When was the last time you bought something you didn’t need? Before you know it, you can get trapped in a chaotic cycle of consumerism, overspending and general unrest. Here’s a solution to these problems: the no buy year.
Also known as a no spend year, participating in a no buy year is a simple yet effective way to save money, reduce stress and become happier with what you have.
Read on to learn about how to participate in a no buy year.
What is a No Buy Year?
A no buy year is exactly what it sounds like – choosing not to buy items for an entire year. However, when you participate in a no buy year, you won’t cut out purchases completely – you still need to eat, put gas in the car and pay for other essentials! A no buy year means forgoing any purchases not necessary for survival. Expenses you would give up include, but are not limited to:
- Clothing you don’t need
- Cable and streaming subscriptions
- Knick-knacks and decor
- Takeout coffee, tea and food
- Non-essential beauty treatments such as nail care at a salon
Let’s get into the details surrounding the benefits of a no buy year and how to go about participating in the challenge.
The Benefits of a No Buy Year
Save Money
Firstly, the main reason and benefit to participating in a buy nothing challenge: save money! Even small purchases of $5, $10 or $20 can really add up in the long run. When you intentionally cut out expenses for an entire year, it’s a lot easier to save a large chunk of change as opposed to cutting out spending in one category. While participating in a no buy year means short-term sacrifices, the benefits of saving money for this period of time cannot be understated. Just $5 saved per day adds up to $1825 saved over the course of a year!
Eliminate Decision Fatigue
When you go to the mall, do you feel overwhelmed by the sheer amount of choices available to you? There are an overwhelming amount of options out there. Just walk into a fast-fashion retailer and peruse the thirty-odd types of trendy jean cuts that are hip this season and will be out of style the next. When you participate in a no buy year and cut out non-essential spending, you’ll automatically feel at ease. Since you aren’t ‘allowed’ to spend money on things you don’t need, you’ll spend a lot less time in malls. While you’ll still need to go shopping for essential clothing items, food and more, going in, buying what you need and getting out reduces the potential of feeling overwhelmed.
Reduce Conflict With Others
If you’re single and live alone, this may not apply to you. However, if you live with a partner, have kids and/or share finances with your family, a no buy year can help you eliminate the potential for conflict. Finances are one of the top reasons for arguments between couples. When your family isn’t allowed to spend money on things you don’t need, you won’t be arguing with your partner about why you need that third cashmere sweater! While you may still need to negotiate with your kids and explain why they can’t have that toy car set, a no buy year will reduce overall family conflicts.
Help the Environment
Another fantastic reason to do a no buy year: helping our planet out. Cutting out non-essential purchases for an entire year means saying goodbye tons of boxes and plastic. While I won’t get into the politics of how it’s mostly on corporations to take responsibility for the environment (in my opinion), we can all do our part. When you participate in a no buy year, you’ll throw out a lot less plastic. Even some items you think are going to get recycled often end up in the landfill. While a no buy year is just a temporary solution, it’s still a fantastic way to do what you can.
Appreciate the Simple Things in Life
The cycle of consumerism means focusing on what you want, going out and buying stuff, rinsing and repeating. When you’re entangled in a continual cycle of wanting, buying and sometimes regretting your purchases, it can be hard to focus on what you do have – including the simple and free pleasures in life.
Giving up non-essential purchases means you’ll have more time to focus on simple pleasures, many of which are free or are already included in your day-to-day-spending. You can take time to slow down, prepare your cup of coffee and enjoy it on the front porch instead of rushing out the door with it in a to-go cup.
How to Prepare for a No Buy Year
Determine Your ‘Why’
So you’ve decided to make a commitment to a no buy year and learn how how to stop buying things you don’t need – even temporarily. Where do you start? Before starting your big challenge, you need to determine your reasons for undergoing this task and set an achievable savings goal. Why? When you create SMART (specific, measurable, achievable, realistic, time-finite) goals, you’ll be a lot more likely to accomplish them.
A no buy year isn’t for the faint of heart, especially if you’re a big spender. Even one goal can help you stay on track. Create a list of three outcomes you want to achieve from a no buy year.
3 Pillars for Participating in a No Buy Year
- Your reason – for example, reducing stress, strengthening relationships and becoming happier with what you already have.
- A goal you want to save up for – all that cash should be put towards something! Are you going to invest the money, save for a plane ticket to visit loved ones or renovate your kitchen? The possibilities are endless. Choose a goal that aligns with your priorities.
- How much you want to save by participating in a no buy year. Not sure what an achievable figure is? Add up your non-essential purchases over the last 3 months and take the average of this. For example, if you spent $300 in January, $250 in February and $425 in March, the average you spent over the last 3 months is $325 per month. If you want to be safe, round it down to the nearest hundred. In this case, over the course of a no buy year, you’ll aim to save $300 per month, or $3600 in one year.
Write down your goals in a journal or on a piece of paper. Place the journal on your desk as a visual reminder and refer to it at least once a week. Alternatively, post your goals on a piece of paper and affix it in a visible place in your home, such as on your desk or on the fridge.
Like This Article? Pin It!
Make a List of What You Can and Can’t Buy
Along with making goals and writing them down, set yourself up for success with the no buy year by making a list of what you can and cannot buy. Not sure where to start? Here are examples of what should be included on a ‘Buy’ and ‘No Buy’ list.
Buy List
- Groceries
- Clothing that you need for survival – for example, weather and work-appropriate attire.
