Lane Gillespie, Bankrate.com
If you spend time in Fintok (Tiktok’s Personal Finance Corner), you may have heard of the “No-Buy” month. Whether you are eliminating one spending category or reducing discretionary spending completely, the points of the no-buy challenge remain the same.
Amid today’s economic challenges such as inflation and stagnant wages, when Americans try to rebuild their budgets, people are taking on more variations in the savings challenges and changing their spending habits. These challenges are extensive. Some people are trying to cut some costs or simply spend to free up a room on a budget, while others take a more dramatic route by cutting almost all their spending for a year.
Kelsi Crawford, 35, of Toledo, Ohio, is one such person. Crawford has sworn his spending throughout 2025, with the exception of exchanges of bills (such as rent and utilities), groceries, items needed (such as shampoo), and limited mutual assistance to friends and community members. They will not spend any additional money on discretionary purchases.
Crawford, a freelance artist whose annual income is below the federal poverty line, has reached the target of $3,000 emergency savings fund this year, with his goal of paying business and personal debt of less than $1,000. After looking at last year’s budget, they realized that they couldn’t afford to continue spending on discretionary purchases if they wanted to achieve their goals.
“I caught myself (overexpense), I’m OK, I seem to have to do a hard reset.
A complete reduction in all discretionary spending for a year may guarantee additional savings by December, but for most people it is not realistic. Reducing discretionary spending entirely is a major change, and reducing toys, electronics and activities can be particularly difficult for families with children. That’s why many people who are taking on the No-Buy challenge are adapting it to meet their budget needs. Choose to cut out only expenditure categories that you think are exaggerated, such as eating out, clothing, and beauty.
The non-shopping challenge is popular as many Americans say their savings need to be reset. According to Bankrate’s emergency savings report, almost half of Americans (43%) can borrow money to pay large, unexpected expenses (such as $1,000 for emergency room visits or car repairs). Without that sufficient savings cushion, a small emergency can lead to major consequences, such as not being able to pay your bill. This is a concern for many people as well. About one in three (34%) workers pay their wages, according to Bankrate’s Living Paycheck to Paycheck Survey.
As Americans report low savings and the cost of living continues to grow, the challenges of non-shopping aren’t for everyone, but creative solutions like non-shopping challenges may be needed to maintain the course in today’s economy.
Americans adapt their bi-free challenges to suit their needs
Iris Ayala, a 27-year-old Chicago content creator, has adapted the no-byte trend to achieve her own goals. To reduce messy and unnecessary spending, Ayala has created a long list of items not to buy in 2025, including makeup, athletic clothing, new technology, hair tools, hair care, and reusable water bottles. So far, she estimates she’s saved about $5,000.
“I moved to a new place. Naturally, when you sort out what you don’t need anymore, I looked around and just had a lot of junk,” says Ayala. “That was what really inspired my non-shopping year because I look at all these items that I casually bought.
No-by challenges may save you money, but there is no guarantee that it will break your over-expenditure habit in the long run. Without further action towards a permanent change in mindset, you can easily rely on old habits and the costs of revenge as a year goes on.
But four months later, Ayala feels that the challenge has forever changed the way she approaches spending. Previously, she felt she was buying too many unnecessary items based on online trends or because she actually needed them, but because she saw them being promoted on social media. Thanks to the challenge, before buying anything, she is more careful about whether she will use the entire product and whether she will get value for money.
“I’ve found a lot of benefits that aren’t financial,” Ayala says. “It’s true that my wallet feels a difference. I didn’t realize how much unnecessary spending I was.
Money Tip: If you’re interested in taking the “no-by” challenge, try reducing your discretionary spending for a week per month, or for a month per year. But take your time to research your spending habits and understand why you are spending the same way you are. This way you can avoid “revenge spending” as soon as a no-by occurs.
The economy encourages some people to cut spending
Many Americans now face non-shopping challenges due to macroeconomic concerns. High inflation in 2025, high credit card rates, stagnant wages, stagnant wages, new tariff policies and extensive federal layoffs made it even more attractive to focus on saving on spending.
Peter Cohan, an associate professor of business administration at Babson College, divides the appeal of two categories of no-byte-trends into two categories. Economics and psychology. From an economic standpoint, many Americans are worried about how the state of the economy will affect their finances. According to a Bankrate Economic Indicator Survey, economists say there is a 36% chance that the US will enter a recession by March 2026. Between the potential for future recession and the high prices facing Americans today, some people feel clever or necessary to dramatically pull back spending.
