To explore the real impact these budgeting behaviours can have on independent businesses, the experts at Capital on Tap spoke with SME owner Judith Oatley, founder of Mai Joie Botanicals, who shares her perspective on how these emerging trends could affect brands like hers. Kamilla Fernandes-Pickett, Marketing and Communications Senior Manager at Capital on Tap, also shares their advice on how small businesses can navigate dips in consumer spending.
‘No Spend January’ and the ‘No Buy Year’ explained:
No Spend January is a budgeting challenge that encourages people to cut out non-essential spending for the month of January. After the high costs of Christmas, participants focus on buying only essentials such as groceries, bills and transport, using the month to reset their finances and build better spending habits.
The trend has gained momentum on social media platforms like TikTok, where users have been sharing their personal rules, progress updates and savings wins. Many compare it to Dry January, but for money, with the goal of reducing impulse purchases and becoming more mindful about where cash is going.
Some are now taking this challenge further by committing to a No Buy Year, where non-essential purchases are avoided for a longer period, while others opt for a low-buy approach that allows limited spending in certain categories.
Common ‘no buy’ rules include:
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Only spending on essentials like food, rent and travel
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Cutting out takeaway coffees and meals
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Banning purchased from categories such as clothes, beauty products and homeware
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Setting a small weekly allowance to keep the challenge realistic
Small business owner Judith Oatley weighs in on the trend, explaining how movements such as No Spend January and the No Buy Year could directly impact independent brands:
Judith says: “As a small business owner selling physical products, I absolutely understand why many consumers are reassessing their this year and becoming more mindful with their money. Conscious budgeting can be a positive thing when it encourages people to spend with intention rather than impulse.
“That said, trends like No Spend January and a No Buy Year can have a real knock-on effect for small businesses, particularly those where sales directly support a sole founder or family. Unlike large retailers, small businesses don’t have the same financial buffers, and even a short pause in consumer spending can significantly impact cash flow, product launches, and long-term planning.
“What I’m seeing so far is a shift rather than a complete stop, customers are buying less, but they’re being more selective. Many are choosing fewer, better-made products and are increasingly mindful of where their money goes. For my business, this has reinforced the importance of clear communication around value, quality, and longevity, rather than pushing volume-led sales.”
Kamilla Fernandes-Pickett, Marketing and Communications Senior Manager at Capital on Tap, offers expert tips for SMEs to weather quieter trading periods and maintain resilience amid dips in consumer spending:
Kamilla says: “Periods like No Spend January and a No Spend Year make careful forecasting and cash flow management really important. Even a short decline in customer spending can impact the day-to-day operations of the company. Therefore, it’s so important for small businesses to monitor their daily cash flow, delay non-essential expenditures, and take advantage of flexible financial tools where needed.
“Options such as short-term credit lines, overdraft facilities, or SME focused business credit cards can help bridge temporary gaps and ensure businesses can continue to operate smoothly during quieter months.
“To reduce the impact of quieter months, businesses can plan product launches and marketing campaigns around peak spending periods, or build in financial flexibility if launches coincide with slower months like January, other strategies include focusing on customer engagement, loyalty programs, and highlighting the value and uniqueness of products through storytelling, sustainability messaging, or showcasing quality, this makes sure that sales don’t rely solely on volume alone.
“Ultimately, trends like No Spend January don’t have to be a setback”, Kamilla concludes. “Businesses that plan ahead of their competitors, manage their cash flow carefully, and connect meaningfully with customers can maintain stability even at a time when spending slows down.”
Photo by Alena Darmel:
