Recurring subscriptions are so common now, from streaming services to fitness apps, to meal delivery kits. Although these services may be convenient and fun, they also unobtrusively suck your wallet every month. Freeing up money by cancelling at least one of the recurring subscriptions is one way to use that freed up cash to accelerate savings and reach financial targets sooner. Below is a brake-by-brake guide on how to find and wash away those extra subscription boxes.
Step 1: Audit Your Current Subscriptions
Start by taking a close look at all the subscriptions you’re currently paying for. Review your:
– Bank statements
– Credit card bills
– Digital wallet transactions (e.g., PayPal, Apple Pay)
Create a list of all recurring charges, noting the monthly or annual cost of each. You may not believe how many subscriptions you’ve accumulated over the years.
Step 2: Assess Usage and Value
After you have listed your subscriptions, assess the extent to which you frequently use each service and whether it has value. Ask yourself:
– How frequently do I use this service?
Will I be able to achieve the same value outside at absolutely no cost, or at a minimal cost?
– Is this subscription aligned with my financial priorities?
For example, if you’re paying for a streaming service but rarely watch it, or a gym membership that goes unused, it’s time to reconsider.
Step 3: Prioritize Your Must-Haves
Not all subscriptions are created equal. Some are essential for your lifestyle, while others are more of a luxury. Categorize your subscriptions into:
1. Essential: Services you genuinely need or use frequently (e.g., internet, work-related tools).
2. Non-essential: Services you can live without (e.g., multiple streaming platforms, niche apps).
Step 4: Cancel or Pause the Non-Essentials
Start by cutting one non-essential subscription. The majority of services are also providing easy access to cancel using their website or app. If you’re hesitant to let go completely, check if there’s an option to pause your subscription or downgrade to a cheaper plan.
Step 5: Monitor the Impact
After canceling, track your spending for a few months to see how it affects your budget. Reallocate the potential savings into an earmarked savings account, an emergency fund, or an investment portfolio. When you can physically see the savings of canceling a subscription, it is likely to give you pause and make you revisit existing billable expenses.
Bonus Tips for Cutting Subscriptions
1. Use Free Alternatives: Replace paid subscriptions with free versions where possible. For example, try ad-supported streaming services or free fitness videos on YouTube, for example.
2. Share with Family or Friends: Many subscription services offer family or group plans. Split the cost with others to get cost reduction without losing access.
3. Negotiate Lower Rates: Contact service providers to ask for discounts or promotions. Loyalty often earns you perks.
4. Leverage Apps for Tracking: Use budgeting apps like True bill or Mint to identify hidden subscriptions and manage recurring expenses.
Final Thoughts
Cutting just one recurring subscription can make a meaningful difference in your financial health. It’s not about deprivation but about aligning your spending with your priorities. By taking a closer look at your subscriptions and making intentional choices, you can free up money to grow your savings and work toward your financial goals. Start small, stay consistent, and watch your savings grow!
