But in this case, even the best intentions can backfire.
Here’s what you need to know before you cut out unnecessary spending.
A no money challenge can last for a week, a month, or even a year. Some people think of it as a detox or fasting, but it helps you break your spending habits. Money that would have been spent on new clothes or dining out can now be used towards your long-term financial goals.
According to Gregory Stoller, a professor at Boston University’s Questrom School of Business, at first glance, “the No Buy Challenge is both symbolic and practical: Why buy non-essential items that you don’t need in the first place?”
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Consumers track their progress each day and try to rack up as many consecutive waste-free days as possible.
“Gamification can be fun,” Ted Rothman, senior industry analyst at Bankrate, recently told CNBC.
As with any first aid, such a challenge may be difficult to sustain over the long term.
“The question that can arise with a no-buy challenge is to what extent people are willing to follow through on their commitments,” Stoller said.
Just as Americans often fail to keep their New Year’s resolutions, it’s even easier to break a promise not to buy with a simple click, he added.
“And in most cases, if your phone is in your pocket, you don’t even have to take the extra step of opening your laptop,” Stoller said.
Then you risk spending even more on impulse buys, a phenomenon also known as revenge spending or “catastrophic spending.”
Most financial experts say there are no shortcuts to developing good money habits.
Instead of jumping on the latest extreme fad, “it’s important to set a budget and set expectations,” Rothman said.
“No hack teaches you discipline, how to spend wisely or how to keep your balance low,” said Paul Hoffman, data analyst at Best Brokers and author of the recent report. Harmful FinTok trendsHe also said.
Michael Hershfield, founder and CEO of Accrue Savings, recommends creating a budget that aligns with your overall financial goals, income, and expenses, and then tracking your spending and budget plan so you can make adjustments as needed.
“Moderation, rather than abruptly cutting out spending, can help ensure your long-term financial health,” Hirschfield said.
Ultimately, rather than following buying advice on social media, consumers should focus on “being intentional with their spending by making purchases with a clear purpose in mind that aligns with their personal financial situation and goals,” Hirschfield said.