New money-saving TikTok trend, called “No-Spend Month”, might not be as effective as you think!
TikTok is full of wealth-building tips, and one of the latest trends is the “no-spend month”. This challenge encourages users to avoid all non-essential purchases for a set period. However, even with good intentions, this trend can have drawbacks.
The “no-spend” challenge can last from a week to a year. The idea is to attempt breaking the habit of overspending, so you can save money for your long-term financial goals instead of spending it on non-essentials, like clothes or dining out.
However, according to Gregory Stoller, a professor at Boston University’s Questrom School of Business, “the no-buy challenge is as much pragmatic as it is symbolic”. “Why purchase non-essential products that you don’t need to begin with?”, he asked. Participants often track their progress, aiming for as many consecutive no-spend days as possible.
The Challenge of Sticking to No-Spend Pledges
“The potential complication with the no-buy challenge is to what extent people are willing to honor their commitment. Just as Americans often fail to uphold their New Year’s resolutions, it’s even easier to break a no-buy promise with a simple click. And in most cases, you don’t even need to make the extra effort of opening a laptop if your phone is in your pocket. And then there is the risk of splurging even more on impulsive purchases, a phenomenon also known as revenge spending or even doom spending”, Stoller said.
What to Do Instead
Financial experts generally recommend consistent good money habits over extreme measures. Ted Rossman, senior industry analyst at Bankrate, suggests that “it comes back to setting a budget and setting expectations”. Paul Hoffman, a data analyst at BestBrokers, emphasizes that “no hack can teach you self-control, mindful spending or how to keep your balance low”.
Michael Hershfield, founder and CEO of Accrue Savings, advises creating a budget aligned with your financial goals and monitoring your spending to make necessary adjustments. Moderation is key. By not going to extremes, you can achieve long-term financial health, he added. He also suggests focusing on intentional spending – making purchases that align with your financial goals – rather than following social media trends.