Spending Ideas to support your Budget while using BNPL

Coins go into a red piggy bank

It's a new year, and we know you are striving to get closer to your financial goals in 2025. Here are 11 top tips for anyone serious about saving money and using Buy Now Pay Later providers responsibly in the new year, especially for those who use Buy Now Pay Later providers.

This is not financial advice and you should thoroughly research any financial products for yourself before using.

1. Set a BNPL Budget Cap

   Avoid overcommitting by ensuring that payments fit within your regular expenses. Allocate a specific percentage of your monthly budget to BNPL purchases (e.g., no more than 10-15% of your disposable income). Know what that looks like weekly and stick to it.

   
   

2. Track Installments in Your Budget

Use a spreadsheet or budgeting apps to list your BNPL payments as recurring expenses. Check what reminders your banking app offers.

Add reminders for payment due dates to avoid late fees and interest charges - like the Lone Shark App: coming soon!

Sign up to our newsletter on our homepage to receive a free pay-in-4 payment tracker for google sheets!

3. Combine BNPL Use with Savings Goals

If using BNPL for large purchases, consider matching every BNPL payment with a small contribution to your savings account. This habit ensures you balance spending with building financial security.

4. Prioritize Essential Purchases

Reserve BNPL for essential or high-value items, like household appliances or work tools, rather than discretionary spending.

Avoid using BNPL for impulse buys that could disrupt your financial plan.

5. Leverage Rewards and Promotions

Make your dollar go further. Some purchasing services offer cashback, points or discounts for using their platform or for shopping with them, like Shopback and Flybuys, choose options that provide additional value, and factor these savings into your budget.

6. Plan for Holiday or Big Event Spending

Try to anticipate big spending events in advance. Use BNPL strategically for holidays, gifts or large expenses like weddings or baby gear which are planned. You can use your budget to ensure all payments will be cleared before starting new plans. Rather than waiting to make payments on schedule, try paying them back as soon as you can. Try to avoid repayments using credit!

7. Implement a "Pay Off One, Open One" Rule

Avoid juggling multiple BNPL plans at once. Before starting a new plan, pay off the current one to prevent overlapping payments and repayment getting out of hand. Or consider how you are going to earn more money to meet repayments before your next purchase.

8. Educate Yourself on BNPL Terms

Research the terms and conditions of various BNPL providers.

Choose those with transparent policies, no late fees, and interest-free options.

9. Use BNPL for Budget-Friendly Investments

Consider using BNPL for items that improve your finances long-term, like online courses or tools for a side hustle, rather than consumables or short-lived products. Make a boundary list of purchases you are comfortable using BNPL for and purchases you are not comfortable making in this way. The next time you are tempted to purchase, check your list.

10. Waiting period before purchase

Instate a 48 hour waiting period on new purchases. Set a reminder in your phone to come back to purchases in two day's time. If you still really want the purchase, go ahead. The likelihood is you will have realised you don't need the item, the urgency is gone and you can save your money.

10. No matter your budget, have financial goals & plans

    Even if the days where you no longer need BNPL feel far away, have an idea of your spending and saving goals in your ideal financial situation. What are your monthly earnings, savings, and expenses?

    If you were earning the amount you wanted, would you have bought your five last purchases? Why/Why not?

    
    

    We often think that purchasing items will bring us happiness, especially when we're on a small budget. In reality, you don't need a lot of possessions to be happy. This is particularly clear when money is more freely available and we start to make financial and purchasing goals. Concentrate on how you want to feel, regardless of your financial situation, and work on building resilience against the urge to buy small things to 'feel better'.

By setting clear guidelines and accurately tracking your spending, you can use BNPL as a tool to manage cash flow while staying on track with your new year financial goals.