Can a no-buy challenge help you achieve financial freedom?

If you’ve scrolled through TikTok lately, you’ve probably stumbled across videos of people proudly announcing their “no-buy year.” They swear off buying anything beyond essentials for months, even years, all in the name of saving money and reaching financial freedom faster. When you’re navigating a high cost of living, the idea sounds tempting, but is it realistic here?

What “no-buy” means

More than “spending less”, no-buy is a self-imposed spending freeze on all non-essential purchases for a set period of time. Essentials include rent, utilities, groceries, transport, and necessary medical expenses. Everything else like clothes, gadgets, beauty products, takeout coffee, is off-limits unless something truly needs replacing.

The goal isn’t just to save money, but to reset your relationship with spending, cut out impulse buys, and learn to appreciate what you already own. Think of it as decluttering your financial habits.

We spoke to Chua Wei Xuan, Senior Branch Director of finexis advisory, and here’s what he thinks about no-buy: “It is a bold challenge that is able to help cut down expenses that many have, and people who are able to do it within 30 days to reset their habits will definitely be able to build better and healthier spending habits moving forward. It is also able to help millennials and Gen Z to be able to discover joy in today’s world in activities like reading, hiking and activities that don’t require much spending as compared to activities that require spending. The key is that it’s not about deprivation for its own sake, it’s about rediscovering value in what you already have.”

No-buy vs low-buy

While a no-buy is the extreme version, a low-buy is a gentler alternative. You still buy non-essentials, but with clear rules, such as limiting clothes purchases to $100 a month, or only buy one bubble tea every week.

On the plus side, no-buy helps you save money quickly, curb impulse spending, and get creative with what you already own. But it can also feel restrictive, unsustainable, and may even backfire with binge spending once it ends. Not to mention making socialising in Singapore, where dining out is a big part of life, more difficult.

A low-buy approach, on the other hand, offers more balance. It’s flexible, easier to maintain over the long run, and still lets you enjoy small pleasures without the guilt.

What it takes to achieve financial freedom

Whether you’re going no-buy, low-buy or otherwise, the path to financial freedom usually includes:

Track your spending religiously. Use budgeting apps to see where your money really goes.

Build an emergency fund. Aim for at least three to six months of living expenses in a high-interest savings account.

Pay off high-interest debt. Credit card bills and personal loans can eat into your savings faster than you think.

Invest early and consistently. Investment platforms like Syfe, StashAway and Tiger Brokers make it easier for beginners to start.

Increase your income. Side hustles, freelance gigs, or upskilling can shorten your road to financial freedom.

No-buy and low-buy can help with Step 1 (spending awareness), Step 2 (savings boost) and potentially, Step 3 (extra funds to clear debts), but they aren’t magic bullets. Investing and income growth matter too.

Wei Xuan highlighted an important point: “[No-buy] will be able to help in achieving financial freedom if the money saved is repurposed into different instruments that will be able to compound, depending on what kind of financial freedom we are looking at, ranging from Lean Fire, Fat Fire, Barista Fire and Coast Fire. Without reinvesting the savings, the challenge becomes more of a lifestyle detox than a wealth-building tool. When done consistently, no-buy challenge can accelerate debt payoff, grow emergency funds, and boost investment portfolios.”

In essence, true financial freedom goes beyond just cutting expenses. Your money needs to work for you. Savings alone can’t outpace inflation, but investing allows your wealth to grow steadily over time. At the same time, increasing your earning power accelerates your journey far more than penny-pinching ever could. To quote the world’s richest man, Elon Musk once said, “Making an extra $10k is easier than trying to save $10k.”

Is no-buy practical in Singapore?

For short bursts, yes. A one- or three-month no-buy can be a great way to reset your spending habits, especially if you’re saving for a specific goal like a grad trip or laptop upgrade. But as a permanent lifestyle in Singapore’s fast-paced, hyper-social environment, it’s tough.

If you’re thinking of trying no-buy, take this piece of advice from Wei Xuan: “Lower shopping-site screen time bit by bit to avoid rebound splurges. Replacing habits and not just removing the habits. To be able to swap out high-cost habits with fulfilling low-cost or no-cost alternatives so it feels like a lifestyle shift, not a punishment. In a hyper-social media environment, seeing friends’ spending or experiences may cause the fear of missing out. [You may need to] plan for coping mechanisms in advance.”

But all in all, low-buy might be the sweet spot as it gives you financial discipline without feeling like you’re missing out on every cafe catch-up or friend’s birthday gift. Pair that with tracking expenses, building an emergency fund, clearing your debts, investing early, and increasing your earning power, and you’re more likely to reach financial freedom without burning out.