly can set you up for long-term financial growth.
Apps like RobinHood make investing in the stock market easier than ever.
Investing in something simple like $VOO (which tracks the performance of the S&P 500) allows you to take a step toward securing your financial future. The key is consistency—making small, regular contributions over time will lead to significant results.
10. Shop Secondhand
For one month, commit to shopping secondhand for anything you need. Whether it’s clothes, household items, or furniture, explore thrift stores, online marketplaces, and consignment shops before making any new purchases.
Shopping secondhand not only saves money but also reduces waste and supports sustainability. It’s a great way to find unique items and practice intentional spending, ensuring that each purchase aligns with your values.
11. Sell Unused Items
We all have items in our homes that we no longer use but are still in good condition. This month, take the time to sell those items. Whether it’s through a yard sale, online marketplaces, or consignment stores, turning unused possessions into cash can declutter both your home and your finances.
The extra money can be used to pay off debt, invest, or save. And the process of letting go of things that no longer serve you will reinforce the importance of mindful spending moving forward.
12. Set a Monthly Budget—and Stick to It
For the final month, challenge yourself to set a strict budget and stick to it. Decide in advance how much you’ll spend on groceries, entertainment, transportation, and other expenses, and then track your progress throughout the month.
Budgeting helps us live within our means and ensures that our spending aligns with our goals and values. By sticking to a budget, we can avoid financial clutter and create more room for the things that truly matter.
By focusing on one challenge each month, you can gradually declutter your finances and create lasting habits that will help you spend more intentionally.
At the end of the year, you’ll not only have more control over your spending, but you’ll also have built a foundation for a more intentional, purpose-driven life.
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