Payday Feels Good... Until It Doesn’t: How to Avoid Regret Spending 🙇

Greetings, and welcome to the seventeenth edition of Wallet Wellness in 2025 - your weekly source of practical personal finance tips to elevate your money management skills.

We hope you had a chance to check out the last edition, where we discussed salaries vs inflation and how to stay ahead in a costly economy. In today’s edition, we explore how to avoid regret spending after the frenzy of payday.

As always, be sure to check out the Concept Corner below for a deep dive into the money concept of the week.

Let’s dive in! 

Sponsored Content

This week’s newsletter is brought to you by Umba Microfinance Bank. Umba is Kenya’s digital Microfinance Bank licensed by the Central Bank of Kenya. 𝐖𝐢𝐭𝐡 𝐔𝐦𝐛𝐚'𝐬 𝐋𝐨𝐠𝐛𝐨𝐨𝐤𝐋𝐨𝐚𝐧, 𝐲𝐨𝐮 𝐜𝐚𝐧 𝐚𝐜𝐜𝐞𝐬𝐬 𝐛𝐞𝐭𝐰𝐞𝐞𝐧 𝐊𝐬𝐡𝟏𝟎𝟎,𝟎𝟎𝟎 𝐚𝐧𝐝 𝐊𝐬𝐡𝟏.𝟕 𝐦𝐢𝐥𝐥𝐢𝐨𝐧 𝐚𝐭 𝐣𝐮𝐬𝐭 𝟑% 𝐢𝐧𝐭𝐞𝐫𝐞𝐬𝐭. Plus, you keep your car while using the funds to solve your financial needs.

MONEY254 TIP OF THE WEEK

Payday Feels Good… Until It Doesn’t: How to Avoid Regret Spending 🙇

The buzz of payday is real. 

That instant relief, the plans, the mental spending sprees—“I’ve earned it,” you say.
And yes, you have. But what often follows is regret, and a scramble to stretch the last shillings into the next cycle.

Why does this happen so often? A mix of psychology, culture, habits, and sometimes, pure exhaustion. 

Today, we’re slowing it down and asking: What if payday joy didn’t have to turn into payday regret? Let's get to it!

 1. Payday Euphoria Is a Real Thing 🧠

Payday triggers a powerful emotional response—it’s your brain’s reward system in overdrive. But when emotion drives spending, logic often takes the backseat.

• Why It Matters: Emotional spending clouds judgment and leads to impulsive decisions that chip away at your financial goals.

• Underlying Drivers: A sense of “I deserve this” after hard work, peer pressure, or even stress relief.

• What to Do: Pause before spending. Create a “24-hour rule” for any non-essential purchase. Let logic return before money leaves your account. Read More.

 2. Budgeting After Spending Never Works 📅

Many people wait until the dust settles to look at their finances, but by then, most of the money is gone.

• Why It Matters: You miss the chance to assign your money a job before it finds one on its own.

• What Gets in the Way: A sense of freedom that comes with payday, or not having a budgeting ritual in place.

• What to Do: Budget before payday. Have a spending plan already written, even if it’s rough—give every shilling direction the moment it lands. Read More.

 3. Lifestyle Creep Starts Here 🛍️

That innocent splurge to "treat yourself" can slowly evolve into normalised overspending, especially if your income has increased.

• Why It Matters: Over time, your expenses rise to meet (and overtake) your income, keeping you financially stuck. Read More.

• What Fuels It: Subtle peer comparison, increased responsibilities, or assuming more income means more room to spend.

• What to Do: Audit your upgrades. Ask: Is this sustainable? Is it bringing long-term value or just a fleeting thrill?

 4. “Small” Impulses Add Up 💳

It’s not the big expenses that drain your account—it’s the small, daily indulgences that add up silently.

• Why It Matters: Frequent, minor expenses create an illusion of control while slowly wrecking your budget.

• Where It Hides: Delivery fees, airtime top-ups, snacks, streaming subscriptions you forgot. Read More.

• What to Do: Track every shilling for a week. The awareness alone will help reset your habits.

5. Guilt Can Be a Trap Too 🔁 

Some people overcorrect from spending guilt by going into ultra-restriction, only to swing back to overspending later.

• Why It Matters: This cycle prevents healthy, consistent money habits. You’re either “on” or “off” instead of building balance.

• What It Looks Like: Panic-saving after spending, deleting bank apps, or avoiding your wallet until the next payday.

• What to Do: Build a spending framework that includes joy. Budget for fun on purpose—without shame.

 6. Payday Should Be a System, Not a Surprise 🧩

If you find yourself shocked by your own spending patterns every month, it’s time to build systems that put you in control.

• Why It Matters: Systems reduce emotional decision-making and make good habits automatic.

• What’s Missing: A payday routine—automated saving, debt repayment, and spending caps.

• What to Do: Set calendar reminders for recurring money check-ins. Automate key expenses. Decide once, then let systems run. Read More.

Payday doesn’t have to be a rollercoaster. With a little intention and structure, you can enjoy it fully, without mid-month regrets. Remember, the goal isn’t to spend less, it’s to spend smarter.

CONCEPT CORNER

Lifestyle Creep

Lifestyle Creep is the gradual increase in your spending as your income rises. Instead of saving or investing the extra money, you upgrade your lifestyle—nicer clothes, fancier meals, pricier gadgets, bigger house, more rent, often without realizing it. Over time, this makes it hard to build wealth because your expenses keep growing along with your income. You earn more, but you don’t feel richer, because you’re spending more too. Learn More.

Money and Me:
Money Confessions: I am Tired of Pretending to be a Rich Man

“…How can I afford a German car with that salary? Well, it’s not my car to begin with. It’s my wife’s. She earns more than thrice my salary, she is the lucky one - having gotten a job with a leading investment firm just after we graduated.
After we got our first kid, she took a loan and bought our first car…” Read On.

MONEY254 #MONEYTOK

Consequences of FOMO on Your Finances

FOMO, short for “Fear Of Missing Out,” is the overwhelming anxiety you get at the thought of not experiencing the exciting prospect that might be happening elsewhere. Social media has been the biggest contributor to this anxiety in our generation. In today’s #MoneyTok, we look deeply into what FOMO is and how it affects your financial goals. Watch this Video and read this article to dive deeper.

@money254hq

FoMO; Social media has been the biggest contributor to this anxiety in our generation. Pictures and videos we see on social media might so... See more

That's it for the seventeenth Wallet Wellness edition of 2025! We hope these financial tips have added some energy to your weekly hustle. Stay tuned for more practical insights in our next edition of "Wallet Wellness" next week and watch out for Money Weekly.

Also, don’t forget to download the Money254 App on the Google Play Store, and remember that we can help you compare over 300 loans, savings accounts, current accounts, and more if you’re thinking about your next product.

Cheers to your wallet's well-being!

Money254 editorial team.