UAE money: Does the new TikTok ‘no-spend’ challenge truly work? Dubai finance experts weigh in

While the trend is gaining traction among those looking to curb impulse purchases, reassess their financial habits, and boost savings–is it a wise way to save?

And, what is termed as “unnecessary” expenses? Here is what experts told Arabian Business.

TikTok’s new ‘no-spend’ challenge explained

“The no-spend challenge is a personal finance game where you commit to avoiding all non-essential spending for a set period of time. This could be a week, a month, or some do it for even longer,” Carol Glynn, a Dubai-based financial expert said, adding that the goal usually is to save as much money as possible in a short period of time.

“However, this is not a long-term financial solution,” Mike Coady, another Dubai-based financial expert said calling it “a fad diet for your wallet.”

“It might help in the short term, but lasting financial security comes from structured financial planning, not just restricting spending for a few weeks,” he said.

What are considered ‘essential’ in terms of spending?

According to Coady, essentials are subjective and varies from person to person. However, for expats in the UAE, spending priorities include:

• Housing (rent, utilities, service charges)
• Transport (car loans, petrol, Salik fees)
• Groceries (not restaurant dining)
• School fees (for families with children)
• Healthcare (insurance, medical expenses)

Echoing the sentiment, Glynn explained that debt repayments can also be classified as essentials. “Anything outside of these, such as dining out, taxis, takeaway/delivery meals, shopping for unnecessary or non-essential items, travel, personal grooming, subscriptions or entertainment are usually considered non-essential,” she said.

Other non-essential expenses, according to Coady, includes daily coffees and brunches as well. “However, cultural context matters, in places like the UAE, where networking is key, some may argue that dining out for business or social connections is an essential expense,” he said.

Benefits of the ‘no-spend’ TikTok challenge

“Yes, but only if used correctly,” Coady said, detailing the main benefits:

• Self-awareness – It forces people to see where their money actually goes. Many are surprised by how much they spend on impulse buys or lifestyle inflation.
• Breaks bad habits – It helps curb emotional spending, especially in a consumer-driven society like Dubai, where luxury and lifestyle temptations are everywhere.
• Short-term financial boost – People can use it to pay down a small debt or build an emergency fund quickly.

Glynn explained that those practising the ‘no-spend’ challenge must also approach it with the “right mindset,” adding that while it creates awareness, it also uncovers spending triggers such as “emotional spending, boredom, or social pressure, and help you regain a sense of financial control.”

“It motivates participants to get creative, as people seek out free or low-cost ways to enjoy themselves, many of which can become sustainable habits that continue to support financial well-being beyond the challenge,” she said.

Another benefit, according to Glynn, about the challenge is the creation of “financial breathing room.”

“If an individual faces an immediate need for cash but hasn’t built up savings, a no-spend challenge can create financial breathing room. By temporarily cutting non-essential spending, they can quickly gather funds toward urgent necessary expenses, reducing the need for borrowing or financial stress and giving them back a sense of control,” she explained, adding that a no-spend challenge is most effective when combined with “a solid personalised financial plan that includes having motivating goals, budgeting, investing and mindful spending.”

Should you treat yourself when you get your salary?

“I would say the first priority when you receive your salary should be to pay your future self,” Glynn advised, adding that this means automatically transferring money into an “interest-bearing savings account, paying your debt obligations, contributing to your emergency fund or investing for long-term growth before you spend on anything else.”

Glynn explained while many people fall into a “payday spending cycle” of impulsively spending as soon their salary is credited, it often leads to a struggle later in the month.

“Instead, create a monthly plan that balances both financial responsibility and enjoyment. Having a ‘fun money’ budget is important. Set aside an amount specifically for guilt-free spending. When you know your debt, savings and investment goals are already covered, you can enjoy spending this money without stress, worry or regret. Doing it in this order makes treating yourself even more enjoyable,” she said.

On the other hand, Coady explained that practicing the 50/30/20 savings rule is a healthy way of money management. The rule divides a person’s monthly salary into 50 per cent for needs (rent, utilities, and groceries), 30 per cent for wants (entertainment, shopping, and leisure) and 20 per cent for savings and investments.

“Expats in Dubai, Abu Dhabi, and Doha often fall into the high-income trap, where salary increases lead to lifestyle inflation (more dining out, expensive cars, and luxury purchases). Instead of saving windfalls, people upgrade their lifestyle, and then it becomes their ‘normal.’ A good rule of thumb: Every time you get a salary increase, increase your savings before increasing your lifestyle,” he said.

Don’t let your money sit, save it wisely

According to Coady, instead of just leaving it in a low-interest bank account, people should:

• Start an emergency fund – 3-6 months of living expenses in an accessible account.
• Invest in long-term savings – Expatriates in the UAE don’t have government-backed pensions, so they must build their own retirement security.
• Pay off high-interest debt – Especially credit card debt, which can be 35-40% APR in the UAE.
• Diversify investments – Real estate, equity portfolios, and international pensions.
• Without a plan, most people just spend their ‘saved’ money later, so it’s crucial to lock it into a structured system.

But, the best way to save “starts with understanding your current financial habits,” explained Glynn.

“Before making changes, identify any gaps or financial “leaks” such as unnecessary expenses that you can easily cut without impacting your quality of life. Once you have financial clarity, create a realistic and sustainable budget that supports your savings goals while allowing for flexibility. Saving should feel manageable, not restrictive. From there, consistency is key,” she said, adding that “automating your savings so you’re prioritising them before spending, regularly reviewing your budget to ensure it aligns with your lifestyle and goals, as well as with your values,” are some ways to monitoring your financial habits.

Glynn also said those trying the ‘no-spend’ should feel empowered, rather than punished. “Use it to focus on learning and making intentional choices with money, not deprivation. The key is to find a balance afterwards by spending on what truly adds value to your life while also prioritising financial stability and future financial security,” she said.

Meanwhile, Coady advised that the ‘no-spend’ challenge is not effective on its own, but is a “great wake-up call.” However, he said, real savings come from structured financial planning.

“The goal isn’t to just ‘spend less’—it’s to ‘build more’. Instead of just cutting expenses, people should be asking: How can I make my money work harder for me? How can I use my tax-free income in the UAE to create financial security? What’s my plan for when I eventually leave the GCC?

“This challenge has value as a financial reset, but if someone truly wants financial security, they need a structured, long-term wealth-building strategy,” he said, adding that one can’t save their way to wealth, it must be invested.

“Cutting back on lattes won’t build long-term financial security, what will is a structured plan that turns savings into real assets,” he concluded.