Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
(00:00):
(Transcribed by TurboScribe.ai. Go Unlimited to remove this message.) Everything seems to be a subscription, from the
music we stream to the car features we
use every day.
This subscription culture leaves us feeling more like
renters than owners.
How do we beat it?
Listen to learn how.
Hi, it's the Urban Lady Prepper.
I help single moms and solo women with
practical emergency preparedness.
But of course, all are welcome to be
(00:22):
better prepared for whatever happens next.
Nowadays, it seems like everything has transitioned to
a subscription model, from the music we stream
to the car features we use every day.
This subscription culture has woven itself into the
fabric of our lives, often leaving us feeling
more like renters than owners.
With hidden costs of subscriptions lurking around every
(00:44):
corner, it's easy to see how they can
quietly eat away at our finances, making it
challenging to achieve financial independence.
We used to own CDs or records.
Now we pay to stream our music.
We used to buy DVDs and pay a
monthly fee for cable with different channels.
Now we pay different subscription fees to various
(01:04):
streaming services, giving us hundreds of channels and
extra expenses.
Home ownership used to be a goal, but
now homes are being gobbled up by corporate
entities and turned into communities where homes can
only be rented.
Car leasing is still very much a thing,
and instead of having something we will eventually
own, we have something that we must give
up every couple of years or so.
(01:26):
The music you listen to in your car?
Chances are it's a subscription.
That delivery service that brings you groceries?
Subscription.
Don't want to hear or watch all those
ads?
Sure, pay a monthly fee and you could
be ad free.
From a preparedness standpoint, knowing where your money
is going and establishing priorities is important, especially
(01:47):
with the threat of a recession looming in
the U.S. There are ways to navigate
this landscape without falling prey to those cleverly
disguised sales tactics for yet another subscription.
For this episode, I want to share some
insight and explore practical budgeting tips and strategies
to regain control over your spending and enjoy
the value of paying for something you genuinely
(02:08):
need.
The subscription culture has reshaped how we consume
products and services.
It's essential to understand the underlying dynamics of
whether it's better to own or subscribe.
Ownership signifies having complete control over an asset.
Subscription models offer temporary access in exchange for
recurring fees.
(02:29):
The freedom of owning something outright can be
contrasted with the continual costs of subscriptions.
Imagine buying a car outright versus subscribing to
a ride-sharing service.
While ownership may seem expensive upfront, it can
provide long-term value.
In contrast, subscriptions can be enticing due to
their lower initial costs.
(02:50):
However, they often come with ongoing fees and
these fees can add up, sometimes eclipsing the
cost of ownership over time.
It's crucial to weigh the benefits of immediate
access against the long-term financial implications.
Ultimately, the choice between ownership and subscription hinges
on individual preferences and financial goals.
(03:11):
For those striving for financial independence, understanding these
distinctions is vital.
Make sure to consider both the short-term
conveniences and the potential for future savings.
Subscribing to a music service or a software
platform may seem economical at first.
However, when left unchecked, subscriptions can pile up
and lead to a budget-busting issue.
(03:33):
These often arise as fees for unused services,
unexpected price hikes, or additional features locked behind
paywalls.
Subscriptions can also come with hidden costs that
constrain your budget.
These fees can be sneaky and have been
turning up in surprising places, often catching us
off guard.
These costs manifest in small, seemingly insignificant ways
(03:55):
that accumulate over time.
Some examples are the automatic renewal feature for
subscribing to a music service or software platform,
the monthly charge for a feature that should
have been included or provided as an option
in the item's initial cost, or a subscription
set up as a service that you must
sign up for and pay a monthly fee
(04:16):
to use an item you thought you owned
outright, like a purchase printer that won't allow
you to print unless you subscribe to a
plan.
Recently, purchasers of a printer from a popular
company discovered that if they didn't sign up
for the company's subscription service once the ink
reached a certain level, they could no longer
print.
The company literally held the printer hostage unless
(04:39):
you signed up for one of the subscription
plans.
