Subscriptions – the price of convenience

Subscriptions have become an incredibly common way companies make their products and services available to us. Typically for a monthly fee you get access to endless shows, music, cosmetics, meals, you name it. However, subscriptions can be a sneaky way for expenses to accumulate. Before you know it, you may be paying for more than you can afford.  

It all adds up 

Subscriptions are unique in that they function completely differently than a one-time expense. That means there’s opportunity to lose track in the long run of what you’re paying for. It can get to a point where you’re unconsciously paying for things you can’t afford, potentially adding to credit card debt without even realizing it.   

Subscription red flags 

• Automatic payments feel invisible.  
  • Payments get taken out of your account automatically making it easier for them to go unnoticed and unaccounted for.
• The illusion of low cost 
  • Small subscription fees can feel like a drop in the bucket, but it adds up each month and it certainly adds up when you’re juggling multiple subscriptions. It can become easy to underestimate how much subscriptions really impact your spending long-term. 
• Subscription stacking 
  • So many products and services are offered through subscriptions. Some of us even pay for multiple subscriptions that are very similar (ie. Netflix, Crave, Disney+) because of the difference in offerings or features. You might feel like you need all of these subscriptions, but it’s important to ask yourself if you’re really getting your money’s worth out of them. 
• Cost increase acceptance  
  • Subscription prices can creep up over time. It can be easy to justify a price increase when you’re used to paying for that service, especially when you don’t want to lose access to it. Even though a few extra dollars a month may not seem like a big deal, it adds in the long run.

How to stay in control  

• Audit your subscriptions every 3 months to make sure you’re only paying for what you use 
• Know exactly what subscriptions you’re paying for, how much they are and when they renew. Use a subscription tracker app or make one yourself.  
• Set reminders for subscription renewals. Especially for when free trials end so you don’t start getting charged.  
• Use one card for all subscriptions so it’s easier to track and review what you’re paying for.
• Unsure if you really need it? Try cancelling a subscription. If you don’t miss it after a few weeks, it wasn’t worth keeping.
• Include an amount for subscriptions in your budget.

Subscriptions are a great way to get convenient and consistent access to things you enjoy using every day. But they’re also a great way to incur additional expenses without even realizing how the monthly costs add up. It’s important to judge a subscription’s value on if it brings you joy, makes life easier, and most importantly if you get regular use out of it. Think music streaming services if you use it daily, or a fitness app instead of a costly gym membership. By being intentional with your subscriptions, you can enjoy the convenience without letting the costs get out of control.