Should you try a 'no-spend' month?

Amid rising costs and record high levels of consumer debt, the idea of hitting pause on spending, at least for a little while, seems to be gaining traction. Recently, the no-spend month — essentially a month-long period where you don't spend at all, outside of the essentials — has become "the latest money-saving trend taking over" on TikTok, said CNBC.

The challenge is not only a "great way to pause unnecessary spending," but it can also "help you reset your mindset on your spending habits," said Bankrate . But for some, said CNBC , "even the best intentions can backfire."

What are the rules of a no-spend month?

During a no-spend month, you "stop spending money on anything other than what you absolutely need to live," said SoFi .

You obviously "will still need to pay your rent or mortgage , gas, utility bills, insurance, and things like your internet and phone bills," so those expenditures are allowed during a no-spend challenge, said SoFi. You can "purchase essential personal care items, too, such as medications, groceries and cleaning products."

What is banned is anything that falls outside of those categories — though obviously it is up to you to set (and stick to) your own rules. Generally, the types of categories that fall on the no-spend list include meals out, alcohol, clothing, entertainment and impulse purchases. Ideally, said CNBC, you will take the money you would have spent there and put it "toward a long-term financial goal ."

Are there any drawbacks to a no-spend month?

While challenging yourself to avoid spending can motivate some people, it can quickly go south for others. "Just as Americans often fail to uphold their New Year's resolutions, it is even easier to break a no-buy promise with a simple click," Gregory Stoller, a professor at Boston University's Questrom School of Business, said to CNBC.

Further, said CNBC, "there is the risk of splurging even more on impulsive purchases, a phenomenon also known as revenge spending or even 'doom spending.'"

You will therefore want to watch out for "spending more money once your challenge is over," as some may feel tempted to "make up for lost time and end up spending more after their no-spend challenge completion," said Bankrate.

How can you set yourself up for success with spending less?

To make your no-spend month a success, it's smart to get specific about why you are doing it, what your rules are, and how you will resist temptation.

For instance, it is "helpful to have a specific goal," such as "building an emergency fund, or saving for something in particular, an event, maybe, or weekend away," said The Guardian , "rather than setting yourself an impossible target."

Similarly, it is good to plan ahead and make sure your rules are actually realistic. Make note of any pre-planned events or activities coming up so you can decide how you want to spend around them. It also helps to brainstorm alternatives for enjoyment so you don't end up feeling deprived — for example, "you could explore free events in your area, community gardens or online courses," or you might plan to "start do-it-yourself projects to develop new skills," said The Guardian.

Lastly, do not forget to check in with yourself along the way and reflect on what the challenge reveals about your spending. When you start paying more attention to your financial habits, said The Guardian, "you might be surprised how often impulse spending kicks in over just one day, particularly when you're tired, stressed or distracted." You might even recognize that "you have fallen into a routine of buying a particular thing that you can actually live without."