When Everything Can Be Paid in Installments, One Must Control Their Desires
This article is an opinion piece, and all content and opinions reflect the personal views of the author and do not represent the editorial stance.
The digital economy has transformed how people work, shop, and manage their money. In the past, people would buy goods after having the funds available. Now, consumers can purchase items first and pay for them later through ‘buy now, pay later’ (BNPL) services, which are more popularly known as ‘paylater’ in Indonesia.
On one hand, paylater can help people when facing urgent needs. On the other hand, this convenience can also change the way people think about money.
The price of an item that would normally seem expensive now appears lighter because it is broken down into monthly installments.
This is where the problem begins: people no longer ask themselves, ‘Do I really need this item?’, but rather, ‘Can I afford to pay the installments?’
The second question seems rational, but it can be dangerous if not accompanied by financial awareness. The ability to make installment payments does not always equate to the ability to purchase something.
Someone might feel capable because the installments seem small, even though their income is unstable, they don’t have an emergency fund, and their basic needs for the following month are not guaranteed.
The paylater phenomenon is increasingly important to consider within the context of the gig economy, which refers to a work pattern based on projects, tasks, digital platforms, and employment relationships that are not always permanent.
Freelancers, content creators, project workers, and app-based workers live in a pattern of income that is not always predictable. They may earn a large income in one month but experience a decrease in the following month.
Strategies such as separating personal and work accounts, tracking cash flow, setting aside an emergency fund of three to six months, having independent insurance, and diversifying income are very important.
In situations with unstable income, paylater often emerges as a tool to maintain consumption patterns. When income is delayed, installments feel like a middle ground. When projects have not yet been paid for, paylater feels like a bridge. However, if not carefully managed, that bridge can turn into a new debt trap.
Studies show that gig workers face income uncertainty and mental well-being pressures, especially when the economic situation worsens. This means that flexible work does provide freedom, but it also carries financial risks that must be seriously managed.
The main problem with using paylater is not solely about the technology itself. The problem lies in human behaviour when faced with convenience. In many cases, the line between needs and wants becomes blurred.
Needs are things that, if not met, will disrupt one’s life, health, work, education, and family responsibilities. Food, medicine, school fees, housing, transportation to work, and basic household necessities fall into the category of needs.
Wants, on the other hand, are things that provide comfort, pleasure, social status, or emotional satisfaction but do not necessarily need to be fulfilled immediately. Branded clothing, the latest gadgets, vacations, accessories, expensive hobbies, and shopping due to trends often fall into this category.
In digital life, wants often appear as if they were needs. Advertising makes people feel left out if they don’t buy something. Social media makes other people’s lifestyles seem like a normal standard of living. Discounts and cashback create a feeling of ‘it’s a waste not to buy’. In reality, not buying unnecessary items is not a loss. It is actually a small victory in self-control.