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Why Your No-Spend Challenge Probably Won't Work — And What You Should Do Instead
TikTok's no-spend challenge is when an individual spends nothing except what they consider essential, but experts warn it's not an effective strategy for financial freedom.
While the no-spend challenge is adaptable to a person's needs and wants, it hinges entirely on restrictions, which could cause overspending to compensate once the challenge ends.
We can activate willpower for a time, but in the same way that crash dieting isn't a sustainable long-term health plan, restrictive spending isn't practical for long-term financial stability.
The challenge needs to dig deeper into some underlying reasons behind spending problems, such as shopping addiction, and help change spending habits to prevent future debt.
However, the no-spend challenge can expedite short-term goals, like debt reduction, and open someone's eyes to their budgets if they need to be in the practice of keeping one.
Financial planner Lauren Anastasio says a better path to financial freedom is using the 50/30/20 guide: 50% of your income goes to essentials, 30% to wants, and 20% to savings.