Challenge Yourself to a No-Buy Year
Inflation is an economic measure that financial experts use to predict if people are better off than they were in the past. In simple terms, it measures the rise in consumer prices over a specific period for the most common items Americans buy.
The rate of U.S. inflation has been slowing since 2022 when there were major shortages in everything from groceries to cars. The federal government reported recently in September 2024 that yearly inflation was at 2.1%, down from 7% in March 2022. But consumers are still seeing soaring prices on many goods. Yahoo! Finance reported that grocery prices have outpaced inflation in recent years, with the cost of food at home rising 25% from 2020 to 2024.
And they are not expected to fall quickly. That means people will still need to control spending in 2025 to meet basic needs and accomplish other financial goals. The typical answer is to build a budget that aligns your income to spending or ‘money in vs. money out’. But an alternative route that is trending in online circles is the concept of a No-Buy year. This is where you challenge yourself to not buy anything non-essential for a set period. The goal is to spend less and change your long-term habits.
How to plan for a No-Buy Year
Set your goals. Do you want to spend less to save more? Are you hoping to rid your life of unnecessary material things, improve the environment, or do you have a different goal? Your no-buy experience will look different than everyone else's, which can be part of the fun of this exercise.
Set your ground rules You obviously can’t cut all spending, so you’ll need a basic budget to cover approved expenses such as housing, food, utilities, gas, and medical expenses. Then make a list of items that you are willing to cut such as expensive gifts, greeting cards, or luxury hair products.
Finally, list items you are not willing to cut or that might cause you to abandon your challenge such as dining out occasionally or taking a vacation.
Go through your closets
Compare your list of necessities with what you already have and get creative to delay spending. Do you have clothing that is still in style that you haven’t worn in a while? Use all of the soaps and shampoo at home before buying more. Don’t forget about sample and travel-sized products! Talk to family and friends. You might be able to borrow or trade items for the things you need, which means you’ll be helping them out as well.
Do a pilot run
Commit to one month of your no-buy plan before you commit to a full year. This will help you test the waters and determine whether your goals are realistic. Adjust if needed.
Keep a list of everything you buy
Note the date, cost, the reason you bought each item, and whether you broke your no-buy ‘rules.’ Reviewing it every time you get the urge to spend is a good reminder of why you embarked on this journey.
Celebrate your wins
At the end of three months, add up your savings from things you normally would buy, but didn’t. Reward yourself in small ways to keep up your motivation. That could be as simple as a fancy coffee or an ice cream sundae.
Look for the silver lining
In addition to saving money, you might realize some other benefits such as less stress, and more time to do the things you love. That could mean getting healthy, reconnecting with friends or family, or taking up a new hobby. At the end of your no-buy period, you should have more money in your checking account and better spending habits which improves your overall financial health