You know what’s better than a resolution? Having enough money to achieve that resolution. If you want to save money, there’s no better way to do that than by canceling subscriptions and memberships that you don’t use anymore. Let’s take a look at why to cancel unused memberships so that you can benefit from these savings all the way through to the rest of the year.
How do you know which memberships and subscriptions you should get rid of?
The first step is to think hard which subscriptions you are actually using and getting value out of. Maybe there are some you should keep but you need to think hard if you’re using it enough to make keeping it worth it. Most companies make it easy to cancel online, but if a company doesn’t then you may need to contact customer service directly or look for a cancellation/refund policy on their website.
You can also call customer service, use online chat or email them directly with your request. You could even try social media platforms like Twitter or Facebook if they’re being particularly difficult! Most companies do not want the negative public press from frustrated users and will be more likely to help resolve your issues.
What are the benefits of cancelling subscriptions?
Canceling memberships is a great way to save money, but it can also help you get rid of things that are wasting your time and taking attention away from doing things that are more beneficial to your health and overall wellbeing.
Some of the benefits:
- Cost savings. Cancelling recurring subscriptions can lead to significant savings, especially if multiple subscriptions are cancelled.
- Reduced attention hogging. Having fewer subscriptions can lead to reduced clutter, both physically and mentally, as you won’t have to manage multiple bills or keep track of multiple login credentials.
- Increased spending control. By cancelling subscriptions, you regain control over your spending and can allocate the freed up funds towards other priorities or investments.
- More freedom from fixed monthly costs. Without the recurring cost, you have more freedom to make choices about how you want to spend your time and money each month.
Determine whether you really need the service or not
Canceling unused memberships is a great way to save money. If you’re like most people, you have a lot of memberships that cost money but don’t really provide that much benefit to you. Whether it’s the gym or Netflix, there are plenty of ways to spend your hard-earned cash and many of these expenses should be canceled when you’re no longer getting any value out of the service.
The first thing you should do when canceling your membership is figure out how much money you’re actually spending on it each month. If someone tells me they want to cancel their gym membership because it’s too expensive but they still like to use the gym often, I would tell them to look up what other options might be available.
For example, spending hundreds of dollars per month at an Equinox gym might be a good value to some while others would get just as much value from going to their local 24 hour fitness or even finding free ways to exercise outside! My favorite exercise is running and hiking so luckily that is a very low cost activity to start out with.
I recently cancelled my Netflix subscription after having it for a few years because I was barely using it. This was before all of the controversy they started having about limiting the users ability to share their passwords. There’s so many other streaming platforms that I either get for free or a lower cost that I can no longer justify the expense of Netflix. Plus it helps I’m also trying to reduce the amount of time that I spend watching movies/tv.
Think about the opportunity cost. Canceling unnecessary memberships can help you save money and focus on other activities.
You only have so much time in a day and so much money you make each month. If you’re not spending time or money on one thing, that’s extra time or money you could be spending on something else.
Think about it this way, if you can save $20/month extra by cancelling your Netflix membership and you instead start putting that money into an index fund, the money will be able to grow into more money on its own.
Check out this example below from the compound interest calculator at investor.gov
I started out with $0 and put in $20/month averaging an annual interest rate of 10% for 30 years. After 30 years, you’ll have almost $40k saved up! That’s not too bad for something you never really watched anyway.
It’s not just money you have to consider as the opportunity cost, it’s your time too. I’d actually argue your time is more valuable than money. By getting rid of binge watching tv can help you have more time to work out, have more hobbies, or pick up a side hustle. Maybe you can keep that gym membership after all and cancel your streaming membership instead!
So trash those unused subscriptions and save money!
Don’t worry if you haven’t been paying attention to how much money you’re wasting each month, it’s never too early to start monitoring your monthly expenses. Cutting down on recurring subscriptions can be a total game-changer, giving you more money to play with and giving you control over your spending and time. And the best part? You’ll have more freedom to choose how you want to spend your hard-earned cash each month. Plus, you can use the extra funds to reach your financial goals or save more in your retirement fund.
At the end of the day, it doesn’t matter if you are using your subscriptions consistently and find value in paying for it each month. But cancelling recurring subscriptions is a smart move that can help you lead a more balanced and financially savvy life.