I experienced this firsthand when my dad needed
help selecting a printer.
I'm very thorough when researching a new item,
wanting to be sure that I get the
most value and options for the money being
spent.
I found the perfect printer for him.
Even though I promised myself never to purchase
a product from that company again, this printer
(05:01):
seemed like the best option, so I bought
it for him.
He loved the printer, but he called me
a few weeks later to let me know
that unless he paid for a monthly subscription,
he would no longer be able to use
the printer.
I'd never heard of that before and thought
it might be some weird promotional thing.
Plus, my dad's not very tech-savvy, and
he has zero patience with any of it.
(05:24):
When I visited him, I did get that
message that more ink would be required, but
I figured it was a promo because there
was plenty of ink in the cartridge.
I thought I bypassed it when I successfully
printed a test page and figured we were
all good.
Turns out we weren't.
A few weeks later, my dad said that
he still couldn't print, and after doing some
research, I found out that this was a
(05:46):
new tactic by the company.
They realized that once the printer was sold,
they could no longer make any money from
it.
They were trying to find a way to
create a subscription service to extract as much
money as possible from consumers.
This would make up for losing money on
a product that can only be sold once.
That test page I printed?
I didn't read it.
(06:06):
It said exactly what my dad said.
No subscription, no printing.
It didn't matter that I bought the printer.
The company had the technology built into it
so they could shut it down if you
didn't pay.
I wasn't happy, and so were other infuriated
customers who did not appreciate being strong-armed
and denied usage of an item they'd purchased
(06:26):
and supposedly owned.
The company changed the tech to allow other
cartridges to be used due to the backlash,
but they later discontinued those printer models.
This tacky tactic is not just for printers.
It also extends to new cars.
My son-in-law purchased a truck last
year and was very annoyed to find out
that Remote Start, a feature usually available as
(06:49):
an option and can be added to the
truck price, was not available as an option
but only as a subscription.
He would have to pay monthly to have
the Remote Start option.
The only thing more ridiculous than that is
if he started the subscription and didn't make
a payment on it, the truck manufacturer could
turn the option off.
Automakers, always looking for ways to make even
(07:11):
more money, have leaned into this tactic, much
to the annoyance of consumers who were already
maxing out their budget with overpriced vehicles and
insurance.
Consumers also need to be wary of subscriptions
that wait 30 days and then automatically enroll
you in a subscription program.
Next thing you know, you're paying for a
surprise subscription you didn't ask for or forgot
(07:32):
about, and now you'll be charged a fee
to cancel it.
So yes, while subscriptions can be convenient and
some can offer perks not available if you
outright purchase an item, you do need to
keep an eye out.
Achieving financial freedom requires careful budgeting and staying
vigilant about recurring expenses.
It's surprising how many services we subscribe to
(07:54):
but rarely use.
So here are some effective strategies for managing
your budget amidst the subscription culture.
1.
Set limits.
Decide on a monthly budget for subscriptions and
stick to it.
2.
Before you agree, find out what the benefits
are for you.
(08:15):
Subscriptions are intended to be a steady monthly
income for the company, disguised and packaged as
convenience for the customer.
Whether you use it or not doesn't matter
to them, as long as you keep paying
for it.
So if you're going to sign up, make
sure it's a really good deal and not
just you subsidizing their company's monthly goal.
(08:35):
3.
Audit your subscriptions regularly and keep them on
a budget spreadsheet.
List all your subscriptions and categorize them by
necessity.
Calendar the cost and due dates, especially if
it's an annual subscription.
Try to keep them on one payment method
so you can better keep track on how
much you're spending on them.
(08:56):
4.
Make sure it continues to fit into your
lifestyle.
Monitor your actual usage and determine if it
justifies what you're paying for it.
Decide whether each subscription helps you achieve your
goals or is essential to your well-being
in some way.
If it doesn't, cancel it.
5.
By following these steps, you can control your
(09:16):
spending and work towards financial independence.
