From streaming the latest music to getting razors and beard oils delivered to your doorstep, subscription services help us streamline our lives and enjoy exciting perks. After all, who wants to go shopping for the same product every month when you can have it delivered automatically?
However, subscription services can drain your savings without you even noticing. While they are helpful, many consumers forget which services they are using and end up with financial clutter. There is nothing worse than seeing money leave your account and not remembering which service it is for!
Today, we are looking at how to organise your personal finances and trim back any unnecessary subscriptions. Ready? Scroll down to give your bank account a digital detox.
What Are Paid Subscription Services?
Paid subscription services charge customers repeatedly for a service or product.
Most charge customers on a monthly basis, but sometimes, customers can choose a bespoke timescale that fits their needs. You can usually cancel a subscription anytime, but some companies have a minimum commitment period.
Examples of popular subscription services include:
- Streaming services
- Food services (e.g. HelloFresh)
- Personal hygiene products (e.g. Dollar Shave Club)
This business model is increasingly popular thanks to its convenience. However, you need to make sure you are subscribing to services that truly give you value. If you are unsure whether you need your services or are signed up for too many, use the tips below to cut back on subscriptions.
How To Clear Subscription Services & Save Money
Any list of quick money-saving tips will tell you to cut back on your subscriptions. But here is how you can actually get started.
1. Reflect On Your Subscriptions Every Month
Take time at the start of every month to consider which subscription services you genuinely need. Like your budget, you should regularly check through your subscriptions to see which provides value and which can be cut.
2. Monitor Your Bank Account
You should also regularly check through your outgoing expenses.
You might think you remember all the services you are signed up for, but some might come out of your account without you noticing. This is especially common for services that do not provide a physical product. So, double-check, just in case.
3. Use A Subscription Manager
If you do not already have a list of your subscriptions, you can use subscription manager apps to help you keep track of your finances.
Don’t worry. You won’t have to sign up for another paid subscription to manage your subscriptions! Free apps are available to help you stay in control. Popular picks include Bobby and Hiatus.
4. Wait Three Days Before Committing To A Service
Finally, if another subscription service catches your eye, take three days before you commit.
Waiting before making a non-essential purchase is an easy money-saving tip, as it makes you consider how much you need the service/item and stops any impulse purchases.
If, after three days, you are not as excited about the service, you probably do not need it.
Removing Financial Clutter - The Takeaway
Though helpful, subscription services can quickly add up and make a dent in your expenses. So, always think carefully before inserting your card details and review your services regularly. If it is not needed, it is time for it to go!
Learn more about personal finances on the Cash ASAP blog today.