July 1, 2025
Participants vow to spend money only on the essentials and forego discretionary purchases for 31 days.
A new challenge emerged in July and is gaining popularity among Americans. It’s called “No-Buy July” and has become part of the “no-spend” movement on social media. Participants vow to spend money only on the essentials and forego discretionary purchases for 31 days. The rules are subjective. A majority of people are holding back from spending money on new clothes (including secondhand), makeup, haircare, home decor, shoes, and accessories. Some people are even saying goodbye to skincare products to save some money.
As Consumer Affairs reports, the second month of the year is typically when people choose to save money during what has been dubbed “Frugal February.” It’s a time when people pay off holiday bills and stick to their New Year’s resolutions. However, July is the peak of the summer travel season, and parents are beginning to prepare for back-to-school shopping. So, why now?
‘No-Buy’ July Amid Economic Uncertainty
While No-Buy July is catchy, some financial experts argue that it’s a sign that Americans are concerned about the economy. Millions of Americans are in default and struggling to make payments. The Trump administration is planning to garnish the wages of those who are in default on student loans. According to CNBC, the Education Department has recently alerted over 195,000 student loan borrowers in default that their federal benefits will be subject to garnishment in 30 days.
Late credit card payments are on the rise, and an increasing number of Americans are experiencing credit card delinquency.
“The share of people 30 days delinquent on their credit card debt has trended upward since the first half of 2021. That trend was widespread among all four geographies we examined,” researchers from The Federal Reserve Bank of St. Louis report. “The trend is more notable in the lowest-income 10% of ZIP codes than it is in the highest-income 10% of ZIP codes.”
In addition to more debt, the prices at the grocery store continue to rise. People are feeling the financial strains in their pockets and trying to take control back.
But there is some skepticism. Experts caution people against a spending spree in July, as it defeats the purpose of trying to save and pay down debts.
“My instinct is that, like with diet, sustained lifestyle changes are necessary to move one’s financial needle in the long run,” Yale Professor James Choi told The New York Times.
However, Choi adds that it’s unclear if spending will work the same way.
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