The 'No Buy' trend is catching on — and leading to big savings

Yahoo

5 days ago

Sometimes, getting your budget on track starts with a detox to wipe the slate clean and build new habits. Many consumers have taken on no-spend challenges to put themselves to the test and see if they can go a day, week, or month without spending money.
Others have taken it a step further and adopted a 'no buy' year to cut out unnecessary spending and focus on what matters. Here's what you need to know about No Buy 2025 and how to incorporate it into your life.
What is No Buy 2025?
No Buy 2025 is a personal finance trend in which individuals commit to avoiding non-essential (AKA discretionary) purchases for a set period this year, which could range from a few weeks to the full year.
One example of this trend in practice is 'No Buy July,' where participants challenge themselves to avoid spending money for the full month.
'No Buy July is like a financial detox,' said Hanna Kaufman, CFP® at Betterment. 'For one month, you hit pause on all non-essential spending — think: takeout, impulse Amazon buys, new clothes — and focus only on what you really need.' She explained that it's a challenge that helps people reset their spending habits, get clarity on their financial priorities, and boost their savings without having to make huge sacrifices.
But some people are taking it a step further and adopting the trend for the entirety of 2025. For example, a Reddit group dedicated to the no-buy challenge boasts more than 70,000 members who share their personal experiences and tips.
Many of those who take on the challenge start by creating a list of rules for themselves that align with their lifestyles. This could include hard rules such as 'no new clothes whatsoever' or 'no new technology,' as well as rules that limit the frequency of certain purchases, such as 'yes to takeout once per month' or 'yes to one nail appointment every two weeks.'
Others have posted online about having a 'low buy' year, which means they're limiting the amount of purchases they're making, rather than cutting out non-essential spending altogether.
The ultimate goal: Spend less and save more in order to reach larger financial goals, from paying off debt to buying a home.
Read more: How the 30-day savings rule can help you stop impulse spending and save more money
Why it works
You may wonder why creating a simple budget isn't enough. While it certainly can be for many, some people need the extra motivation that comes from a challenge.
'Challenges work because they give you structure with a finish line,' Kaufman said. 'You're not saying 'no' forever, just 'not now.''
Kaufman added that joining a no-buy challenge also helps you break longstanding habits, like reaching for your phone to shop when you're bored, because you have the time to ask yourself whether you truly need or want an item. 'Plus, there's a little psychology at play — our brains love a good goal, especially when there's a sense of community and accountability behind it,' she said.
Read more: 5 psychological money hacks to cut spending and increase savings
There's also the added bonus of having built-in accountability partners, be it through close friends, family, or global online communities that are all working toward the same goal and experiencing similar pain points and victories.
If your budget has been off track and you're struggling to get your spending under control, embarking on a no-buy challenge can be a good way to reset and remind yourself of what's important.
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How to participate in No Buy 2025
If you're thinking of getting on board and joining in on No Buy 2025, there are a few steps you can take to set yourself up for success.
Create your no-buy rules
The spending parameters you set should be unique to your situation. After all, no one knows your spending habits and pitfalls better than you.
What are your nonnegotiables? What can you afford to cut out? Be honest with yourself about what you absolutely need, versus what is simply nice to have.
It's also important to be flexible. For example, cutting out all non-essential purchases completely may be demotivating after a while, whereas limiting your 'fun' purchases to once per week or month will make you feel less deprived and motivated to stick to your plan.
Set a savings goal
Having an end goal in mind can make it easier to stick to the challenge. Imagine what you hope to accomplish. Perhaps your goal is to pay off your car loan, save for a down payment on a home, or set aside enough money to start a business. Knowing your 'why' can help you avoid veering off track when things get difficult.
Find free joy
Just because you're avoiding spending money doesn't mean you have to deprive yourself of the things that bring you joy. 'Replace shopping habits with low-cost (or no-cost) fun: picnics, hikes, library runs, or finally watching that streaming series you've ignored,' Kaufman suggested.
Keep track of your progress
Watching your savings increase over time can be a constant reminder that your no-buy challenge isn't limiting you; it's helping you get closer to reaching your financial goals. Consider using a budgeting app or spreadsheet to track your progress over time, and whenever you're feeling deflated, you can remind yourself how far you've come.
Forgive the slip-ups
You're aiming for progress, not perfection. If you have a moment of weakness and end up splurging, use it as an opportunity to learn. Then get back on track. 'If you cave and buy a latte or a concert ticket, don't quit the challenge,' Kaufman said. 'Reflect, reset, and keep going.'