What You Need to Know Before you Take on the ‘No Buy by 2025 Challenge’
Some people have pledged to try “No-Buy 2025” in an effort to combat the rampant consumerism and credit card debt that has plagued so many Americans in recent years. Some people pledged to “No-Buy” 2025 in an attempt to combat rampant consumerism, which has plagued many Americans over the past few years. No-Buy 2020, or Low-Buy as some call it, is a plan to help you take charge of your finances by not making unnecessary purchases. This means cutting back on “fun” purchases like clothing, restaurant meals and home decor as well as streaming subscriptions. These challenges can be quite difficult. The effort could backfire.
“For some people, it may feel restrictive, particularly if they are used to making small ‘treat-yourself’ purchases,” says Bernadette Joy Cruz Malion, author of “Crush Your money Goals”. If it feels too intense it can lead to burnout and even a splurge. Adopt a values based spending mindset.
“Values-based spending considers your personal values, goals, and priorities, and allows you to realign your financial priorities, whatever that looks like for you,” Howard said. How do I define them? It’s easier to make decisions that align with financial goals when you know what your values are. How do I define them?’ It’s easier to make decisions that align with financial goals when it’s clear what your values are.”
“It’s not about punishing yourself — it’s about making intentional choices with your money.”
– Bernadette Joy Cruz Maulion, author of “Crush Your Money Goals”
Eliminate the pressure to spend money on things you don’t actually value by considering whether purchases you’re making are adding real worth to your life. You can either reallocate the money to utilities, or save it for a future purchase that will have a greater impact. Howard says that this opens up the possibility of identifying purchases and experiences which bring true joy. Find an accountability buddy. Andrea Woroch, a consumer finance expert and budgeting specialist, advised
: “Find someone to help you.” “Buddy systems are great for keeping each other accountable.”
You can even tap into an online community if you’re having trouble finding someone with similar goals IRL. The commitment doesn’t need to be huge. It can be really helpful to compare notes and to motivate each other by sharing your struggles and your wins. “It can be really helpful to compare notes and to motivate each other by sharing your struggles and your wins.”
Establish why you want to do a no-spend or low-spend goal.
“Get clear on your why: Why are you doing this?” Rebell advised.
Asking yourself why you want to put aside money can help you be purposeful with the money you save, rather than just wasting it on a spending binge after the saving period is over. You might want to pay down some debt or go on vacation. Woroch said, “Identify and visualize the goal that your no-spend challenges will help you achieve.” This will help you stick to your goals. You can track your savings in a spreadsheet, or use an app such as Rocket Money to see your progress. This will help you to feel motivated to save throughout the month. Out of sight, you’re out of mind.
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Instead of buying more clothes, have fun “shopping” your closet, rediscovering old pieces and putting together new outfit combos. Make it fun. There are many ways to make the process fun. Cruz Maulion, a millennial who is older than most of us, said: “I love stickers, trackers and colored crayons.” “I like to track it on a physical calendar on my wall so I can visually give myself a pat on the back — and use up all those stickers I’ve accumulated over the years!”
Replace areas where you used to spend money with alternative activities like reading books from the library, dusting off that old guitar you haven’t played in years, taking free yoga classes on YouTube or going on hikes in your area.
Another fun way to spend less or not at all is to shop your closet for new outfits. If you haven’t touched them in a long time, some items may even seem brand new. This is also a great time to organize and clean your closet and other parts of your home. “Take inventory of the things you have already in your house,” Rebell suggested. “You may realize you have things you might have bought as necessities.”
Those random liqueurs you’ve had in your liquor cabinet forever? You can now experiment and create fun cocktails without spending money. You can do the same with random ingredients you have in your pantry. The ability to prepare better meals at home will make dining in less of a punishment or step down from eating out so often. “By learning how to prepare better meals at home, dining in will feel less like a punishment or step down from going out to eat so often.”
Consider a ‘mindful’-buy 2025.
Rather than fully cutting your discretionary spending overnight, try to be a little flexible and think of it as “mindful”-buy 2025, rather than no-buy 2025. Rebell says to set realistic goals, and not be afraid of course-correcting. “Just like a diet, it is better to ease up a bit and lose a little weight, than to just start bingeing if you fall off the wagon with a little cheat in a moment of weakness.”
“Practice money mindfulness before you buy, where you pause and observe your thoughts, actions and emotions when shopping.”
– Jack Howard, head of money wellness at Ally Financial
Ultimately, the challenge has to fit your life in order to work. Don’t beat yourself up for imperfection.
“Go in with a clear goal, and be kind to yourself if you want a little wiggle room,” Cruz Maulion said. It’s not about punishing oneself — it’s making deliberate choices with your money. Howard asked: “Is it social pressure or FOMO that is driving you to purchase the designer item or concert tickets you may not be able afford?” “Practice money mindfulness before you buy, where you pause and observe your thoughts, actions and emotions when shopping.”
Customize the challenge with specifics.
“Customize the challenge to fit you and what you want to accomplish. Cruz Maulion says that you don’t need to be all-or nothing. The ‘rules,’ however, can be anything that works for you. Others limit their spending to a few categories like eating out or shopping online.
Maybe your goal is to cut out eating out or buying clothing, or you may be pledging only to use public transportation or walk. Even small things add up. Cruz Maulion explained that if, for example, you promised to save $10 per day, you would have an additional $300 by the end a month. Whatever it is, it should be a goal you can achieve without having to spend too much money at the end. You can reward yourself with a small treat that fits within your budget. Talk to your loved ones.
You can involve your loved ones in your journey through other means than accountability buddies. Conversations with family and friends are free. Howard suggested that you use this time to discuss your finances with family and friends. She said that this method also fits in with values-based spending.
“Quality time with loved ones is often a top value, so creating a spending plan with that in mind helps lead to making more memories that align with your goals and your budget!” she noted.
Letting your loved ones know about your financial goals can also make it easier to avoid spending temptations. Woroch suggests that if you know that your friends enjoy planning expensive meals, you could suggest a potluck instead.
Woroch said you could actually freeze your credit card in a block of ice, although you don’t have to take such an extreme measure.
Eliminate your triggers.
“Identify and eliminate spending triggers,” Woroch advised. “This could look like deleting shopping apps on your phone, unsubscribing from retail newsletters, and avoiding walking into stores where there are sure to be plenty of spending temptations.”
She recommended making spending harder by deleting the credit card info you have stored in online retail accounts and on your mobile devices. Woroch said that “extreme measures” could include freezing your credit card into a block. You can lock your card online to avoid a wet mess. You can also avoid temptations by curating your online feeds. Take advantage of free money.
Take advantage of free money.
Even as you cut down on your discretionary purchases, you still need to spend on essentials, so why not earn money on those transactions?
“Tapping into free rewards can help you stick to your no-spend challenge,” Woroch noted. Download the Fetch Shop extension for your browser and start earning points on online purchases. These can then be redeemed as gift cards for Amazon, Target Starbucks, Sephora and other retailers. These earnings can be used to purchase essentials in the future or for a free treat. The next four years are going to change America forever. But HuffPost won’t back down when it comes to providing free and impartial journalism.
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“More importantly, do whatever you can to maximize your no-spend efforts and put those savings in a high-yield saving account like Bread Savings, which offers a 4.75% annual percentage yield so your savings can make some extra cash for your goals,” Woroch said. Don’t miss the opportunity to earn free money. You’re getting only 0.46% averagely from traditional savings accounts.