- Gasoline
- Your rent or mortgage payment
- Insurance payments
- Medications
No Buy List
- Junk food
- Takeout coffee, food and tea
- Alcohol
- Home decor
- Plants
Buy or No Buy List Items
When participating in a no buy year, there are some purchases that can fall into either a ‘buy’ or ‘no buy’ category. A no buy year is primarily about saving money, but you shouldn’t completely deprive yourself. Here are a few categories you should make a conscious decision about whether or not you can spend or not on them:
- Extra-curricular activities such as children’s swimming or piano lessons
- Self-care treatments such as massages
- Gifts for family and friends – this depends on your relationships with friends and family
It’s up to you whether or not you should participate in them. Unlike fun stuff like clothing you don’t need or junk food, these expenses can enhance your life. For some, they may be necessary for health – for example, regular massages. Again, make sure you’ve made a clear decision on whether or not you can purchase an item or not based on its category.
Participating in a No Buy Year
Log Your Spending
Time to stop buying things you don’t need! Start by writing down the first day of your no buy year challenge. While starting in January is a great way to kick off the new year, if it’s June and you’re ready to start, by all means, go ahead! All that matters is that you know which day you start and that you’re committed.
Each time you spend something, keep yourself accountable by writing it down in a journal. Log:
- The date
- What you spent your money on
- If it fell into the ‘Buy’ or ‘No Buy’ category – be honest with yourself!
Find an Accountability Partner
It’s so much easier to go about any challenge with a friend or family member! Got a loved one who is as passionate about frugal living and saving as you are? Commit to a no buy year together. Alternatively, if your friend doesn’t want to participate but is willing to hold you accountable, commit to meeting together regularly. Set aside some time once a week or even once a month to report back on your progress. Chat with your friend about:
- What you spent money on since the last time you saw them
- How much you’ve saved by simply participating in the challenge
- How much you have left to go to reach your goal
- Any temptations you’ve succumbed to – yes, that includes that Twix bar you bought at the store last weekend!
A good accountability partner will encourage you to work towards your goal. When choosing an accountability partner, go for someone who is committed to frugal living and won’t tempt you into spending on something you don’t need. Better yet, if you’re participating in the challenge together, you can choose a reward together after successfully completing the challenge! Treats such as a dinner out or a weekend away are great motivators. Choose a goal that’ll motivate you to successfully complete the challenge.
Drawbacks of a No Buy Year
While the benefits of the no buy year drastically outweigh the cons, there are a few cons to this lifestyle.
Potential Risk of Going on a Spending Binge
When you forgo treats for a long time with a no purchase challenge such as the no spend year, you run the risk of doing a spending binge. It’s the same way that someone who is trying to lose weight can’t completely stop eating food. When you don’t nourish your body, you may want to binge on pizza and chocolate all of a sudden. In the same way, when you deprive yourself of non-essential purchases, you may be tempted to make up for lost time. Before you know it, you’ve spent $300 at the mall in 30 minutes! This is why preparation and mindset is key when participating in a no spend year.
Coming Off As Cheap at Parties and Events
Of course, the year you choose to participate in a no spend year is the year that your cousin, sister and best friend all have weddings. A no buy year is great in theory, but parties and special events can quickly derail the best of plans. Prevent coming off as cheap by committing to budget a certain amount of money towards your ‘Buy List.’ Additionally, set aside some cash reserves for unexpected expenses that may come up such as a last-minute invitation. You can’t always control what things you need to pay for, but you can prepare!
Alternatives to a No Buy Year
Does a no buy year sound unrealistic for you? No worries – here are two alternatives you can try first before committing to an entire year of no spending.
Alternative #1: No Buy Year for One Spending Category
If you spend a lot of money on one specific category, why not do a no buy year for that area of spending? Try eliminating takeout from your budget. Instead, set aside a bit of extra cash to buy some specialty groceries. Prepare your own version of pad se ew or butter chicken at home instead of dropping $30, $50 or more on your weekly takeout haul.
Alternative #2: No Buy Month
Is the prospect of eliminating any expense for an entire year overwhelming? Start with a no buy month challenge. It’s as simple as it sounds – completely cut out spending for thirty days. Log your expenses and progress the exact same way you would with a no buy year. At the end of the no buy month, commit to a longer period of time – say, 3 or 6 months.
Alternative #3: Low Buy Month or Low Buy Year
The low buy month challenge or low buy year challenge means you’ll commit to only spending a certain amount of money on each non-essential purchasing category for one month or the year. For example, your low buy year rules might be to allocate $50 per month to takeout, $50 per month to clothing and $20 per month to subscriptions. A low buy challenge is ideal for those new to budgeting and reducing expenses.
A Final Word on Participating in a No Buy Year
A no buy year is a great way to live frugally, eliminate consumer anxiety and enjoy life’s simple pleasures. Even cutting out expenses in one area of your life can help you live a simpler, happier life. Experiment with different frugal saving strategies, see what works for you and build on it!
Like This Article? Pin It!
Janita is a frugal living expert and owner of Frugal Fun Finance. With over five years of personal experience finding and trying out the best ways to make and save more money, she's eager to share her knowledge. Janita's strategies have helped her save thousands of dollars for funding investments and traveling to over 20 countries.
Janita completed training in personal finance at The University of Western Ontario and McGill University, two prestigious Canadian universities. Her expertise has been shared on GoBankingRates, Yahoo Finance, and NASDAQ.com.
