Our Lives… By Subscription Only
Our Whole Life List helps us document our bills, memberships, and subscriptions as a means to keep on top of our finances. If you do this exercise, you will notice that almost everything is a subscription nowadays. This is the new model for software, media (digital and paper), grocery and household supplies, charitable donations, and almost everything else. Many companies offer a discount if you agree to receive the goods or services as a subscription rather than a one-time purchase.
While this model is incredibly successful for the businesses that use it, it can be tricky for consumers. Before you agree to a subscription for anything, ask yourself:
Do I need it or want it often enough to subscribe?
Will I remember to cancel it once I don’t need or want it anymore?
Will the convenience of “set it and forget it,” or the savings realized by subscribing, be canceled out by the money I waste if I don’t cancel it? What about the guilt and stress caused by this waste?
If I subscribe annually rather than monthly (to save money), will the hassle of trying to recoup an annual subscription fee cause more grief than it is worth?
If, after thinking about these questions, you still want to subscribe, here are some tips for staying on top of these subscriptions:
1. Use your calendar to set your own reminders
As soon as you subscribe, make a calendar entry in your paper or digital calendar several months ahead, telling yourself to review the subscription (to see if you still want it). If the company requires advance notice for cancellation, put the reminder on a day that is well in advance of the date that will cost you an extra month (or year).
2. Pay attention to email reminders from the company
Most companies will send you an email reminder about renewals but they won’t hit you over the head with reminders because it is in their interest for you to forget about your subscription. It is worth opening and quickly scanning emails from these companies to see if they are notifying you that your subscription will auto-renew.
3. Make time quarterly or at least annually to review these subscriptions
Even if you don’t track your expenses in Quicken or another application, it is worth the 15 minutes it would take you to eyeball the last 3 months of your credit card and checking account statements (online or paper), looking for recurring charges. You may need to sign on to Apple and to Amazon to review the media and data subscriptions you have there. Those show up on your statements as just Apple or Amazon without telling you what you are paying for. You can cancel them directly on those sites.
4. Use the company’s preferred method to cancel – online works for most, but some may require phone calls
Most companies will provide you with information about how to cancel the service. It is usually online, although sometimes they require you to talk to a salesperson so that they can try to convince you not to cancel. Going through the company’s preferred channel to cancel usually results in a quick cancellation.
5. Enjoy your savings!
Keep a list of canceled subscriptions and what they are worth on an annual basis. Congratulate yourself for not continuing to waste money on subscriptions you don’t need. Celebrate by treating yourself to something using that money, or just add it to your regular transfer to your savings account.
And speaking of subscriptions, if you are interested in our Whole Life List Challenge (which is a monthly subscription) subscribe here. Unlike all those other subscriptions, it is FREE!