How Much Are Your Monthly Subscriptions Actually Costing You?
Monthly subscriptions are becoming more and more popular, especially throughout quarantine, but do you know how much they are actually costing you? Some people see subscriptions as a rolling amount, therefore they lose track of what they are paying each month.
When thinking of monthly subscriptions there a lot of things which just get forgotten about, therefore, here are some of the most common ones:
- Mobile Phone Services
- Wifi at Home
- TV and Movie Services
- Amazon Prime
- Cloud Storage
- Gaming Services
In 2019, West Monroe Partners announced that the average American spends around $237 a month on subscriptions. Do you pay this much?
There are hundreds of different things in which you may be subscribed too and are probably paying every month or so. But, have you reviewed your usage and realized if you need them or not?
The Cost vs The Benefit
When thinking about whether your subscription is useful/ worth the money, you need to consider the cost and the benefit.
If something you are subscribed to is high cost but high use, it is probably something you will keep as you are getting enjoyment and use out of it. Although, an alternative to this is looking if any other similar subscriptions offer the same service at a lower price.
Whereas, subscriptions which are high cost and low use are probably not worth you carry on paying for it. Especially if you can use the money saved on something else. If you do not use it often, but you do on the odd occasion, you will be able to find something else which does a similar job for a lower price.
On the opposite side of the scale, you find low cost, high use which is perfect. These services are ones which we don’t need to worry about as we get our moneys worth out of them.
Lastly is a low cost, low use. These typically tend to be the things which we forget about due to the cost and the time we spend using them. If these reoccurring payments are slightly dragging you down you should consider whether the small amount fo use you get out of them is worth it.
One of the main subscriptions which people have is a gym membership. But, how many people get use out of the amount they pay each month? Did you know that 18% of people with gym memberships go consistently? Along with this, over 50% of those with gym memberships work out using home gym equipment. So is a membership worth it?
Many people in the US have multiple TV and Movie subscriptions. This could be Netflix, Amazon, Hulu, and many more. But, do you need them all? To figure this out, at first you might be thinking, I use them all on different occasions. But, unless you use them all regularly, is it worth it?
You should consider which tv/movie subscription you use the most when deciding if the other ones are worth the money.
Overspent on Subscriptions?
Sometimes we overspend on things we do not need and that’s when the unexpected bills hit us. They always seem to come at the worst time! In times like this, a payday loan could be your best option as it gives you the chance to pay the bill and still have a little bit of money until your next payday. Although, you need to ensure you can afford to repay the loan before you apply.