Subscription Budget Killers
Subscription services can be lifesavers or complete money suckers. In short, it’s all about being aware of where your money is going and dumping any services that aren’t necessary. Since everything from billpay to movie rentals can be automated, it’s easy to forget about it. If you’re not paying attention, you could be throwing away your money on things that you don’t really care about. Now, this approach isn’t about cutting out things you enjoy; it’s about eliminating those things you don’t really care about in order to free up your cash for things you’d like more.
1. The top example has to be movie and video game rental services. Services like Netflix and Blockbuster Online can be an incredible convenience and save you a ton on entertainment costs. However, if you don’t actually watch enough movies each month to make it pay off, you’re wasting money. The worst part is that it’s easy to forget that you’re even spending the money since it’s automatically deducted from your account or billed to your credit card. So, if you’ve gotten busy and only watch two to three movies each month, either stop the service (remember, you can always start it up later if things change) or switch to a lower-cost plan.
2. Magazine subscriptions can also be an automated wallet-buster. In some cases, the magazines we get are worth every penny. They’re fun, informative, and, well, they look nice on the coffee table. But before you automatically renew next time, take a moment to evaluate each subscription. Do you look forward to the magazine coming each month? Do you use any of the information you find in it? Do you spend more than 20 minutes reading the magazine? If you can’t answer yes to any of these questions, it’s probably time to let the subscription lapse and put that money to better use.
3. Automatic billpay is awesome, and we’ve actually recommended it previously as a great way to save money and time. However, it’s still important to review your bills instead of just auto-paying them without a second glance. Here are a couple of situations that can easily escape your notice if rely on autopay too much:
- Your electricity bill could spike because you left an unnecessary appliance on or because your insulation has had problems.
- Your teenaged child is single-handedly doubling the gas bill.
- Your bank has accidentally deducted $200 out of your account.
- An identity thief has gotten a hold of your credit card info and charged a few hundred dollars worth of merchandise.
Now, you don’t necessarily need to pore over all your statements, whether online or through the mail. As in the case of the electricity and gas bills, you should just have a rough idea of what your typical bill is, so that you’ll notice any unusual activity that may indicate a problem. Also, you should always scan your credit card bill to ensure that all stores and amounts listed seem typical of your (and your partner’s) shopping habits.
Finally, don’t feel like these are all-or-nothing solutions. The best part about many subscriptions is that you can renew them. Remember, companies want your money—hardly any will penalize you for wanting to come back if you decide that you’d like to start up again. In fact, you can often score a great deal this way. So don’t be afraid to let some services lapse. If you find yourself missing it a lot, then you know it’s probably worth the money. If you forget that you ever needed it, then you were right to put that money elsewhere.
Ready to cut out more expenses while still living fabulously? Read Rethinking Your Coffee Budget--and Still Getting a Caffeine Fix.
Attacking Secret Budget Killers
Mortgage Lessons: Fixed Rate Mortgages
Saving Money at the Grocery Store
Using Envelope Systems to Budget
Will You Be Able to Retire on What You're Saving Now?
Preparing for Your Performance Review Year-Round
Reasons to Get Excited about the PS3
Scandalously Fun Summer Reading
Telecommuting Tips: What Not to Do
Lifestyle Fashion and Beauty Relationships Fitness and Health Money and Finance
Travel Food and Entertaining Site Map
©Utterly Fabulous Network 2006-2007. All Rights Reserved. Email webmaster@utterlyfabulousnetwork.com.