We live in a subscription-based world. We subscribe to everything from magazines to gym memberships, gaming and streaming video (Xbox, Netflix, Hulu), cell phones, and cable TV. The problem is, we often sign up for something, provide a credit card (or even debit card) number, and then forget about it. The bill is automatically paid monthly whether or not we use the service. The only time a subscription stops is when we actually take the time to stop it. If you add up all the things you’re paying for, it’s often a much larger number than you think.
Clean Up Your Subscriptions & Discover New Promotions
Every once in a while, it’s a good idea to go through all the things you automatically pay for and see if you really need them. When was the last time you actually went to the gym? Do you really need Netflix and Hulu? Do you still read the morning newspaper or does it sit on the sofa until you use it on the bottom of the bird cage? If you find there are things you aren’t using anymore, cancel them and save the money.
You also should look out for the “promotional” subscription, that charges one rate for 12 or 24 months, then automatically jump to a much higher rate. These are very common in the cable TV industry, for instance. When the rate increases, call and find out what kind of new promotional program is available. They won’t call you and tell you that your rate is about to go up; you have to take the initiative and call them.
Finally, it’s a good idea to call the cell phone and cable company once in a while and see if they have any new programs that will save you some money. They often do, but they don’t advertise it. Have a competitor’s promotional flyer in your hand when you make the call. They probably won’t match the competitor’s program, but they might come close enough to keep you from switching.
Less Subscriptions, More Money
The bottom line is, the less you spend on subscriptions, the more you save for other things, like an IRA or another type of savings account.