Woman Shares Eye-Opening Monthly Spending Breakdown After A Year Of 'No Buying'
Could you do it?
Budgeting is a crucial tool for managing personal finances. It allows individuals to gain control over their spending and save for the future.
While many follow standard budgeting advice, some individuals choose more extreme methods to achieve financial stability. One such method is the "no-buy" approach, where spending on non-essential items is eliminated for a set period.
This practice can lead to significant savings and a better understanding of financial priorities. A UK-based PhD student, Mia Westrap, has taken this strategy to the next level by committing to a “no-buy year,” a period during which she limits her spending to only absolute necessities like rent, bills, and food.
Mia, who shares her journey on TikTok under the username @miawestrap, is nearing the end of her 12-month no-buy challenge. She initially took on this challenge after struggling to make ends meet with her income.
Realizing the importance of reining in her spending, she closely monitored where her paycheck went and decided to eliminate all non-essential purchases for a year. Mia receives a paycheck of £2,142.98 each month, from which £1,233.59 is immediately allocated to essential expenses like rent, utility bills, and her phone bill.
This leaves her with £909.39 to manage the rest of her financial priorities, including savings, investments, groceries, and other necessities. Mia’s no-buy year is about cutting spending and carefully managing the money she has left after paying her essential bills.
She has taken small steps toward investing, putting £30 into the S&P 500 index fund through Trading 212. While this might seem like a modest start, Mia believes in taking gradual steps toward investment and building confidence in her financial decisions. Over the year, she has accumulated over £411 in investments.
"It's baby steps for me. I'm still not wholly confident in the idea and prefer the kind of ancient bank where I keep my money, but I am working on it. So now we've got over £411 invested this year, which is amazing," she explained.
Mia is revealing the outcomes of her year without shopping.
TikTokAlongside her investments, Mia has prioritized saving. This month, she earned £11.71 in interest from her savings account and added £488.29 to bring her total savings to £5,500.
Her original goal was to save £4,000 by the end of the year, but she has already surpassed that and now aims to save £7,000 before her no-buy year concludes.
The Financial Benefits of a 'No-Buy' Year
Financial experts emphasize the advantages of implementing a 'no-buy' year as a way to reshape spending habits. Liz Weston, a renowned financial columnist, notes that this approach can lead to significant savings, often revealing unnecessary expenditure.
By focusing on essentials, individuals can reassess their financial priorities and cultivate a more mindful approach to consumption. Moreover, Weston suggests tracking spending before and after the challenge to visualize the positive outcomes.
This method not only enhances financial literacy but also fosters a more intentional lifestyle, which can be immensely rewarding.
Mia is saving more than she anticipated.
TikTok
With nearly £6,000 in savings and £400 in investments, Mia is pleased with her progress. She allocates £391 from her leftover budget each month for groceries and emergencies.
Any unspent money is added to her savings, allowing her to continually build her financial cushion. In addition to her primary income, Mia expects to receive around £330 from TikTok’s creative fund, further boosting her financial stability.
"Payday number 9 of my no-buy year! I can’t believe we’re 3/4 of the way through it already"
Mia’s commitment to her no-buy year has allowed her to achieve remarkable financial results. Her bank account is now significantly healthier than it was at the beginning of the year, and she continues to work towards her savings goal.
Her story exemplifies how a disciplined approach to budgeting and cutting unnecessary expenses can lead to substantial financial progress. By carefully managing her money, investing wisely, and focusing on her long-term goals, Mia has proven that economic stability is within reach, even on a modest income.
Dr. Jonathan Haidt, a well-known social psychologist, explains that the emotional satisfaction from buying can create a cycle of dependency, often leading to buyer's regret. His research indicates that temporary happiness from purchases can diminish quickly, prompting individuals to seek more non-essential items.
Haidt advocates for developing alternative sources of fulfillment, such as engaging in hobbies or building relationships, which can provide long-lasting joy without financial strain. This shift in focus helps cultivate a deeper understanding of personal values and encourages healthier financial behaviors.
In summary, the 'no-buy' approach offers a powerful tool for individuals seeking to improve their financial health and personal satisfaction. By embracing this challenge, one can uncover the true value of their spending habits and redirect focus towards meaningful experiences.
Experts like Farnoosh Torabi emphasize that financial well-being is less about the amount of money earned and more about how one manages it. With commitment and a willingness to adapt, participants can emerge from a 'no-buy' year with not only increased savings but also a clearer sense of purpose in their financial decision-making.
