Most of us have many subscriptions, there is one for movies, reading magazines, fitness apps, editing apps, etc. Like most of us, you may have signed up for these because they started with a free trial. At that point, you input your card details, only for you to forget to cancel the subscription especially if you don’t use such service consistently. Now imagine having six of such subscriptions adding up to your monthly expenses when you are not exactly using them. In this blog, we will look at how to approach this monthly subscription cycle in order to manage your finances better.

Evaluate and Filter

The first thing you need to do is list out all your subscriptions. If you are unsure, you may want to look at your bank statement to see the subscriptions you were charged for. Now, take a close look at your list of subscriptions, sort them into two groups. The reason for this is because you can’t unsubscribe from all these services, there will be some that are useful and the ones that are no longer serving you. You can group them and call the any name you like. For example you may group them into necessities and luxuries.

Necessities are services you can’t do without, such as your phone service or internet connection. They are basically your needs, and are essential for everyday life and work. Luxuries or anything you choose to call them include services you don’t use often, you hardly use, or you can do without.

For each item that falls into the luxury category, you should think about whether it’s worth the money you’re spending. If a service is rarely used, it might not be worth the cost. If you are not sure of what to do. If the service is still a few days to its renewal, you may sleep over it, and if after a few days you are still unsure, cancel the service before you are charged. Even if you later need it, you know you can always resubscribe, and who knows, you may get a discount this time.

When you filter the non-essentials from the essentials, you are being intentional about spending. You will realise that such money can be put to something more useful like savings, paying down credit card debts, etc. One dollar can serve a purpose, so you shouldn’t see any extra cash you cut out as too little.

Plan to Cancel

Now, decide which subscriptions you want to cancel. You may want to start with the ones that are the easiest to let go—those you don’t use often or that aren’t worth the money they cost. But before you hit ‘cancel’, make sure you know the correct way to end each subscription. Sometimes, the way in is not the way out. Some companies don’t make it easy to unsubscribe. They might hide the cancel button on their website or you may need to follow several prompts.

Be prepared to spend a bit of effort on this task. Although it might be a bit of a hassle, canceling these subscriptions can save you money. Remember, you can always resubscribe, there is no ban on you using a service again and again, it’s your money after all. 

Managing Your Remaining Subscriptions

For the subscriptions you choose to keep, don’t just leave them there, there is still a need for proper management. Think about how you can manage them more effectively. 

First, you should check if there are cheaper plans available that still meet your needs. Many services offer options like family plans or annual subscriptions that can be more economical than paying month-by-month. These options usually provide the same benefits but at a reduced overall cost.

For example, if you are subscribed to Canva, there is the option for a team, where two or more people can enjoy the service. If you have a friend or colleague that use this service, you two can come together and cut down costs.

Also, it’s a good idea to set up reminders a few days before your subscription is set to renew, especially for those that renew annually. A whole year is too long to subscribe to what you may no longer need. This reminder will alert you that the renewal date is approaching, giving you time to decide if you want to continue with the service for another year.

Alternatives to Subscriptions

Even though our focus has been on digital subscriptions, there are also other subscriptions taht are not online, for example, gym membership.

Instead of a gym membership, you could opt for pay-as-you-go fitness classes. These allow you to pay for each class as you attend, which can be more cost-effective if you do not go to the gym regularly. However, if it will cost you more, it won’t be a good idea. The internet is full of free exercise resources, including videos and workout plans, which can serve as excellent substitutes for a gym subscription.

Review Regularly

Finally, it’s important to make a regular habit of reviewing your subscriptions. Try to do this every three to six months. This regular check helps you stay aware of exactly what you’re spending money on and why. As time goes by, your interests or your financial situation might change, and so might your need for certain subscriptions. Maybe a service that was essential a few months ago isn’t as necessary now.

Regularly reviewing your subscriptions ensures that you are only paying for what you truly use and need.

Bottom Line

If you are trying to cut down costs, don’t overlook your subscriptions. Sometimes, you don’t even realise you are being charged for some services. Such money could have been used for something else. Financial management is an active exercise, as your finances won’t take care of itself. One of the ways to take charge of your finances is by getting rid of debt. You may have tried everything within your power to pay down debt, but it seems to be proving abortive. Don’t worry, there is a solution.

Do you know you can reduce your debt by up to 80%, and interest will stop immediately? Yes, it’s possible! You can speak with one of our debt experts at EmpireOne Credit to schedule a free consultation. Call us at (416) 900-2324. Being debt-free feels good!