Australians love a month-long challenge, from Dry January to Plastic Free July. The most recent craze is No Spend September, which encourages people to stop their discretionary spending. However, going cold turkey can backfire, according to an RMIT economics expert.
Dr Meg Elkins, Senior Lecturer in Economics
"Just like crash dieting, No Spend September can have the opposite effect to what people want. Old habits can creep in, or a single slip-up can cause you to give up on the whole challenge.
"The goal should not be about deprivation but building sustainable long-lasting habits.
"No Spend September taps into 'fresh start' psychology, which is particularly well-timed in Australia as September marks the beginning of spring, a season when we are already inclined to change and declutter our lives.
"But with Black Friday and Christmas fast approaching, No Spend September can set you up for revenge spending when the sales hit.
"Instead, people should try evidenced based strategies for sustainable, positive change, including:
- Build identity: rather than say 'I am not spending in September', reframe and say 'I am someone who intentionally spends'.
- Small sustainable changes: focus on one area you would like to cut down on rather than having a blanket no spend rule, for example coffee purchases.
- Commitment devices: use automatic transfers to savings accounts in a banking app rather than just willpower to control spending."
Dr Meg Elkins is Senior Lecturer in Economics at RMIT University, specialising in community wellbeing and dynamic pricing.
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