Subscriptions are a convenient way of paying for things with less trouble, but not being organized with these expenses can really hurt your budget. Follow these steps and find out which subscriptions can stay and which ones should go away?
There's a subscription for almost everything we use: cable, gym, wifi, Netflix or music streaming. Automatic billing is very convenient, but sometimes it’s hard to keep track of our expenses. Use the steps in this article to help you evaluate your spending, and make changes to your budget and mindset.
Your first step should be to list out all of your subscription services and your billing dates. Then, calculate the total amount you spend on all of your subscription services in a month. This way you’ll see whether you are overspending or not.
To know how much you should be spending, it is necessary to have set up a budget to have a clear idea of how much money you need for the necessary expenses, and how much you can use for non-vital expenses. Some of these subscriptions will correspond to real needs (such as having an internet connection if you work online) and others will only be wants, which you’ll need to reduce if you are going over budget.
2. Reduce subscriptions
If you are overspending and it’s negatively affecting your budget. So, you need to figure out if you can cancel or temporarily pause any of your subscriptions, based on what we mentioned before. Ideally, there will be some subscriptions that you can cut for good.
3. Check your subscriptions
Though setting up automatic billing is convenient and, for some people, necessary, you should check on the amount you are spending every month. Prices may change or you may have forgotten to cancel a subscription you don’t need anymore.
Many times we take on free trials, which we must remember to cancel before the final date of the offer. So, remember to set a reminder if you don’t want to start spending money instead of saving it.
The bottom line
Subscription services don’t have to destroy your budget. Sometimes you just need to take a good look at how they are really impacting your budget and get them to work in your favor. If you feel you can cancel a subscription do so, you may realize you don”t really need it, or you may be offered a discount code or coupon to bring you back.