TikTok's "no-spend" challenge is going viral. Does it work?

TikTok trends come and go, but one that’s rapidly gaining traction is the no-spend challenge. Under the #NoSpendChallenge hashtag on TikTok, everyday users and finance influencers share daily updates and reveal how much they saved by the end of the challenge.

It’s tempting to hop on this trend, especially with so many people glorifying the idea of zero spending. But does the challenge actually work? And is going to such extremes healthy?

Three experts weigh in on whether putting spending on hold is a good idea:

What is the no-spend challenge?

In short, for 30 days straight, the TikTok no-spend challenge requires you to not spend money on anything except the bare necessities, like bills and groceries. This means no online shopping, no trips to Sephora or Target, no brunches with the girls, no late-night McDonald's runs and definitely no lavish trips to the Bahamas. 

Does it actually work? 

Kendall Meade, certified financial planner at SoFi, believes the no-spend challenge could be a solid budgeting method for some people, especially if they’re saving for a short-term goal. But overall, she’s not a big fan. “Sometimes, when people cut their spending completely for a specified time, it can actually cause revenge spending,” she said. 

Tara Minetos, senior wealth planner at U.S. Bank Wealth Management, agrees. “I think the downsides of a no-spend challenge are similar to overly zealous dieting — unless you completely change your mindset and lifestyle, this budgeting method might be too restrictive to create lasting results,” she explained. In other words, when you deprive yourself of too much, you could end up overspending to compensate for the deprivation you experienced.

Lawrence Sprung, certified financial planner, author of Financial Planning Made Personal and founder of Mitlin Financial, also warns that the no-spend challenge could backfire if you’re not careful. “If you don’t use the challenge as a learning experience to change your habit going forward, you may feel like you missed out during these 30 days and go on a spending spree to make up for it once it ends,” he said. “This could end up costing you a lot more than what you would’ve spent during the 30-day challenge.” 

Who can benefit?

These experts might not be completely on board with TikTok's no-spend challenge, but that doesn’t mean it should be written off completely.

Minetos believes the challenge could make sense for people who need a “spending cleanse” or want to challenge themselves to practice financial discipline. 

“What’s also great about this challenge is that it could help you identify the spending cuts that can be made and recognize the luxuries that you’re unwilling to live without,” she said. “An ideal outcome would be walking away from the challenge with a budget that has room for a few luxuries that matter to you while prioritizing and making progress toward your long-term financial goals.” 

Pros and cons

Though many people swear by the no-spend challenge, it’s not right for everyone. Make sure you’re aware of these advantages and disadvantage before committing to a full 30 days of zero spending.

Pros:

• Resets spending habits
• Helps build a financial cushion for unexpected expenses
• Hits pause on unnecessary spending 
• Helps achieve short-term savings goals

Cons: 

• Isn’t a long-term financial plan
• Could cause revenge spending in subsequent months 
• Requires a lot of discipline 
• Being too frugal can ruin your relationship with money 

Do what works for you 

The no-spend challenge is like a crash diet for your finances. It’s popular for a reason, but it’s also easy to become obsessively frugal and let it damage your relationship with money. If you don’t want to go to extremes and risk a binge-purge cycle with your finances, consider making smaller, more sustainable changes. 

For example, rather than going cold turkey and cutting your daily $5 coffees or vowing never to eat out again, try scaling back to one to two times a week. And instead of saying “no” to online shopping altogether, give yourself a dollar limit each month.  

“To have long-lasting changes to your spending habits, you must find a balance that you can sustain in the long term,” Meade said. Think about it, if you’re trying to lose weight and keep the extra pounds off for good, eating nothing but salads for a whole month will most likely not work in the long term since your body can’t keep up with that kind of extreme restriction. The same applies to your finances. 

The verdict

The no-spend challenge can still be a solid way to hit the reset button on your spending habits and help you achieve short-term financial goals. The easiest way to find out if it works is to give it a shot and see how it goes. Plus, you don't have to commit to zero spending for 30 days straight. Try a week, three days, or set just one day a week as your no-spend day — whatever feels more doable. And if it still doesn’t work out, there’s no shame in pivoting to another budgeting method that better fits your lifestyle.