Driven by the rising cost of cable TV and increased number of commercial breaks, cutting cords used to be the cost-effective option to lower your monthly payments. Comparably when it comes to finding deals, online shopping provided an easy way to compare prices and get the best value without having to drive between stores. In a short amount of time, our media and entertainment options have evolved from a collection on a shelf to a cloud-based library at our fingertips – for as long as we pay the fee. As it is, subscriptions surround us. Our daily lives have shifted from making a one-time purchase to continually paying for content that promises to be the most convenient, most up-to-date, and, at one point, the most comprehensive.
Subscription models center their business around convenience, so once the payment is set up, you usually never have to visit those pages again. Automatic payments are charged to your account however often the service renews and your product or service is delivered without a second thought.
Since many of these services seem affordable at only a few dollars per month, they may not be factored into your monthly budget, even though they can add up quickly. Unless you receive SMS account alerts or check your statement frequently, many of these charges are able to slip by unnoticed, slowly chipping away at your balance.
With this information in tow, use a spreadsheet to organize your data. List the service name, cost, frequency, and whether or not you’ve used the product in the past 3 months. Consider checking when you subscribed in the first place and how often you’ve used it since then, adding up the total price of the service so far and weighing the value you’ve gotten against that price.
When you finally decide which services to cut (and there will be at least one you can live without), make sure that your subscriptions are actually cancelled and not just paused or skipped. Some services will entice you to stay by letting you skip the next month’s delivery or putting a freeze on your account. These temporary breaks will automatically renew after a period of time, sometimes without warning. Read the fine print for each service and check your email or account preferences to ensure that your subscription is truly over. For an added layer of security – and to avoid temptation – delete payment information from your profile.
If the fear of missing out is a contributing factor, research family plans and group discounts for the services you enjoy most. Chances are your friends and loved ones would appreciate the savings as much as you would!
Once you’re finished, make a note in your budget. Evaluate what to do with the newly freed up cash: to save, invest, or spend on other, worthwhile purchases. Depending on how many services you unsubscribe from, you could be saving yourself hundreds of dollars per year! Cut the cord on cord-cutting alternatives and practice active budgeting in your daily life. How much will you save?