Service providers are smart. They know that if you pay for a service by direct debit, it’s likely that you’ll keep paying even after the service has outlived its usefulness.
One customer recently found a magazine subscription that she was paying for at a cost of $18 per quarter, a magazine she hadn’t received in 18 months due to not updating her address when she moved. She put a stop to that pretty quickly and in the process saved $72 over the next twelve months.
Another customer cancelled her gym membership after being presented her annual gym cost, and only visiting the gym a handful of times in the new year. This saved $1,100 over the next year, and that would pay for 44 casual visits at $25 a pop if she was so inclined (which apparently, she’s not).
A third customer discovered double payments for a music service after signing up twice to a free 3-month trial with Spotify. At $11.99 per month, killing one of those subscriptions saves almost $144 over the year.
We recommend you use your spending reports to find the services you are making regular payments on but no longer using.
Even if you’re still using your services, your spending reports may put the cost in perspective and help you make decisions about regular services that you pay for. Are they worth it? Or would the annual cost be better spent contributing to one of your savings or debt repayment goals?
We recommend checking your spending under Hobbies & Entertainment, Shopping, and Personal Care. This would cover subscriptions like magazines, wine subscriptions, pay TV and gym memberships.
Knowledge is power! Know your payments, know where your money is going, and make the best decisions about continuing as you are or changing.