With the arrival of the New Year, many of us have started to implement working towards our resolutions. One popular resolution is to save money. If you're looking to save money in the New Year, there are a few things you can do. First, take a look at your spending habits. Where are you spending too much money? Are there any areas where you can cut back?
One very common area of spending is often through subscription services. In the era of the digital economy, it’s become easier than ever to subscribe to services and products. From streaming services to meal delivery kits and more, subscription-based businesses have become popular — but they can come with a hidden cost. Subscriptions can be a great way to get access to a variety of products or services, but if you’re not careful, you could find yourself in a situation where you are overspending on them. There any many dangers of subscription-based businesses but you can avoid financial drain by managing your subscriptions wisely.
The stacking cost of subscription services
In recent years, there has been a boom in subscription-based services. From streaming platforms to monthly boxes, it seems like there's a subscription service for everything these days. And while these services can be convenient and even fun, they can also be a major drain on your finances if you're not careful.
Here's a look at some of the most common subscription services and how much they can cost you:
- Netflix: $9-$16/month
- Amazon Prime: $12.99/month
- HBO Now: $14.99/month
- Spotify: $9.99/month
- Apple Music: $9.99/month
As you can see, the costs of these subscription services can add up quickly – especially if you're subscribed to multiple services. And that's not even taking into account other popular subscriptions like gym memberships, dating apps, and food delivery services.
So what can you do to avoid financial drain from subscriptions? First, take inventory of all the subscription services you're currently paying for and determine which ones you really need. Then, set a budget for how much you're willing to spend on subscriptions each month and stick to it. Finally, be sure to cancel any unused subscriptions so you're not wasting money needlessly.
The hidden costs of subscriptions
Subscriptions can be a great way to access content or services on a regular basis, but they can also cause financial drain if you're not careful. Here are some of the hidden costs of subscriptions:
- Late fees: If you're not careful, subscriptions can quickly become expensive with late fees. Make sure to set up reminders for yourself so you always pay on time.
- Price increases: Companies often raise prices on their subscription products over time. This means that what may have been a good deal at first can eventually become quite costly. Pay attention to the pricing of your subscriptions and be prepared for potential price hikes.
- Cancellation fees: Many subscription services charge customers a fee for cancelling their subscription early. Be sure to read the fine print before signing up for any service to avoid being charged these fees down the road.
The lure of convenience
The convenience factor of subscriptions is that they are typically billed monthly, which can make budgeting for them easier. However, this convenience can also lead to financial drain if you're not careful. For example, if you have a subscription for a streaming service, a gym membership, and a food delivery service, that's 3 different bills you're responsible for each month. That's a lot of money going out each month, and it can quickly add up. It's important to be mindful of your spending and make sure you're not overspending on subscriptions. Otherwise, you could find yourself in a difficult financial situation.
Getting rid of that subscription
If you're trying to cut back on expenses or simply don't need a particular subscription anymore, here's how to ensure you cancel a subscription:
- Find the company's contact information. This may be on the website where you signed up for the subscription, on your monthly statement, or in the fine print of the terms and conditions.
- Call or email the company and let them know you'd like to cancel your subscription. Be sure to have your account information handy so they can process your request.
- Some companies may require you to cancel through their online portal. Follow the instructions they provide to cancel your account.
- If you're still being charged after cancelling, reach out to customer service again or dispute the charge with your credit card company.
Alternatives to subscriptions
There are a few alternatives to subscriptions that can help save you money. One option is to purchase items individually as you need them. This can be more expensive in the long run, but it allows you to control your spending and only buy what you need. Another option is to find free or low-cost alternatives to the items you would typically get through a subscription. For example, if you have a subscription for an online streaming service, consider using a free alternative instead. Finally, make sure to cancel any unwanted subscriptions and review your budget regularly to ensure you are not overspending on things you don't need.
Subscription services can be a great money-saving measure if used responsibly, but they can also cause financial drain when not managed properly. Knowing your budget and keeping track of what you are subscribing to is paramount for avoiding this problem. Additionally, make sure that the subscriptions you do have provide real value for your needs. By taking these steps, you will ensure that it’s easy to keep subscription costs in check while still getting maximum benefit from them, and save some extra money by clearing out the unwanted ones.
If you’d like more information about other ways to save and protect your assets, AmeriEstate attorneys are happy to assist. Contact us today to schedule a free consultation.