After-pay, a word that I’m sure for the majority of us flashes images of our current wants that we have been putting off purchasing, temping us just to ‘after-pay it’.
For those who may not be as familiar, Afterpay is the reverse lay-by and is the largest of several ‘buy-now, pay later’ services that has exploded across Australia’s retail market space.
Afterpay makes it so easy to justify purchasing a beautiful new dress for the weekend, given that you can repay the cost of that dress over four fortnightly repayments. Therefore, this is a “future you” problem. All of a sudden, six weeks pass and you’re due for your third repayment instalment. Are you still excited about your new dress that you have already worn three weekends ago? No? Unfortunately, you have an Afterpay hangover (and your fourth repayment still outstanding).
Medical practitioners are beginning to roll out services such as Afterpay, to cover a medical expense straight away. However, will we use a service such as this to get a cavity filled at the dentist? Or as an excuse to get our teeth whitened?
Do not let Afterpay steal your long-term goals for the future.
If you are suffering from an Afterpay hangover, reassess what your spending budget is before you make the plunge into ongoing impulse buys. The instant gratification that you receive upon making a purchase and “treating yourself” is definitely not worth it. The opportunity to build wealth over the long run and being financially secure in your own eyes is more gratifying.