"No Buy July" is wildly popular on social media. Can you use this trend to save for a down payment?
Some people are making appealing claims about how "No Buy July" could put you on a firmer financial footing. So, this should be of real interest to both first-time buyers and existing homeowners. Because having robust finances can earn you a lower mortgage rate when you next apply for a home loan or other credit.
Not everyone is convinced. "My instinct is that, like with diet, sustained lifestyle changes are necessary to move one’s financial needle in the long run,” said James Choi, a professor of finance at the Yale School of Management, in an interview with The New York Times.
But advocates say No Buy July could easily lead to such long-term changes.
How Does 'No Buy July' Work?
Some people prefer to call "No Buy July" "Low Buy July." After all, you'd likely be in rough shape if you bought literally nothing over an entire month.
No, the idea is that you spend only on things you need to sustain a modern American life: food, personal hygiene products, shelter, taxes, insurance, utilities, gas or transit tickets for commuting ... the bare essentials. Or, as someone put it on Reddit, "no skincare, clothing, or accessories." And there were other no's on that list: no dining out, girls' or boys' nights, coffee or tea or lunches or snacks in or from coffee shops or diners. In other words, only true essentials.
Sounds like hell? Maybe. But it's only for a single month. And at the end of it, you can go back to your old life, probably with hundreds of dollars (maybe more) toward your house down payment savings.
Will it Help in the Long Run?
The idea is that by stripping out your discretionary spending, you'll realize that you don't actually value some of the things you currently assume are worth the money. Perhaps you'll begin packing homemade sandwiches more often for your lunch, bottle your own tap water and chill it, and take a Thermos of coffee to work. Or maybe you'll cut back on premium streaming subscriptions.
But you don't have to do any of those things. Think of No Buy July as an opportunity to reset your spending.
What you do on August 1 is entirely up to you. But if No Buy July exposes aspects of your spending that you value less than you thought, then it's an opportunity to make long-term savings.
And you can use those savings to pay down debts and boost your credit score, both of which should earn you a lower mortgage rate when you next need a mortgage.
A Savings Scenario
Let's say you find $300 per month in optional spending that you can cut out permanently. You enjoy eradicating unnecessary bills so much that you up that to $500 per month after six months. After a year, you have $4,800 toward your house down payment.
| Month | Savings |
|---|---|
| Jul 2025 | $300 |
| Aug 2025 | $300 |
| Sep 2025 | $300 |
| Oct 2025 | $300 |
| Nov 2025 | $300 |
| Dec 2025 | $300 |
| Jan 2026 | $500 |
| Feb 2026 | $500 |
| Mar 2026 | $500 |
| Apr 2026 | $500 |
| May 2026 | $500 |
| Jun 2026 | $500 |
| Total | $4,800 |
Any Month Is a Good Month to Start
Advocates acknowledge that it's only called No Buy July because of the catchy rhyme. And critics say choosing a summer month might be tricky, especially if vacations are already scheduled.
So, you don't have to schedule your financial detox for any particular month; any 30-day period will do. If you're sold on the idea of giving this a try, pick a time that suits you. You can even cheat and choose next February with its 28 days.
No Buy July might be a gimmick. But it's one that just might get you closer to homeownership. Why not try it?
