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.
A MoneyBrilliant customer found a magazine subscription that she was paying for at a cost of $18 per quarter. She hadn’t received this magazine 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 year.
Another customer canceled her gym membership after being presented her annual gym cost. She had only visited the gym a handful of times in the past year. This saved $1,100 over the next year. 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 using your spending reports to find services you may be making regular payments on but no longer using. As well spending reports may put the cost of current services into perspective. Are they worth it? Or would the annual cost be better spent contributing to one of your savings or debt repayment goals?
Check your spending under Hobbies & Entertainment, Shopping, and Personal Care. These categories 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.