It is easy to overlook if you don’t go through your statement with a fine-tooth comb. Sometimes the amount is so minimal that it’s easy to fly under the radar, but all these little charges can add up. If you just can’t resist that free trial, set up a reminder on your phone for when the free period ends, you can decide to renew or cancel at that time and avoid any unwanted charges.
Subscriptions, we all have them. I’m a “set it and forget it” kind of girl. I love the ease of automating everything and not having to worry about it.
But what happens when you really forget, and money is just bleeding out of your account every month?
Companies make it simple to sign up for their services, and it's often too easy for you to let them continue long after you don't need them because either you've forgotten about the subscription or it's difficult to unsubscribe.
But how much money are you really wasting on subscriptions and memberships?
It's probably more than you think.
Let’s start with those free trials. It is very easy to sign up for a free trial, whether it’s a streaming service, food delivery service, or a gym membership.Have you noticed you need to put in your credit card info before signing up? This is because once the “free period” is over, the company will start charging your card every month.
It is easy to overlook if you don’t go through your statement with a fine-tooth comb. Sometimes the amount is so minimal that it’s easy to fly under the radar, but all these little charges can add up.If you just can’t resist that free trial, set up a reminder on your phone for when the free period ends, you can decide to renew or cancel at that time and avoid any unwanted charges.
Now let's talk about those gym memberships.We all sign up with the good intention of finally getting rid of those muffin tops, but statistically, most people stop going altogether only after a couple of months.Maybe that $20 membership doesn’t seem like a big deal, but if you are paying for something you are not using, even $1 is a big deal (well, to me anyway).
Let’s do the math: $20 per month for one year is $240, and some folks go even longer paying for their unused gym memberships. I don’t know about you, but I can think of a lot of things I’d rather spend $240 on.Everyone should be exercising and striving to live a healthier lifestyle. There are lots of ways to do it with just a pair of sneakers and the ground outside.
Now, I am not saying you shouldn’t invest in a gym membership, I'm saying don’t pay for something you are not using.
How about those streaming services?
From Netflix to Hulu, Prime Video to Disney, and Spotify, just to name a few, it’s easy to get lost in the sea of subscriptions.
Hopefully, by now, everyone has stopped paying for expensive cable.
However, if you have every streaming service available out there, you are probably in the same financial position.
They can add up quickly. The prices are going up constantly and now companies like Netflix are cracking down on password sharing. Go through all your subscriptions and have a conversation with your family about which ones are being used regularly.
I don’t know a single person who has time to watch that much TV. If you are paying over $60 per month on streaming services, you probably have too many. And most folks I talk to are paying even more. Don’t forget, all these services provide a free trial.
Don’t forget to cancel if you decide it’s not what you wanted.
So now that you are aware of the extra money draining your bank account every month, how do you manage it? Look over your recent bank and credit card statements and make a list of all your monthly and annual charges for subscriptions and memberships.
Then, think about how much you used each service and whether the expense is justified. If not, consider canceling your plan. In some cases, you may be able to keep a service but switch to a less expensive option that better suits your needs.
There are services for automatic subscription monitoring. Rocket Money is the most popular.
Of course, you will have to sign up for a subscription with Rocket Money which I believe starts at $3 per month.So, unless the thought of doing this yourself is overwhelming and you just don’t have time, then go ahead and sign up for Rocket Money.Just remember to cancel it when you no longer need it.
The bottom line is you could be wasting hundreds of dollars per year by not keeping track of your subscriptions.If you are looking for a way to save some money and stretch that budget just a little further, this could really help.The cost of basically everything has gone up so much these last couple of years. I am here to help!
Sometimes just having a conversation with a financial coach can make things less daunting.
