on August 10, 2021
“It’s just $5 per month. What harm could it be?”
“Sure, it’s costly, but I can stop my subscription whenever I want.”
“I’ll just subscribe for the trial period and quit after that.”
Do these phrases sound a little too familiar? Today, it’s very easy to purchase subscription memberships. They are available for just about everything—movie streaming, music, clothing, meals, gaming, and even TP! While many of these services seem like a bargain on the surface (often just $10 or $15 per month), they can add up quickly, especially since the average American has 9 subscriptions at any given time.
What’s more, it’s easy to lose track of expenses when you’re juggling several subscriptions at once. Even though people think they spend less than $80 per month on subscriptions, the average expenditure (as of 2018) was $238. That’s nearly $3,000 every year! Not to mention, many “box subscriptions” contribute to rampant packaging waste, which is becoming a major environmental problem.
Of course, subscription services are convenient, but it may be time to take a step back and think about the actual value of the product (convenience, mainly) versus the cost. Do you really need a subscription for shampoo? Or toothpaste? Or can you just toss those items into the cart during a regular shopping trip? Is it really worth it to pay for a box of ingredients that you have to assemble and cook anyway? Or could you simply keep a stockpile of staples in your home (rice, noodles, frozen vegetables, tomato sauce, etc.) and occasionally order from a restaurant when you don’t feel like cooking?
What To Do?
One way to wrangle your subscriptions is to examine your monthly credit card statements. Which items are monthly subscriptions? Which ones do you use and appreciate the most? Which are more optional?
Then, you might think about consolidating or cutting some of your subscriptions. If you subscribe to multiple TV or movie streaming services, for example, could you cut it down to one at a time? Maybe you could subscribe to Netflix for six months and then switch over to HBO for the following six months.
You might also consider whether you can buy something outright, rather than use a subscription service. Some paid apps give you the option to either subscribe or pay for them once (and it is almost always a better deal to pay for the app in full). Microsoft Office gives you the option to buy its office suite or subscribe (with a subscription you get all the latest updates, but unless you really need the latest and greatest version of PowerPoint or Word, do you really need this service?).
This month, I challenge you to take stock of your subscriptions and stop the ones you don’t need. With the dollars you save, you might fund an emergency savings account or set aside money for plane tickets. Month by month, those subscription dollars add up.