Remember, the key is to balance convenience with
cost-effectiveness.
Regular audits help you identify which subscriptions are
essential and which are expendable.
Sales tactics in the subscription economy are designed
to entice consumers to spend more.
By recognizing these tactics, you can shield yourself
(09:38):
against unnecessary spending.
Here are some common strategies and how to
avoid them.
Free trials.
These often convert to paid plans after a
certain period, and the company counts on you
to forget about it so they can charge
you.
Always set reminders to cancel before the trial
ends if you don't intend to keep using
that product.
(09:58):
Bundle offers.
Promoting multiple services at a discount can lead
to overspending.
Only opt for bundles if you need all
of the services included.
Scarcity messaging.
Limited-time offers create a sense of urgency.
Take time to research if the offer generally
aligns with your needs.
(10:18):
Don't feel pressured to jump on an offer
because of FOMO, fear of missing out.
Companies looking for subscribers will always have a
deal available.
Staying informed about sales tactics can help you
make better financial decisions and avoid the subscription
trap.
There are still times when you have a
choice between owning an item and paying a
subscription fee for it.
(10:39):
So how do you determine which option is
best?
Evaluating the cost of ownership involves looking beyond
immediate expenses.
While subscriptions offer convenience, they could obscure the
real price of long-term ownership.
Here's how to assess costs effectively.
Upfront versus long-term costs.
(11:00):
Compare the initial subscription fee against the total
cost over time.
Value assessment.
Determine if the subscription offer benefits that justify
its cost.
Alternatives.
Explore non-subscription options that might offer a
better value.
A car purchase is a perfect example.
Financing a car to own it outright may
(11:21):
be more expensive and you're paying for an
item that depreciates the moment you drive it
off the lot.
But once you've paid for it, it's yours.
You no longer have to pay for a
comprehensive insurance which can be expensive and you
don't have to bust that car note every
month.
If you're someone who drives a lot, your
mileage is not limited.
You can also do whatever you want to
(11:41):
it.
If you want a green car with yellow
polka dots or some crazy graphics, you can
go ham.
On the other hand, leasing a car may
be a better deal because you may not
drive that much or at least you can
do it within a yearly lease allotment.
And you may prefer the idea of regularly
driving a newer model car which will always
have the latest features and will, hopefully, be
(12:02):
more reliable.
That's something important, especially for single moms and
solo women who want something trustworthy when driving
long distances and at night.
Informed decisions require understanding the actual cost of
ownership.
By evaluating expenses comprehensively, you can align your
spending with your long-term goals and avoid
financial pitfalls.
(12:24):
Being money-savvy amid the subscription culture is
possible with a few strategic approaches.
Some actionable strategies are diversify spending.
Avoid over-reliance on subscriptions by exploring alternative
services.
Invest in ownership.
Consider purchasing products outright to reduce recurring fees
if that makes financial sense for you.
(12:45):
Educate yourself.
Review the terms of the subscription such as
when the special promotional price ends and what
your options are when it does to avoid
surprises.
And always stay informed about your consumer rights.
By implementing these strategies, you're paving the way
to a more secure and predictable financial future.
(13:05):
Remember, consistency in managing expenses and making informed
decisions will empower you and help you be
better prepared financially for any situation.
Thanks for listening.
Until next time, this is the Urban Lady
Prepper signing off.
(13:26):
I'm sure I've given you some things to
think about as you go through the upcoming
week.
Has this episode resonated with you?
Let me know in the comments.
Don't forget to click the link in the
podcast description to get your free Essential Prepper
Checklist.
While there, get one of my cool designs
on a shirt, hat, mug, and more at
my Redbubble store.
Or you can always buy me a coffee
(13:47):
or get a Jace case for emergency medical
needs.
It helps support what I do and I
really appreciate it.
Join me on the socials, especially on YouTube,
where I'll be uploading videos for my blogs
from UrbanLadyPrepper.com.
I appreciate your time with me.
Stay safe, stay sharp, and be ready.