TikTok trends can run the gamut from silly to straight-up bizarre. But given that household debt has only increased over the last 20 years (it reached $17.8 trillion, as of the second quarter of 2024, per data from the Federal Reserve Bank of New York), one recent trend may present a welcome practice for your wallet.
It’s called a no-buy year, and it can reduce impulse spending, increase awareness of your budget and finances, and help you save money. Here’s what you need to know about no-buy years, and how to do them the right way.
What is a no-buy year?
A no-buy year is a trend circulating on TikTok and YouTube where people are avoiding unnecessary purchases for a full year. It’s meant to address excessive and impulse spending. So it can result in saving money along the way, assuming you stick to the plan.
Despite the name, it’s generally understood that there are going to be exceptions here. After all, you do need to spend money on necessities, like rent, utilities, and groceries.
Four tips to have a successful no-buy year
There are a few key steps that you should take to set yourself up for a successful no-buy year.
1. Review your impulse spending habits
Before you start a no-buy year, it’s important to understand what you tend to spend money on, outside of necessities, especially if those tend to be impulse purchases. This way, you’ll have an idea of how much money you can save, which can help drive motivation as you embark on a no-buy year, and what your weaknesses are.
2. Set your own rules
Creating your own personal goals and rules for what you want to get out of a no-buy year is essential, and these should be realistic. For example, you may have entertainment expenses, like a streaming subscription, that you’re not willing to forego for a year. Or you may set a budget for things like birthday gifts. You may also choose to adjust your timeline, instead opting for a no-buy month or quarter, depending on your circumstances.
3. Regularly review your progress
A year is a long time to focus on your spending habits, and it’s likely that you may stray from your own rules from time to time. Reviewing your progress on a regular basis, such as every month, can help you course correct when needed as well as recognize your accomplishments.
4. Have a plan for the money you save
Having a goal to save money by reducing impulse spending is great. But you need to know what you want to do with that cash once you begin a no-buy year, too. This means having a plan for where that cash is going, such as paying off debt. You might also plan to deposit money into a high-yield savings account.
Impulse spending can be a difficult habit to tackle. But with intentional planning, you can change the way that you approach spending and save money in the process.
