No-Buy Month: What does it mean?

It isn’t a secret that in the modern world, companies are constantly marketing to us. Advertisements are there to draw us in, and make sure we decide their product is the next item we purchase.

Because everyday costs have increased, some people are paying closer attention to how they spend their money, and looking for ways to cut back on unnecessary spending.

What is a No-Buy Month?

A no buy month is exactly what it says on the tin. For a whole calendar month you can only spend money on necessities, including but not limited to:

• Rent or Mortgage payments

• Household Bills

• Grocery shopping

• Travel costs

• Existing debt repayments

• Healthcare

It doesn’t mean spending no money at all, but aims to curb non-essential spending.

What are the benefits?

People do no buy months for a variety of reasons. A no buy month can free up extra money you may usually spend out of habit, which can be put towards personal financial goals such as saving for a future purchase, building an emergency fund or increasing your savings.

A no buy month not only means you have extra money available, but it can promote more mindful choices around how we spend our money.

MoneyHelper highlights the benefits of understanding your spending habits and creating a realistic budget, both of which can be supported by taking part in a no buy month.

What counts as a non-essential purchase? 

A non-essential purchase can be categorised as a want and not a need, such as luxury items, takeaways and nights out. If during your no-buy month you need to replace an item such as an appliance then of course this is allowed. A no buy month doesn’t mean that you cannot spend money in a genuine emergency.

Helpful tips during your no buy month 

A no buy month can be difficult to master, and you don’t have to be perfect on your first try, but there are some steps you can implement to make it a little easier.

Step back and think before purchasing:

Many retailers use promotions and marketing techniques designed to encourage additional purchases. So it isn’t a surprise that usually you go in for a new pair of work shoes and end up with 3 tops and a new pair of earrings. Before buying something, take a moment to think about whether you really need it. It may seem strange at first but giving yourself an opportunity to reflect on the purchase before you’ve made it can help put into perspective if this is a want or a need.

Give yourself a small budget for ‘fun’ spending:

Sometimes having a little wiggle room for the occasional treat keeps our motivation high, so budgeting some money aside to put towards an occasional treat, especially if you are trying a no buy month for the first time, could be worthwhile if the thought of going cold turkey is daunting.

Be tactical with the timing:

Scheduling a no buy month at an already busy time of the year may prove challenging, for example it’s probably not ideal to schedule one for the summer holidays if you have children.

Everyone will have months during the year which are naturally lower spend for them and could offer a good opportunity to give no buy a try!

• January – Christmas has passed, you’re stocked up on toiletries for the next year and the weather is miserable. Depending on when family birthdays fall, you could try your first no buy month as we go into the New Year.

• May – With the weather starting to heat up but the kids still at school, May could be a great time to try a no buy month. Saving a little extra before the summer holidays may help cover holiday spending.

• November – November could be a good month to try a no buy month. With Christmas just round the corner, having some extra money for presents and festivities can mean you don’t have to break the bank going into the festive season.

A no buy month doesn't have to mean eliminating all spending. Instead, it's about becoming more conscious of where your money goes and making sure your spending aligns with your financial goals. Whether you're saving for a special occasion, building an emergency fund or working towards financial goals, a no buy month could help you become more aware of your spending habits.

If you’re interested in taking part in a no buy month, check out our Budget Planner help identify your essential and non-essential spending and understand how your money is currently being spent.