The Biggest Reason ‘No-Buy Months’ Work for Some People — and Fail for Others
KEY TAKEAWAYS:
"No-buy" challenges have become popular in recent years as a way to curb discretionary spending
Like dieting plans, they often fizzle out as excitement and willpower drains
One way to succeed is to cut spending on stuff that brings you little joy -- not stuff you actually love
How familiar are you with no-buy challenges? These trendy challenges are a popular way to rein in spending, yet the people who stick with them and the people who quit by midweek often seem to be playing different games.
We spoke to Michael Schramm, chartered financial analyst (CFA) and founder at Emotional Finance, to break down why these challenges work for some people but flounder with others and how you can turn it around to work in your favor.
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What a No-Buy Challenge Involves
A no-buy challenge asks you to stop purchasing one or more discretionary items for a set period, such as a week, two weeks, or a month. Common targets include daily coffee, clothing, takeout and fast food. Some people stretch even the idea to a full year.
The appeal is usually financial. Discretionary spending adds up quietly, and a challenge makes it visible. A $7 daily latte costs you nearly $50 in a week, so even a short challenge can free up money for debt payments, savings, a retirement contribution or a fund for a specific goal.
However, the no-buy challenge is still just that: a challenge. Some people may feel as though a week without buying coffee flew by (especially once they dusted off their existing coffee machine and started brewing cups from home) and may consider extending the challenge to another week. To others, the last day of the challenge can’t arrive fast enough.
Why does it feel like some have an easier time of it than others?
Why Do No-Buy Challenges Fail?
No-buy challenges have a lot in common with dieting. As Schramm explained, both run on willpower which usually runs out.
You might be able to restrict yourself from buying a daily latte for a week, or two weeks, but eventually you’ll hit a wall. When this happens, you’ll find yourself going back to this old habit which Schramm said erases your short-term progress. The $49 saved from a week without lattes defaults back to $196 spent on these daily coffee runs in a month.
According to Schramm, the act of restricting yourself from making this daily purchase psychologically tells your mind you’re now in scarcity mode. When you’re experiencing scarcity, the vital resource feels too tight and the mind fixates on how to survive.
He said that over time, the mind will start to eat away on mental bandwidth. This leads to willpower slowly fading out and giving up, even as soon as a few days into a no-spend challenge.
And if you’re not accustomed to doing without the item you’re choosing not to buy, going a week (or two) without can feel more like a punishment than anything else.
The Best Way To Win at a No-Buy Challenge
If the idea of giving up coffee, even for a week, sounds dreadful or impossible even, this doesn’t have to be the first thing you challenge yourself to cut back.
Instead of sacrificing expenses you enjoy, Schramm recommended cutting out the spending you don’t love. Look into your existing subscriptions and unsubscribe from a streaming service you rarely use or turn off any auto-renewals you can easily go without.
He said, “[This way] you can save money without thinking.”
Nothing gets taken away from your life, so there’s no scarcity to manage and no willpower to burn. The best no-buy challenge, then, may be the one that costs you the least to give up. Start there, let the savings stack up quietly and save the coffee showdown for when you’re feeling confident.
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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