Hi Reader!

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It seems Buy-Now-Pay-Later (BNPL) options are showing up everywhere these days. You can even use them for groceries! But is it really a good idea? Is there a better way?

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BNPL plans can sound like an easy way to get what you want fast. But it’s easy to lose track of how much debt you’re racking up across different platforms. Late fees and interest charges can grow quickly, and you may end up paying much more than your purchase was ever worth. It can even hurt your credit score.

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But what if you could still get the benefit of paying for something in small amounts over time—without the risk? Here’s the twist: change when you make those payments. Pay in installments before your purchase instead of after—a Buy-Now-Pay-Before (BNPB) plan, if you will.

Start a BNPB or “splurge” fund. This can be:

• A separate savings account
• A category or bucket in your budgeting app
• An envelope of cash

Mine is called “Happy Stuff” because that’s what I use it for—little impulse buys that make me smile.

You don’t even need to know what you want to buy when you start. Just put aside what a typical BNPL payment might be each month. Then, the next time you’re tempted to click that BNPL button, check your BNPB fund first. The money will already be waiting for you.

Pro tip: Put your BNPB in a high-yield savings account and set up automatic deposits of a few dollars each month. Give it a fun name to remind you what it’s for. Now, when something catches your eye, you’ll be able to buy it guilt-free—with cash you already set aside.

And if you would like to learn more, schedule a FREE Penny for Your Thoughts Q&A Call

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Remember, small change adds up. Step by step and penny by penny, we’re building a better life. Have a shiny day!

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Laura

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