On the other hand, psychologically, when someone can’t control trade policy or inflation, according to Cohan, choosing to pay less may give them a sense of control over their finances.
“From my perspective, there are many more people who have been feeling a huge loss of control in their lives since the beginning of the year,” says Kohan. “One thing they certainly have control over is how they spend the money they have.”
Ayala intends to put the extra money she saved for the emergency savings fund. Currently, she saves about six months of money, but she wants to increase it for at least a few months due to today’s financial uncertainty.
“We feel uncertain about things, and even grocery prices,” Ayala says. “At the moment, everything is in the air at the moment. We have a political and economic landscape right now. By making it (cushion), we can feel a little more comfort and less stress.”
Meanwhile, Crawford is concerned that the Trump administration’s tariffs will affect small businesses. While most of Crawford’s annual income comes from selling art prints, books and products at fan conventions, the papers used are imported from Canada and the acrylic products used are imported from China. If these items are affected by tariffs, they say it could affect supply, cause prices to skyrocket and affect Crawford’s revenue.
“I don’t know how (the Trump administration) will affect me in the future,” Crawford says.
No-Buy 101: How to manage your spending
If you want to do a year of Buys, or if you’re interested in cutting your spending over a certain period of time, these tips can help you get started.
1. Consider whether the right assignment is right for you
No-Buys will definitely save you money, but limiting your overnight spending is a big challenge. If you have a tight budget and are looking for creative ways to save money, then a no-by challenge might be the best. Or, if you are worried about your spending and are looking for ways to change your financial habits, you can buy time to consider the reasons behind your spending and change your mindset. When no-by is over, you can start over with a clean slate.
If you want to free up a little space within your budget, but are not interested in making major lifestyle changes, consider other ways to reduce your basic costs, such as unsubscribe from unused subscriptions, grocery shopping with coupons, or reducing the price of branded-named products.
2. Identify your goals
If you want to save money this year, it may help you set specific savings goals. In doing so, you will focus your efforts on concrete benefits and motivate you to continue.
“Changes are difficult, and it’s hard to say no to certain habits,” said Melinda Opperman, chief foreign officer at Credit.org, a non-profit credit counseling organization.
The general goals she sees in her work are:
Pay back any debts such as $5,000 on your credit card debt and $10,000 on your student loan. Save $30,000 down payment at home. Increases employer’s 401(k) match to $23,500 a year. Save money with a new car worth $15,000.
Opperman also suggests to announce your goals and intentions to publicly save more money, which will help your friends and family stay accountable to you. That extra (positive) peer pressure can be the push you need to overcome the hump and achieve your goals.
3. Avoid temptation
Social media is a great tool to stay connected with friends, family and your favorite online creators, but it’s also a great way to get attacked with ads that encourage you to spend. Keep your phone organized and keep your money minimal by making it difficult to spend online. You can do it:
Delete the app to your favorite store. Unsubscribe from store text and email. Consider the 48-hour rule. After you have added items to your online cart, wait 48 hours before typing “Buy”. This gives you time to decide whether you really want to buy items or make impulsive shopping. Use the settings in the Social Media app to control which accounts appear in your feed. To curate your social media feed, just show those you follow – not the suggested content.
4. Make the most of your savings
Once you start spending less, you need somewhere to put those funds. Consider a high-yield savings account (HYSA) or certificate of deposit (CD). Both can potentially have a higher rate of return on savings than a regular savings account.
HYSA: HYSA is similar to a standard savings account, but you pay a higher yield with money. Often, it’s four times more. HYSA is a great way to make savings accessible and low risk if stored in a FDIC insurance bank. CDS: Unlike the fast access HYSAS, CDS locks funds for a period of time in exchange for a guaranteed annual yield (APY). That apy is often much higher than traditional savings accounts. CD terminology can last from about a month to ten years, but is generally between three months and five years.
Key takeout
The “no-by” challenge, which pledges most discretionary spending, as Americans think at high prices, is popular online. The no-by challenge is designed to help people rethink their spending habits and save more money. To optimize your own No-By Challenge, it is important to identify why you want to complete your tasks, eliminate the temptation of spending, and choose a savings account with a high annual percentage (APY).
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