TikTok is full of tips for building wealth.
The latest popular money-saving trend is the “No Spend Month,” which encourages TikTok users to stop all non-essential purchases for a period of time.
However, even the best intentions can backfire in this case.
Here’s what you should know before taking the vow to stop unnecessary spending.
No spending rules
On the surface, “the no-buy challenge is both practical and symbolic,” said Gregory Stoller, a professor at Boston University’s Questrom School of Business. “Why buy non-essential items that you don’t need?”
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Consumers often track their daily progress and try to accumulate as many consecutive no-spend days as possible.
“Gamification can be a lot of fun,” Ted Rossman, senior industry analyst at Bankrate, recently told CNBC.
The promise of “no money” may be difficult to keep
As with any quick fix, challenges like this can be difficult to sustain over time.
“The underlying complexity of the no-buy challenge lies in the extent to which people are willing to follow through on their commitments,” Storer said.
He added that just as Americans often fail to keep their New Year’s resolutions, it’s easier to break a promise not to buy with just a click of a mouse.
“In most cases, if you have your phone in your pocket, you don’t even have to make an extra effort to open your laptop,” Storer said.
There is also the risk of splurging more on impulse purchases, a phenomenon also known as Revenge spending, or even “doomsday spending.”
Alternatives to not buying commitments
Most financial experts say there are no shortcuts Develop good financial habits.
Rather than following the latest extreme fad, Rothman says, “go back to setting a budget and setting expectations.”
Paul Hoffman, a data analyst at BestBrokers, recently wrote about Harmful FinTok Trendsalso said.
Michael Hershfield, founder and CEO of Accrue Savings, recommends creating a budget that is consistent with your overall financial goals, income, and expenses, and then tracking your spending and budget plans so you can make adjustments as needed.
“By practicing moderation, rather than quitting suddenly, you’ll set yourself up for long-term financial health,” says Hirshfield.
Ultimately, Hirshfield said, consumers should focus on “consuming with purpose, making purchases with a clear purpose and consistent with your personal financial situation and goals” rather than following any buying advice on social media.
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