Since February is a short month, it’s a great time to participate in a frugal challenge. The frugal challenge is similar to a no-spend challenge, but it’s not as intense. If better financial planning is among your New Year’s resolutions, or if you simply want to find ways to save more money, try committing to one of these five challenges for the entire month. Committing to just one of these challenges can help you save more money in February, but committing to all of them can really help you save money in your budget.
Eating at Home Instead of Dining Out
For some people, this challenge may be the easiest on the list. People who enjoy cooking or have specific dietary constraints might already mostly dine at home. As a challenge, try to eat all of your meals at home for the entire month. This challenge should include your lunches at work, as well as your dinner meals.
Planning makes this so much easier. Create your monthly meal plan and shopping list to simplify things. You could try batch cooking meals for the week on the weekends or use a slow cooker to reduce the time you need to spend in the kitchen. Leftovers from the previous night can be used as lunch the following day. Salads and sandwiches are quick and easy to prepare and keep well in lunchroom fridges.
You will be surprised by how much money you can save when you stop dining out, but home-cooked meals are often healthier than fast-food options, so this challenge can help you feel better health-wise too.
Note: According to one study, households that prepare six or more dinners at home spend $57 less per month on food overall per person than households that prepare three or fewer dinners at home each week. For a family of four, that amounts to $228 monthly and $2,736 annually.
Reducing Your Monthly Bills
It may be easier than you think to reduce your monthly bills. If you make an effort to lower your bills in February, those savings will continue with you throughout the year. Call your insurance and utility providers to see if there is a way to reduce your monthly bills. This may involve trimming some of your services. Set aside time this month to see if you can cut out cable entirely or cancel a streaming subscription or two.
Do the same with your mobile provider, even if you’re under contract. You might not be able to switch this month, but you can still look for options and plan how to save money once your contract is up.
Note: Researching options may also help you negotiate lower rates with your current mobile provider. Some companies may negotiate with you if you have a better offer from a competitor.
There’s no harm in asking for a lower rate on any of your services. Many companies have retention plans and other promotional offers; you just have to ask about them. The worst that can happen is they tell you that you currently have the lowest rate available.
Freezing Spending in One Category
This is similar to no-spending, but instead of stopping all spending, you can simply choose one or two categories to cut back in your budget for the entire month. This could be entertainment, clothing, or any other category you feel you are overspending in.
When…
Setting Your Goals for the Month, Try to be as ambitious as possible. Start with your largest spending categories and ask yourself if you could go a month without these expenses. Cutting back on your spending can greatly help you realize how little you can get by without each month. This can help you reduce your spending after the frugal February.
Do It Yourself
Challenge yourself to find three services or products you can do or make yourself. If you have a housekeeper, try canceling the service for a month and save the money by doing the chores yourself. Set aside time to learn how to change your car’s oil on your own. If you enjoy fresh bread and buy it regularly from a bakery, try baking bread at home. By the end of the month, you’ll have a better idea of what’s worth spending your money on and what’s worth doing yourself.
Note: DIY projects can also help you discover a new skill or hobby that you truly enjoy, regardless of the money you save.
Set a Goal to Save More
You can guide your frugal February planning by setting a goal for the amount you aim to deposit into your savings account throughout the month. The amount you choose depends on your income, but be ambitious – you want to feel the difference in your spending.
It can be as simple as rounding up cash amounts and keeping the change to put into savings. Set up a chart and track your progress as you put money into your savings account each week. This can help you start your emergency fund if you don’t already have one. If you find it easy enough to stick to your saving goals, keep achieving them even into March.
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Sources: The Balance uses only high-quality sources, including peer-reviewed studies, to support the facts in our articles. Read our editorial process to learn more about how we verify facts and maintain the accuracy, reliability, and quality of our content.
Arpita Tiwari, Anju Agarwal, Wesley Tang, and Adam Drewnowski. “Cooking at Home: A Strategy for Adhering to the U.S. Dietary Guidelines at No Additional Cost.” American Association for Preventive Medicine.
Source: https://www.thebalancemoney.com/frugal-february-challenge-2385947
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