How to handle Buy Now Pay Later
Buy Now Pay Later (BNPL) services like Affirm, Klarna, Afterpay, and PayPal Pay in 4 let you split a purchase into installments. Here’s how to track them in Aspire without losing sight of the money you owe.
The challenge
BNPL blurs the line between “spent” and “owed.” You got the item today, but you’re paying over 4–12 weeks. Your budget needs to account for both the commitment and the future payments.
Recommended approach: Category per BNPL plan
For each active BNPL purchase:
Step 1: Create a category
On the Configuration tab, add a category:
- Name: Something specific — “Affirm — Couch” or “Klarna — Shoes”
- Type: ✧ Reportable (so it shows in spending reports)
- Monthly Amount: Set to the installment amount (e.g., $75/month for a 4-payment plan)
Step 2: Log the full purchase now
When you make the BNPL purchase, log the total amount as a transaction:
| Column | What to enter |
|---|---|
| Date | Purchase date |
| Outflow | Full purchase amount (e.g., 300). Leave Inflow blank. |
| Memo | ”Couch — Affirm 4 payments” |
| Account | Your checking account (or wherever the first payment comes from) |
| Category | The spending category the item belongs to (e.g., “Home & Furniture”) |
Wait — but only the first payment left your account today. That’s true, but recording the full amount now means your budget immediately reflects the commitment. You’ve spent $300, even if the money leaves gradually.
Step 3: Fund the BNPL category for future payments
Since only the first payment ($75) actually left your bank today:
- Move $225 from the spending category (Home & Furniture) to your BNPL category (Affirm — Couch) via Category Transfers
- This “holds” the remaining money for future installments
Step 4: Log each installment payment
When each future payment auto-debits from your account:
| Column | What to enter |
|---|---|
| Date | Payment date |
| Outflow | Installment amount (e.g., 75). Leave Inflow blank. |
| Account | Checking account |
| Category | Affirm — Couch (the BNPL category) |
The BNPL category balance decreases with each payment until it hits zero and the plan is complete.
Step 5: Clean up
Once all payments are made, move the category to Hidden Categories on the Configuration tab.
Simpler alternative: Just log each payment
If you don’t want the overhead of a dedicated category per plan:
- When you make a BNPL purchase, note it in a memo
- Each time a payment auto-debits, log it as a transaction against the original spending category (e.g., every $75 payment goes to “Home & Furniture”)
- Make sure that category has funds available each month to cover the installment
This is simpler but means you might forget about upcoming BNPL obligations. The first approach gives you full visibility.
Tips
- Don’t let BNPL hide overspending. If you wouldn’t have bought the item with cash today, BNPL is debt — treat it with the same intentionality.
- Check for fees. Some BNPL plans charge late fees or interest if you miss a payment. Log those under Interest & Fees.
- Set a Monthly Amount on the BNPL category equal to the installment so it shows up during your monthly funding routine.
- Track all active plans. If you have 3 BNPL plans running simultaneously, that’s 3 monthly obligations. Make sure your budget accounts for all of them.