Got a hole in your wallet? Subscriptions are to blame
There’s a subscription service for practically everything these days, so it wouldn’t be surprising if they’re running your finances into the ground. Between subscription boxes, streaming services, and paywalls everywhere you look, people are subscribing to more services than they realize. How do these small expenses add up?
The Hidden Danger
A survey by The Simple Dollar found that participants spend an average of over $200 a month on subscriptions. This is over $120 more than participants initially thought they spent. Why are these costs so hard to track?
Most subscriptions are reasonably priced. Some even cost as little as $0.99 a month. Subscriptions are also hard to track because they are small costs that are automatically drafted from your bank account. Even if you’ve stopped using the service, it’s harder to notice a forgotten expense of only a few dollars than it would be to notice an unexpected hundred dollar charge.
Subscription companies bank on our forgetfulness. Many people are automatically enrolled in subscription services because they forget to cancel free trials.
Others forget to cancel unused subscriptions or can’t navigate the website to figure out how to do it. For all of these reasons, subscriptions have become a multi-billion dollar industry.
Subscription Boxes Are Wasteful
Subscription boxes seem amazing, but they drain money like a leaky faucet. Can you think of anything that you buy every single month? Most people only use food, toiletries, medicine, and gasoline on a monthly basis. Subscription boxes with miscellaneous items often go unused.
Even if you use the items in your subscription box, remember that the box seller wants to make a profit. You’re most likely either overpaying or getting a smaller supply of the item than you’d get buying it on your own.
If you’re a super subscriber, figure exactly where your hard earned money is being siphoned off to and where you can save!