First of all, Merry Christmas! I know it’s Christmas Eve, but thanks to my German heritage, that means I’ll get to open most of my presents this evening :) I’m very excited to give and to get!

In other news, I’m planning a no-spend month. I think it’s important, and post-Christmas will get me the least amount of criticism because everyone else will be dealing with their credit card hangovers and assume I’m in the same boat.

I need a no spend month for a number of reasons. First, I need to see of my emergency fund is actually realistic. Can I really live off less than $900 per month? Secondly, it’s good to break the cycle of how accustomed I’ve become to getting everything I want. Humans are adaptable creatures, and my income jump from undergrad has gone from feeling privileged to commonplace. It’s time I return briefly to extreme frugality, if only to reacquaint myself with just how luxurious it is to be able to say yes to new things. Lastly but not least, it’s just another way to save. With my trip to Iceland coming up, my emergency fund still needing to be topped off, my goal to buy a home demanding more cash, it’s important to me to not spend every dime that’s available. I’ve been entertaining the idea of keeping some of my emergency fund in my checking account, because with 2-3 day transfers from ING, sometimes my money is not as available as it should be — like that time I was shorted $250 and had to do a whack of cancellations of transfers to make sure I didn’t come up “insufficient funds”. I’d like to maintain $1000 in my checking at all times, so I’ll strive to put half that amount, $500, in for January — and the way I’m going to come up with this $500 is by not spending it on stuff!

So, a no-spend January means I will only pay my essentials and then spend nothing else. In other words, I will pay my rent, buy food, and pay my cellphone bill — and that’s it. No new clothes, no iPad data, no iTunes downloads, no dinners out, no new electronics or accessories. Nada. As an added kicker, my grocery budget is limited to $50 a week because, hey, my emergency fund is definitely not big enough to justify pre-made chicken cordon bleu from the grocery store even if it is one of my favorite dinners!

Will it be hard? Well, yes. I know almost none of my friends will get it — but I know the PF blog community will (thank you in advance!). Contrary to popular belief, this is not an exercise in self-torture, it’s just a way to reconnect with my values. Even though I really love money, at the end of the day I know it’s just a tool — it is not the purpose of my life and I do not need it to be happy, spend time with friends, or succeed at my job. I’ve really spoiled myself materially the past few months, and I feel I need to reconnect with some free fun to balance it out.

I’ve prepared myself by stocking up on things that are necessities like prescriptions and contact lenses. I need a hair cut and some new jeans (I ripped two pairs beyond wear this month), but those things can wait until February. Other than that, I can’t foresee any other demands on my income that will try to entice me to spend, but it will be interesting to learn how I cope when those incidences do inevitably pop up. The hardest thing will be saying no to beers after work or friends birthday parties. I did receive some Starbucks gift cards so I can probably meet for coffee, but I’m going to have to decline any other events that would require removing cash from my own pocket.

Wish me luck!