Be mindful of buy-now-pay-later temptation

Buy-now-pay-later services offer the allure of instant gratification by letting you spread payments over weeks or months without interest – as long as you pay on time. But while these services may seem harmless, they can encourage you to buy more than you can afford.

“Buy-now-pay-later options can obscure the true cost of a purchase, making it easier to overcommit,” adds Dawkins. “What feels like a manageable monthly instalment might be one of many commitments you’re making across different platforms. To prevent this, think of buy-now-pay-later as credit card purchases, not free money. Before clicking ‘pay later’, ask yourself if you could comfortably afford the entire cost upfront. If not, consider holding off on the purchase. Set limits on how often you use these services – no more than once a month, for example – and track all payments as part of your budget to ensure they don’t pile up.”

Embrace the 24-hour rule for impulse buys

“Impulse spending is one of the biggest drivers of financial overcommitment,” says Dawkins. “One effective way to combat this is to implement a 24-hour rule. For any non-essential purchase over a set amount (like £50 or £100, but adjust this to your budget needs), wait a full day before making the final decision. This pause gives you time to reflect on whether you truly need or want the item.

“Impulse purchases are emotionally driven,” she adds. “By delaying the decision, you allow your rational side to weigh in, often resulting in a more thoughtful choice. If you still want the item after 24 hours, and it fits within your budget, go for it. If not, you’ve saved yourself from one more unnecessary expense.”

Do you spend more than you save? How to stop ‘overcommitting’ your finances, according to a money expert