Let’s begin with a short story:
Ryan, a tech-savvy professional, was taken aback when he reviewed his bank statement and found over a dozen subscription charges he had overlooked. Each month, small fees from various fitness apps, streaming services, and even a couple of online magazines accumulated, ultimately totaling hundreds of dollars.
As he analyzed the list, he remembered signing up for some of these services during promotional periods, but many had slipped his mind entirely. The realization left him feeling a bit frustrated, as he struggled to keep his finances in check amidst an overwhelming number of recurring payments. Determined to regain control, he decided it was time to reassess his subscriptions and prioritize his spending.
There are many people out there who can relate to Ryan’s story. We eagerly sign up for subscriptions to services and platforms that we don’t always remember we’re on the hook to pay for month over month.
The real challenge arises when we’ve accumulated so many subscription services over time that we’ve stopped paying attention to how many we’re paying for. This can be dangerous, not only because it can lead to wasteful spending, but subscription prices can rise over time to where we’ll likely find ourselves paying way more than we initially planned.
4 Steps You Can Take to Get a Handle on Your Subscriptions so you Can Enjoy the Benefits Without Letting Them Wreak Havoc on Your Wallet
1 – Do The Math
Add up the cost of every subscription service you’re paying for. The only way to determine if your subscriptions are becoming too expensive is to know how much they’re costing you in the first place.
Don’t assume you know each charge because prices may have changed since you first signed up. It’s not uncommon for subscription services to increase prices periodically so what used to be $5.99 a month might now be $8.99.
2 – Stay Organized
Keep track of all the subscriptions. Use a financial app or other tool that can give you a snapshot of all your subscriptions and their due dates. Using a tool like Triangle’s Money Management makes it easy to categorize all your payments into groups. Creating a category for streaming services will make it easy to see every charge that goes towards subscriptions.
3 – Use It or Lose It
Cancel any subscriptions you find you’re no longer using. If you haven’t gone to the gym in months, but are still paying for it, consider either blocking time off the schedule to head there or cancel it altogether. Signed up for monthly delivery boxes or paying for a streaming service you haven’t used in a while? It might be time to cut those out of your budget.
This step is all about truly reflecting on your needs and wants and determining whether there are any opportunities to free up some extra money by shedding unnecessary spending.
4 – Research and Understand Cancellation Terms
For any new subscriptions you consider, take time to look up and understand the cancellation terms. Before signing up for a new subscription, take a moment to review the cancellation policy.
Check for cancellation fees, renewal costs or other changes. You don’t want to get caught paying extra money to cancel your subscription.
