The New Spending Habit: Subscriptions

Television set

There are more subscription services than ever out there now, from television and movie streaming services like Netflix, to grocery delivery, gym memberships, game subscriptions, music subscriptions, and clothing delivery. Subscriptions can save you time and be more convenient, but if you are not careful, the monthly cost of all of these subscriptions can add up.

Most subscription services renew monthly, which can make it easy for you to forget about them, allowing the company to continue to charge you for their services. It only takes a few of these forgotten monthly charges to hurt your budget. The best way to combat this is to track your expenses every month. This way you see where your money is going, and you can determine what expenses are hurting your budget. $10 a month may not seem like much, but it adds up to $120 a year, and if you’re paying for multiple subscription services, that will have a large impact on your budget.

While tracking your expenses, look for these subscriptions and determine if they are things you use regularly. When was the last time you used the game or music subscription you are paying for? If it is not something you are enjoying regularly, then cancel it. It’s also worth doing some research to find cheaper or free alternatives to monthly subscriptions. Your local library may have movies or TV shows you can borrow, and online radio may be cheaper than a music subscription.

Cutting down on your monthly subscriptions will free up money to put towards debt repayment or your savings, allowing you to get further ahead financially.