Don't Let Subscriptions Drain Your Wallet - Money Tip Tuesday

Recurring subscriptions – such as streaming services, apps, and memberships - can quietly drain a budget. Many people don't realize how much they're spending until it's too late. If you are one of the many people trying to manage several streaming services and other subscription services, it is crucial to pay special attention to subscription payments to properly manage and understand their total cost over time. 

Links:

• Explore Triangle's Money Management tool in online and mobile banking
• Check out TCU University for financial education tips and resources!
• Follow us on Facebook, Instagram and Twitter!
• Learn more about Triangle Credit Union  

Transcript:

Welcome to Money Tip Tuesday from the Making Money Personal podcast. 

Let's start this tip off with a short story. 

Ryan, a tech-savvy professional, was taken aback when he reviewed his bank statement and found over a dozen subscription charges he had overlooked. Each month, small fees from various fitness apps, streaming services, and even a couple of online magazines accumulated, ultimately totaling hundreds of dollars. As he analyzed the list, he remembered signing up for some of these services during promotional periods, but many had slipped his mind entirely. The realization left him feeling a bit frustrated, as he struggled to keep his finances in check amidst an overwhelming number of recurring payments. Determined to regain control, he decided it was time to reassess his subscriptions and prioritize his spending. 

There are many people out there who can relate to Ryan's story. We eagerly sign up for subscriptions to services and platforms that we don’t always remember we’re on the hook to pay for month over month.  

The real challenge arises when we've accumulated so many subscription services over time that we’ve stopped paying attention to how many we’re paying. This can be dangerous, not only because it can lead to wasteful spending, but subscription prices can rise over time to where we’ll likely find ourselves paying way more than we initially planned.  

 This tip is about empowering you to live more financially free by building awareness on how to properly manage the subscriptions you currently use.  

Here are three things you can do to take charge of your subscriptions so you can enjoy the benefits without letting them wreak havoc on your wallet.  

First of all, do the math. Add up the cost of every subscription service you’re paying for. The only way to determine if your subscriptions are becoming too expensive is to know how much they’re costing you in the first place. Don’t assume you know each charge because prices may have changed since you first signed up. It’s not uncommon for subscription services to increase prices periodically so what used to be $5.99 a month might now be $8.99.  

Second, stay organized. Keep track of all the subscriptions. Use a financial app or other tool that can give you a snapshot of all your subscriptions and their due dates. Using a tool like Triangle’s Money Management makes it easy to categorize all your payments into groups. Creating a category for streaming services will make it easy to see every charge that goes towards subscriptions.  

Third, use it or lose it. Cancel any subscriptions you find you’re no longer using. If you haven’t gone to the gym in months, but are still paying for it, consider either blocking time off the schedule to head there or cancel it altogether. Signed up for monthly delivery boxes or paying for a streaming service you haven’t used in a while, it might be time to cut those out of your budget. This step is all about truly reflecting on your needs and wants and determining whether there are any opportunities to free up some extra money by shedding unnecessary spending.  

Finally, for any new subscriptions you consider, take time to look up and understand the cancellation terms. Before signing up for a new subscription, take a moment to review the cancellation policy. Check for cancellation fees, renewal costs or other changes. You don’t want to get caught paying extra money to cancel your subscription.  

If there are any other tips or topics you would like us to cover, let us know at [e-mail]. Like and follow our Making Money Personal FB and IG page and look for our sponsor, Triangle Credit Union on social media to share your thoughts.   

Thanks for listening to today’s Money Tip Tuesday and check out our other tips and episodes